The news is not getting any better (sorry to be a Debbie Downer on such beautiful day!). At some point the market has to turn up – right? Not according to the Seattle Times - it looks like 2011 could be the worst year yet – yikes! Mainly for new homes, people are not buying new construction. Builders are competeing with foreclosures and short sale homes. It also appears that a lot of sales transactions are cancelled, as buyers get cold feet after inspection or as deals get closer to the end. The article states that 16% of deals were cancelled in July. It seems that low priced homes, less than $150,000 and higher end properties, more than $750,000 are the homes that are selling. But the mid-priced homes, they are staying still.
This leads us to the question – To Buy or To Rent? In some markets it might be cheaper to buy a home - but not in Seattle (or New York & San Francisco), its a better investment for people to rent in these cities because you can get more house for your money in an area of town that is more desirable. Because, as mentioned above, those that can’t sell their properties are turning to rental market to off set their mortgage – so that they don’t have to go the foreclosure/short sale route. It’s all one big circle.
For more info on Phillips properties for sale OR for rent check out www.phillipsre.com