Has the Market Bottomed Out?

I was watching a panel debate on this topic last night and one thing became very clear, no one is clear on this answer. Of course, when you have the company leaders of the countries largest real estate firms weighing in, they are almost obligated to put a positive spin on things. Being in the real estate industry myself, I want to believe the worst is behind us. Unfortunately, I do not.

I do believe that there are rational arguments for why one would take either position. Depending on where you live in this country, your exposure and the reality can look very different. I happen to reside in South Florida, one of the hardest hit markets in the country. Without getting into the dynamics of why certain markets and speculation played a key role that put us in this situation, I believe that the result has spilled over into the overall health of our economy and it will take at least another 2-4 years to work our way out of it.

I also believe that until we once again reach a normal supply/demand ratio in housing, the economy will remain vulnerable, as so much of our GDP is either directly or indirectly tied to housing and construction.

Until then, we have to work with what we've got and strive to make deals happen that move us back in the right direction.

On Wednesday's Newspaper, the business section featured an article about real estate auctions and the prices that were being offered for properties in major cities throughout the country.

I focused specifically on Miami. A graph at the bottom of the page depicted income to value ratios of 6 major cities, including Miami. Miami ranked the third worst city when determining affordability of housing.

The point being that Miami and much of Florida still has a way to go in the form of further price reductions to be in line with much of the rest of the U.S in housing affordability. This will play a major factor in helping us to return to a normal sales cycle. This in large is determined by the amount of available housing on the market.

At the moment Miami Dade has close to a three year supply of housing on the market. A healthy supply of available housing is considered to be 6-9 months by many industry experts. Obviously we have a very long way to go to achieve these ratios. I continue to promote the auction method as a key sales alternative to move inventory and accelerate the sales cycle so we can achieve a healthy housing market once again.

Troy Fowler is a Lic. Real Estate Auctioneer (AU3595) & Lic. Real Estate Broker. Short Sale specialist, REO specialist, BPO provider. CDPE, AARE (Top 1% auctioneer nationwide). Featured in the Miami Herald, Kipplinger, Msncbc Internet, Miami Today's, Daily Business review.

I focus on REO, Short Sales, Auctions and enjoy working with highly motivated buyers and sellers. My background includes working with leading financial institutions and investment banks as a Senior Sales Consultant providing customized training and consulting solutions.

http://www.Auction-Generation.com