The moral of the story is that it's time to move forward

Home prices have increased for the first time in three years, and some experts think that we are at the bottom of the market. I do not see it.

It is true that we seem to have avoided a complete economic collapse. The stock market is recovering. CEOs, who were paid massive bonuses for running the economy into the ground and then were paid massive retention bonuses while the economy was in the ground, are now being paid massive bonuses for the recovery. Hey, they are CEOs. They get paid massive bonuses. Deal with it!

Homes are selling. Inventories are down. Companies are hiring. Consumer confidence is returning. The Iraq war is ending. The lie of superior Toyota quality is finally being exposed. GM, Ford, and Chrysler are rebounding. Companies are beginning to see Michigan as a third-world country and starting to transfer employees here. It is all good news.

But I think there is a little bit more to the story. There are still downward pressures on homes prices and the future is uncertain.

Serious home delinquencies are still going up, folks, which means we are still going down. Even when serious home delinquencies start to come down, there are going to be a lot of folks that are so far behind that.

Foreclosures are continuing to rise. Banks are gearing up for short sales. Interest rates appear to be headed up. A 1 percent rise in interest rates equals about a 10 percent decrease in the house that people can afford. What is the moral of the story? The sky is falling? Well yes, of course, but it is not necessarily a bad thing. Every market provides an opportunity for someone.

What is your market opportunity here? If you are a seller and prices are going to continue to fall, then it would be better to sell now and cut your losses. If you are a buyer, and if prices and interest rates are headed up, then it is time to buy before this window of opportunity closes. You may never see another opportunity like this.

If you are selling your home and moving up? You are not giving your home away! You are selling your home for what it is worth in this market, and you are going to save even more money on the home that you are buying. If you are moving laterally, then it is going to be a wash, and if you need to move down, then you need to move down.

The banks threw a boat anchor into the housing market. If you caught that boat anchor and you are now underwater on the value of your home, if you live at 1234 Boat Anchor Lane and you feel gills beginning to form on the side of your neck, it may be time to consider that you are hanging on to someone else’s boat anchor, and it may be time to just let go. RE/MAX Platinum has a short sale department. If you qualify, we can help. Call me at: (810) 444-4168.

The real moral of the story: No matter what your position in this real estate market; it is time to move forward.