Summertime: July Finally

Jim McLeod September 26, 2010

We are really starting to see some good weather and it will become harder to put deals together as the buyers, sellers and facilitators all put themselves into a summer mood and schedule until the kids get back in school. At this time of the year I like to look at the market and adjust my business plan for the balance of the year. What I have noticed in the first 6 months of this year is that unit sales are down, inventory levels are increasing more than I expected, pricing in my opinion has held steady but for how long.

I think we will see mortgage rates continue to trend upward through the remainder of the year; the stock market will be flat and finish with a loss compared to where it started the year. It is my opinion credit thru the banks will continue to be tight for any type of borrowing.

As an investor there are still strong opportunities if you are prepared to hold properties or re merchandise properties such as zoning changes for suites and look at a realistic returned based on the amount invested not on the total leveraged amount.

As an investor I still believe the fundamentals of diversification, risk management and cash property re balancing need to be addressed so you can take advantage of the many opportunities that will present themselves in the next few months. Are you adaptable to the market changes?

All of this means business in the next few months will be more challenging to complete and will take all-embracing expansive type of experience not just more experience. As inventories increase, prices will start to fall so motivation and realism will rule the day to complete the negotiations. Anyone can write the deal but can they get it to close? This will be the question going forward.

What are a few things you need to consider when selling your home

1) Know the current situation in the housing market
2) Price your property realistically
3) Smarten up your home
4) Avoid delays in the selling process
5) Eliminate any problems before you list
6) Read the contracts you are signing
7) Make sure you understand the representation you are receiving
8) Choose the right agent

It is my opinion that the next few months will be like a child in the candy store who likes 10 candies but can only have one but which one. Welcome to real estate going forward this year.

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