Beverly-Hanks & Associates REALTORS®

I am pleased to report the positive momentum which began in the second quarter of this year has continued locally and nationwide into the third quarter of 2009. The statistics in the fourth quarter should show continued improvement over the prior year as the fourth quarter of 2008 was one of the most difficult in recent history.

The statistical gain in unit sales is encouraging and confirms to us that we have reached the bottom of the two year slide in gross sales numbers and are in fact now moving in a positive direction. This is great news!

A thorough analysis of the statistics, however, reveals that the improvements experienced to date are moderate and challenges still lie ahead. Numbers reported on the overall market tell two very different stories. Sales in the lower price ranges, under 250 thousand dollars, are up nationwide  and inventory in this price range has been depleted in many markets and is currently at almost normal levels here (6 months of inventory is considered a balanced market). Sales in the moderate to upper price ranges, however, have continued to languish. In fact sales nationwide for price points above 250 thousand are down, significantly.  This is also the case for properties over 1 million dollars.

The data contained in this report clearly demonstrates the stark difference in sales and inventory levels by price range. Pricing in the real estate business, like most others, is significantly impacted by supply and demand. In the lower price points, with brisk sales and declining inventory, pricing has stabilized and is in fact on an upward trajectory in many markets. Home sales in the upper tier remain soft with abundant inventory that is moving at a much slower sales pace. As always, pricing is subject to variables such as location, condition, neighborhood desirability, and stability etc. but the underlying economic fundamentals cannot be ignored. In order to move property in today’s competitive environment, it must be well priced, well positioned and aggressively marketed.

Many folks now recognized that now is in fact a great time to buy and are reentering the marketplace. It remains a buyer’s market at present, but sellers who recognize this fact and position their properties accordingly are having success in selling them. At Beverly-Hanks & Associates, our team of highly trained professionals stands ready to assist you in making wise decisions whether buying or selling real estate in this evolving marketplace.

W. Neal Hanks, Jr.

For as long as most of us can remember, buying and owning a home has been the hallmark of The American Dream. For some time, though, a significant part of that dream has been the ability to bank on a big return on investment, on the ability to “cash in” on the appreciation in your home’s value if and when push came to shove.

It would seem, however, that the time of reevaluation in priorities might be upon us. It might be time to stop looking at a home purchase not so much as a vehicle for quick financial gain, but as an investment in the happiness and security of you and your family. It’s time to start, once again, thinking of it as your home.

For the past decade or so, it’s been the pattern of many Americans to buy a home, wait for its value to increase and, about 7 years later, move onward and upward, or to simply cash in on the equity that one’s home has amassed. While home sales have recovered somewhat from thier low points last year, prices are down significantly and may take some time to return to the levels we saw in the early part of the 2000’s.

Your home will still increase in value, most assuredly, but this increase will happen at a far more gradual pace than it has in recent years. Given this reality, making sure that you buy a home in which you will be happy and comfortable is more important than ever.

Remember, unless you are an investor, it’s likely you’ll live in the home for at least ten years. As such, you’ll want to ensure that it’s one to which you’ll be happy coming home. One in which you’ll be comfortable. One in which you’ll want to raise your family. Perhaps the most valuable things aren’t the square footage and lavishness of a house, but the things that speak to our core values. Providing stability, a greater sense of self-esteem, pride of ownership: these things are the cornerstones of our very society, and the ones to which we should consider returning.

Talk to your Beverly-Hanks agent. Talk to your financial advisor. Talk to them about making the greatest investment you’ll ever make: an investment in your health, security and overall happiness.