If you bought your home just a couple years ago, you may be having some trouble recouping your money right now. Don't worry though, everything in life cycles. Yes, I believe prices were a little over-inflated, and so the market had to equilibrate itself. Owning a home right now is now affordable for more people than it was a few years ago, and people are getting great deals. There is just a ton of houses on the market - what we as agents call inventory. There is more supply than demand, and therefore prices drop, and as prices go down, in standard econ 101, demand goes up. That house at $250k was not so appealing, but at $175k it is a steal! Price changes everything, and it is the key to selling. You can market all you want, but if the price is too high....well, just be prepared to continue marketing it. The price itself is all relative as well, that same $250k house may have seemed extremely reasonable in '05, but in 2010 may need some adjusting.
Like I said, everything cycles. Overtime in the long run, we will have inflation, but it will not be a continuous increase. Things will go up and down, up and down, up and down, each time a little more up than down. The market tries to reach equilibrium - just like our bodies, the environment & every other thing on earth. Buyers & Sellers dictate what happens to the market. Sometimes sellers get the best deal & sometimes buyers do. Right now, it is the buyers turn. Once the inventory is reduced by more people buying (increased demand & decreased supply), prices & values will go back up.
There is one little kink in the system right now - buyers are still a little hesitant to buy. The news is so depressing & it is speaking everyday of unemployment and debt and all kinds of bad stuff. Yes, we all have problems. So what if is there is an 8% unemployment rate, that just means 92% of people have jobs! You need have confidence in our economy & stop worrying about what could happen. Everyone should plan ahead, but don't let the media scare you out of living your life. Nationally, home values have decreased. Locally, they have decreased since 2007, but the NRV is one of the few metropolitan areas that actually experienced an increase in value from 2009 - the first quarter of 2010! There's some comfort food!
So keep haste, Sellers. I know it is frustrating right now, and you may feel like you are not getting what you think your house is worth. Just remember, what your house is worth is relative to time. So, if you want more money for your home and you don't absolutely have to sell right now, just wait a few years. I am not a psychic & not an expert, just a realtor with a basic bachelor's in Econ. I have faith in people, our community & in basic econ 101.
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