Should I or Shouldn’t I? If you’re a Seller, or a Buyer, you are probably are asking these questions as we approach springtime! Should I sell? Should I Buy? Is it the right time? The question, If I wait till next year or the following year, will prices rebound and skyrocket back up? Will the Banks gain some stability and loosen their belts freeing up the supply of money for prospective buyers? Are you kidding!!! Seems the lenders continue to tighten their skivvies. Could be sometime before we see prices headed back up…Price volatility over the short-term I’d say sums it up! Buying opportunity, maybe! Selling or buying for the short-term will most likely be volatile, “Buy and hold in Boulder” as they say in the stock market is a safer bet. Short-term buyer speculation is a high risk. A Seller, Selling later could be a high risk. As a Seller, you know right now what you have and what selling price you might realize. This is lower risk. Some background for you to consider: The real estate market is a very slow moving slug. It takes 8-12 months following any serious economic event for the real estate market to react. (We’ve been in one of these markets!) To gauge this market we analyze activity measured by the number of contracts closing, the number of showings, and the number of contracts versus inventory, all compared to earlier years. Consequently, if negative conditions remain consistent for a period of time, average prices will start to come down! As of Feb 1st the City of Boulder single family homes average prices are down <1.4%> YTD. (Better than last month and a good sign that the trend may be up) Median Price is down <2.4%> (half the homes sold above, half sold below). The number of Sold Single family homes is down <25.1%> YTD. In the “Republic of Boulder” this can be deemed as GREAT news since prices are holding in lieu of the number of sales being down versus Year Ago. But who’s counting! The risk of waiting to sell is anybody’s guess. Your situation should be evaluated. Selling now and then buying in the same city is much less risky. “All things rise and fall with the tide” as long as you’re in the same boat, in the same bay. If you sell lower, you’ll buy lower. You could sell now, and then rent and wait it out. Or you could sell and then buy in a market that has fallen hard. The one sure thing is that all markets have momentum (Big Mo) and they are slow moving. Never forget that the “Trend is your Friend”! Timing is surely important here. Buying on the way up is a good risk. A stable, highly desirable market like Boulder where prices are flat is another good risk. Should you buy? I don’t know! Do you have any money? Do you have a job and a paycheck to prove it? If you haven’t talked to your lender in awhile you may not qualify for a loan anymore. Do yourself a favor. Get pre-approved before you go shopping. Know your price range and shop in that range. It will save you and your agent lots of time. Before I forget: Buyers have some “Obamacentive” (homebuyer credit) to purchase a new home. You need to go under contract before April 30th and close by June 30th for a maximum credit of $8,000! This is a completely refundable credit – a dollar for dollar reduction of your income tax liability. If you’re a home owner (long-term resident) wanting to move, you also have a tax incentive to the tune of $6,500, if you’ve been living in the same residence 5 consecutive years during the last 8 years. This is assuming the government coffer keeps on giving and we are able to continue paying China interest on its interest… If you’re a buyer and you have a regular paycheck, and you’re buying in the Boulder Area, it’s probably a safe bet to purchase now. Boulder has only been down <1-3%> on an annual basis only twice in the last 32 years! Now, and once in 1983 when Mortgage Interest rates were 16-18%! Check out www.fhfa.gov to compare your US City price index. Boulder was recently rated the #1 Happiest City in the Country to live by USA Today which continues to make our town a great place to buy. USA Today released its comprehensive list of America's happiest, healthiest cities Monday, and the West was dominant. 8 of the top 10 cities were West of the Mississippi, and 3 of those ten were in the Rocky Mountain West. Posted Feb 15, 2010. This also helps make buying in Boulder a very low risk for the long-term. (5+ years out). Buying in the Short-Term which I see as one to three years out, we may see some price volatility. So what are you waiting for? The 2010 Olympic Winter Games in Vancouver are over and it’s time to get our lives back on the rollercoaster of life and enjoy the fact that we live in one of the Happiest Places on Earth, next to Disneyland that is! Until Next time. I’m your friendly neighborhood Realtor Jeff Feenstra of Feenstra Real Estate and Property Management. I can be reached at 303-931-7320 or email at Jeff@FeenstraRealEstate.com or on the web at www.FeenstraRealEstate.com