Is the market recovering or am I riding a wave?

This past week our listings saw an average of 3.5 showings each.   Showing traffic has been steady but more importantly, I am happy to report that some buyers have been showing their willingness to get off the fence and write offers.

I must admit that I am on a high today.   Over the past 10 days I have personally experienced a complete 180 in the market that we’ve been  seeing  in the previous months just after the financial collapse.   Last week I participated  the signing of contracts for  five of my listings  and I’m working on more again this week.  

Given the past six months of a lifeless real estate market, I can’t help but wonder if this is just a fluke or if the market is beginning to see signs of recovery here in Charlotte.   I’d like to think that I am simply just a great real estate agent and I’m ahead of the curve.   But the truth is that anytime I get busy or slow, a quick phone call to my other Realtor friends reminds me that other agents are usually experiencing the same ups and downs that I am.   If that’s true this time around, then the market must be showing signs of improvement.

My  initial assessment  is that the $8000 first time buyer tax credit that was part of last month’s stimulus bill is working.   Most of the offers on which I’ve worked in the past two weeks have been related to first time buyers.   This is great news for sellers in the price point of $200,000 and under.   But if this trend continues, there is sure to be a “trickle up” effect that will eventually reach the higher price points.

When a first time buyer buys, the seller of that homes needs a place to go and often will be trading up.   That pattern should theoretically continue upward into the higher dollar price points.   This whole process could take months and even a year or more.   But it has to start somewhere and now’s as good a time as any.   I’ll report back again over the next few weeks on whether or not I’m riding a wave or the market is truly recovering.   I know I’m not the only one anxious to know for sure.

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