A Bell Won't Ring

I heard a quote recently which said, "when home prices hit bottom you won't hear a bell ring." Bottoming out is something that is more clearly identified six to eight months after the event has occurred. Depending on the market it can even take a little longer. However, I have been seeing some positive signals lately and there are some early indicators that we might be getting pretty close to bottom.

Here is what I am seeing:

1. February home resale figures jumped by 5.1%


2. February new home sales also jumped 4.7%


3. Interest rates are officially at historic lows
   

These are national reports and it is important to note that our regional market performs better. These reports may be early indicators that housing is beginning to move in a better direction

Our area is not completely recession proof, but we have felt much less of an impact because of the economic strength of our region. Here is my experience locally:

1. I noticed an increase in buying activity early December 2008 - primarily first-time buyers but some move-up buyers as well.


2. January 2009 started strong and continues busy - mainly first-time buyers and some move-ups.


3. Whenever a home comes on the market and is priced right, it will often produce multiple offers.


4. I am noticing a return of confidence as buyers take advantage of low prices and historic low interest rates.


5. As interest rates dip buyers move off the fence and when they do, they move decisively to purchase well-priced homes.

As I speak with other real estate professionals I'm receiving confirmation that they are having a similar experience. Whenever the market is making a change, real estate agents who are on the front lines every day usually see that change first. I am seeing some positive signals right now.

Have you come across any positive signals?