Who will pull this market out of its decline? I do not know the exact answer to this question but I do not believe it will be the investor segment. Why? Simply because the return on investment (ROI) is not there right now. The investors I know want a anticipatable ROI within a defined period. In a declining market that is not possible.
So, what will be required to solve the problem? In my opinion these things must happen:
- Overpriced, wishful thinking sellers, will have to leave the market,
- Banks will have to accept the offers they receive on short sales to reduce the inventory,
- Foreclosure properties will have to be sold,
- Banks will have to open up opportunities for buyers of primary residential properties by offering reasonable financing terms with no hidden "escalators."
So, who will be the leader that will pull this market of its decline? I don't have the answer. Time will tell but I do believe that the new market will not be like the previous market. Homes will sell at reasonable prices and appreciate at reasonable levels. That is what has been missing in the market - reasonableness!
Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida.