June 2011. Is there a recovery on the horizon? I have been in Real Estate only 7 years, so
I have not been through a slump and total recovery period. I have worked through one of the greatest increases in Real Estate sales history, which resulted in one of the most severe market corrections.
Based on market trends witnessed from 2004 to 2007, I can see a few glimmering hopes of a recovery, a shift from a buyer’s market to a seller’s market. An economist may term a seller’s market as a condition where listings out number buyers. It is easy to define a buyer, or seller market, but what are the signs? Here are a few details which made up the sellers market in 2004 to 2007.
Properties often sold for more than list price.
Properties sold in fewer than 90 days.
Properties received multiple offers.
All three of these conditions are resurfacing in the Milwaukee market today. In 2011 I have submitted more than a dozen offers which had received multiple offers within the first 2 weeks, and sold for more than list price. This is becoming a trend in more than one market area in Milwaukee and surrounding suburbs. Many of these properties are REOs, which leads me to believe, they have reached the bottom of the market, and are now beginning a slow climb out of the cellar.
This same trend is evident in homes offered by private sellers. Many of them are receiving multiple offers within the first 2 weeks. Since this trend began in May, I have not seen figures with actual sale prices, but I would suspect they are selling for prices, near, or above list price.
This is good news for sellers, who have been waiting to see where the market would bottom out.
