When anticipating the fall real estate market, it is helpful to consider what is happening in our local market (Belmont, Cambridge, Newton, Watertown, Waltham, etc.).  Traditionally, we have until the week before Thanksgiving before the market slows down for the holiday season.  It doesn’t appear that this year will vary from that.  But more importantly, there appears to be more weakness in the economy and real estate market than most experts were predicting.  We have gone from a discussion of a minor turnaround to warnings of a double dip.

What does this mean for those trying to sell their home?  In my opinion, those of you planning on selling your home have a small window of time to sell your property, otherwise plan on holding it long term.  It seems that we will see more loss of value over the next 6-8 months. 

 In our market, Greater Boston, it doesn’t appear to be a major adjustment down.  However, it does signal that if a seller were to wait beyond the spring market to sell their home, they will likely realize less value than if they marketed the home now or in the spring.  If the only goal is to maximize the selling price in the next 12-18 months then the home should be sold now before the economy takes its second downturn. Otherwise, it may take upwards of 3-5 years before the prices recover to the level they are at today. 

 Obviously, there are other things that factor into the decision making process when selling a home.  Relocation, job stability, preparing a home for sale, etc. are all important considerations which affect when a home should be offered for sale.  Therefore, waiting until “next year” may turn into waiting for 5 years.

 On the other side of the spectrum, now is a great time to buy. First time homebuyers have the luxury of price reductions, insanely low interest rates, and bank-owned properties at their disposal.