This is a popular question that usually stirs a lively conversation, how do you truly know when the market will or has bottomed? The market bottom is a “Historic Date”, with the emphasis on historic, meaning that many will offer conjecture but nobody truly knows until months after it has passed. Only time will tell if the market has truly bottomed. Just as with the stock market, months after the bottom, statistics will show that the market dropped to a certain level and then never went any lower. Thus, that date becomes the lowest point in recent history and marks the bottom of the market. The same is true in Real Estate; you will not know the bottom of a market until months after it passes you by.
When does the real estate market hit bottom?
Many potential buyers today are waiting for the best time to buy and are looking to make a purchase at the bottom of the market. Now if you have read the recent blog on absorption rates and have been tracking inventory levels on Kauai you are probably noticing the market is trending a certain way. Where do you think the bottom is? (Your comments are welcome at the bottom of this page.) Many feel that we are at or close to the bottom and the sales activity reflects this. Historically low interest rates have helped today’s buyers afford homes they had in the past only dreamed of owning.
Do you think it would be prudent to buy before the bottom of the market?
A recent home buyer shared his thoughts on the subject and felt there were clear advantages to buying before the market bottomed. He found that interest rates were great, had a large inventory of homes to choose from with low competition from other buyers and that the sellers were more anxious to sell and open to negotiation.
What will the market look like after the bottom has come?
Once again nobody knows the future. However, if it’s a buyer’s market now, you may be wise to enjoy the advantages mentioned above. After the market has bottomed the climate could change significantly; interest rates could increase to curb inflation, less inventory may lower your selection and cause competition amongst buyers, and sellers could become strong with their negotiations and terms may not be as favorable.
If you have been thinking about owning a slice of paradise and feel now is the time, contact me and let’s make your Island dreams a reality! paul@baliahi.com
Kauai Realty Services and Vacation Accommodations
If you are considering buying a home on Kauai you can see some of the island’s best real estate deals by browsing through the Coldwell Banker Bali Hai Realty Kauai Real Estate Galleries, or use the Map-Based Kauai Home Search.
For the finest quality Kauai vacation rentals including luxury estates, condos, cottages and beach villas, see our Kauai Vacation Rental Galleries or use our new Map-Based Vacation Rental Search feature.
Also please feel free to give us a call. The Bali Hai Realty staff will be happy to help you find the perfect Kauai vacation rental or assist you in the process of buying or selling a Kauai home. We also offer the highest level of personalized Concierge Services to help you plan your Kauai vacation activities.
Your comments are welcome, are you registered?
RSS
