That's a question we hear frequently.

Has the Real Estate Market Stabilized?

Through The Short Sale Specialist Network, we are in communication on a daily basis with some of the top agents around the country. This questions seems to be something we hear all to often. "When is the Real Estate Market Going to Stabilize"?

How do YOU answer this questions? If I had a crystal ball that could foresee the future, I'd be a billionaire by now! Until I can find one, I can only go by the signs that I see around the country, and formulate an answer based on this evidence. My experience is that home prices in some heavily distressed areas have reached near bottom, but in some areas that felt the hit later than others, the bottom is not in sight. One thing is for certain in many area, home sales are up! Unfortunately, prices are down!

With the Winter slowdown now in full swing, the next two months are critical to the recovery of the real estate market. In my opinion, and from what I've seen, the highly distressed areas that have decreased 60%-70% from the peak (Phoenix, Vegas, and much of Florida), the prices may finally be reaching a plateau. I can certainly speak for our area in North Florida, prices are down, sales are decent.

One big indicator as well is that the number of NEW listings on the MLS is down dramatically, and the total inventory is down dramatically as well. Unemployment will play a key to the recovery of the market. Lenders can modify loans all they want, but if they can't provide employment for borrowers, don't expect them to pay! This variable will continue unfortunately to lead to high numbers of short sales and foreclosures in 2010.

What is the Real Estate Market like in your area?

Has the Market Stabilized?

Are home sales and prices up or down in recent times?

Has inventory gone up or down lately?

Mike Linkenauger

Short Sale Specialist Network

First Coast Realty Associates

(877)737-4903