Posted by Killer Joe on May 23, 2005 at 11:19:51:
“I was considering selling shortly, as forecast implied that the prices in the market had (or would soon) reached their max.”
Don’t forget that prior to hitting that point the DOM for houses will climb as home sales lose their velocity. A projection of 40 days to sell based on todays sales could grow to 140 days at that point, and really screw up your plans.
Watch for signs that things are changing. This is most notable when you see “Just Reduced” in multiple RE ads coupled with a growing DOM average.
Once the herd gets wind of the change, the inventory skyrockets, and prices can drop 10% overnight. Stay ahead of the curve. Cash in hand now can mean great opportunities when it changes from a sellers market to a buyers market. It’s coming, to what degree and how soon is anybodys guess. You’ll know the winners by the smiles on their faces as the rest of the herd is buying TUMS instead of RE.
Those of us who are positioning ourselves for the inevitable, will be glad we paid attention through the last cycle changes.