Good News and Bad News...
The old adage goes like this, “I’ve got good news and bad news, which do you want to hear first?” The article in the Wall Street Journal by Nick Timiraos and Justin Lahart posted yesterday poses that question. The good news is that economists believe that the overall economy is in recovery mode (although some disagree with this) however real estate is still lagging. Why is this good news? When the economy builds some steam and the threat of job loss becomes a distant memory, the housing market can begin to see some stability. The Wisconsin unemployment market is less than the national market, but is still in troubled waters. We have a long way to go before job loss becomes a distant memory. What’s the bad news? According to the article, home prices are continuing their downward slide, and it is predicted that we may see further erosion over the next two years. So what do we do in the meantime? Sellers who compellingly price their homes will do better than sellers who competitively price their homes. In a sliding downward market, if a homeowner is trying to catch the market (competitive price), they will generally be behind the fall in prices. In other words, they are always the higher price just out of range of most buyers. But the seller who compellingly prices his home will find that they are always in the “mix” with the buyers looking to purchase a new home.
There are buyers out there who are looking for a home to live in, raise their children and avoid the hassles of apartment living. We can all work together to help those buyers and sellers realize their objectives. It isn’t good news or bad news…it is just news.
Posted by: 
Glenn Hanon
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