In his column at Realtor Magazine today Robert Freedman makes the point that home values could be, dare I repeat it, dare I say it, too low. “Today’s prices are justified by the fundamentals of the economy and may even represent an undervaluation,” as Freedman reports.
Okay, I can hear you crying, “give me some fundamentals to justify such blasphemy!” Freedman reports very succinctly that distressed sales, which make up half of all closed transactions across the United States for many months now, are creating “market distortions in otherwise stable neighborhoods.” A distressed sale can commonly be 20-25 percent or more below actual values for an area.
For this reason alone the argument is tossed about quite logically in this article that the possibility exists that the widely touted guesstimates that a third or more of homeowners have negative equity might possibly be exaggerated. Keep in mind that in every “bubble” and subsequent correction whether we are talking stocks, real estate, or baseball cards, prices get pushed up beyond reason too high and then get pushed down too low before hitting their next upward trend.
Another unrelated bit of good news regarding the housing sector is that nationally inventory levels are continuing to come down, now 9.5 months of supply, which should continue to help us get back to a more balanced market between buyers and sellers.
If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!