Real Estate: Bottom In Sight?

There is good news for everybody, it appears that thenumbers associated with the real estate market are
real estate market (which is the catalyst of the currenttrending upward too. For example in Utah during the
downturn) is nearing a bottom. It has to bottom atlast half of 2008 the average number of days a home
some point, economies and markets are cyclical afterhad been on the market was about 100. In January of
all. Granted this downturn is worse than most, we still2009 the average number of days a home had been
have been through this before and we will get throughon the market decreased to about 75. Thus, indicating
this one. The fact that this one is relatively worsethat buyers are slowly coming back to the market
simply means that the relative opportunity is better.because the inventory of unsold Utah homes is
There are amazing deals waiting to happen out there!decreasing. After speaking with a friend who is a Utah
A notorious bear Dr. Mark Zandi the chief economistReal Estate Agent with Keller Williams, I am starting to
of Moody's said "the bottom of the housing downturnsee the turn around first hand as he is starting to get
is in sight for the nation." When bearish economists andbusy and has some deals under contract.
media pundits are saying that the bottom is near, theOn a national level home prices are leveling off and
bottom is near. Much of the issue with recessions andsome of the hardest hit markets are showing relative
downturns is that it is a lot of psychology. When daypositive indicators month to month. The Charlotte
after day Americans hear record foreclosure rates,Observer wrote a piece titled: "Investors targeting
and home values plunging then of course it is going tobargain real estate." Again this is very good news as
get worse. We stop spending and start saving whichinvestors will get back into the real estate market
is simply a consequence (neither good or bad) of livingbefore the average home buyer. Investors are looking
in a consumer oriented economy.to take risk in return for reward, average home buyers
However, we are not only hearing good news butare typically looking for security.