In 2007 it started and really 2008 October, the real estate market changed. The landscape changed and homes became abundant on the market, Foreclosures, short Sales, and REO (Bank Owned) properties started to really shape and hurt the sales market. New construction went to the dogs, major builders folded up building and went into renovations eventually, banks got real tight on loans, appraisers were accused of inflating and held responsible so they inevitably started under valuing properties making it even harder to buy a home, and finally the buyers that were available were very picky making this a very heavy buyers market.
2009-11 showed a heavy buyer market and prices continued to fall. Those buying in this time frame depended on their agent to get them the best price possible because the market was still slipping. You have to remember that first time home buyers normally sell within 3 to 5 years so their hopes were that the market would turn around rapidly and they would end up being able to sell their homes for more than what they paid for them. The 3rd quarter of 2011 myself and another agent in my office Noel Harris predicted a change in the market for 3rd quarter 2012.

By mid 2012 the market started to crest and move in the opposite direction. Then in the 3rd quarter of 2012 the market showed some improvement. Homes selling for list price or even having multiple offers. By January 2013 we were getting fewer listings thus making a supply and demand basis which we also call a sellers market. In essence to sum this up the change took place in October 2008 making a buyers market and changed back to a sellers market in October 2012, a 4 year period of a buyers market.
A simple caveat to this is that not all areas have completed their downturn market, not all areas are seeing a 1 to 5 percent increase in home prices (based on the market of 2003-04, prior to the boom), not all areas even in communities with an upturn are experiencing a come back. All we can hope for is a slow change and a gradual increase in property prices. As Richard Dreyfuss said to Bill Murray in "What About Bob","Baby Steps."
For more information contact your Eco-Broker below.Rick Hogue REALTOR, CDPE, Eco-Broker
The Hogue Group a part of Keller Williams Realty Louisville East
A Place to Hang Your Hat and Call Home
502-554-9428
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