Real Estate in 2012

Happy New Year Dacula Patch readers. I hope everyone had a great holiday season. The real estate market in 2011 presented a variety of both challenges and opportunities. As we move into 2012, I think we will see more of the same challenges and more of the same opportunities.

Opportunities: Today’s real estate market offers some incredible deals for qualified buyers. The upcoming year will continue to produce a high number of foreclosures and short sales, giving buyers the opportunity to buy at a tremendous discount. The fact that interest rates remain at an all time low just enhances the buying power and keeps monthly payments lower than ever. With 2012 being an election year and the economy dragging along, we should see these low rates for a better part of the year.

Challenges: Both buyers and sellers will have some challenges in 2012. For sellers, the challenge will be pricing their home to compete against foreclosures and short sales. Sellers must understand that is a beauty contest and a price war. The houses that sell win both. But getting an offer isn’t that only challenge. Once a seller gets a signed contract, the chance of the appraisal coming in at the contract price presents yet another challenge. Obviously as low appraisal could put any deal in jeopardy. For buyers there are also challenges. The process from contract to closing when purchasing a foreclosure or short sale is not always a smooth one. Banks are sometimes difficult to deal with and don’t seemed concerned with anyone’s timeline. Buyers must be willing to be a little flexible and patient. If they are able to due so, then they will end up with a great deal in most cases.

So, when I look ahead at 2012, I see more of the same in terms of what the market looked like in 2011. Great deals, great rates and a lot of happy buyers! I hope everyone starts of 2012 on a positive note and carries that momentum forward the entire year.