Ask any real estate agent what is going on in the market and you will most likely get either it is a great time to buy, interest rates are low and it is a buyer’s market, or it is a great time to sell but there is not much inventory and it is a seller’s market. The common theme is always “it’s a great time”.

Most people who ask that question aren’t looking for detailed market analysis; they are looking for an overview. They may or may not be thinking about buying or selling, but they are interested in the real estate market. 68% of Americans own their home, and according to various studies, an additional 18% want to own homes. Buying or selling a home can appear to be a daunting process, especially for the first time home buyer, but the questions being asked are really one of information. So that is what we will try and do in this blog – provide you some information!

So what is going on in the market? David Solomon, Chief Executive Officer of Goldman Sachs, said “everyone has a point of view and they are so sure. I am not so sure”; neither am I. The continued voices that we hear from various “experts” are somewhat amazing. In going back over the past couple of years it has been a pattern that is being repeated, so one has to listen to the experts with some level of discernment. In fact, on June 23rd Inman News, a well-respected trade publication news service, provided just such an example. Just a few weeks ago industry experts were telling Inman that home prices had risen almost 8% and will continue to rise due to the shortage of inventory. Today Skylar Olson, a senior economist at Zillow, told them that he had projections showing prices dropping by 3%. CoreLogic forecasts an annual price decline over the next 12 months of 1.3%. Chris Hiller, Chief Real Estate Officer for OJO Labs, said “we are going to see a very active summer”, but then he said that layoffs will “slowly drag on housing demand”.

So if you are a seller, what to do? We will talk about that next week.