2008 was a tumultuous year for both buyers and sellers of real estate. Sellers found themselves bombarded with lots bad news, from record foreclosure rates to a dysfunctional credit market and an uncertain future. It was not easy to be a seller last year.

The same could be said for buyers. The fear that you were paying $350,000 today for something that was going to be worth  $250,000 in six months was real, and kept a lot of buyers on the sidelines. The number of foreclosures on the market made it frustrating for buyers dealing with the non distressed seller. They couldn't understand why the price for one house could be 100% of a similar property in foreclosure.

But as the old saying goes, "This too shall pass." We are starting to see signs that the market is correcting. The cost of financing is very reasonable, and properties that are priced right are moving. Many substitute goods are still struggling, and it may be that they never come back in the market, but quality properties are finding buyers in this market.

As a real estate professional, the market conditions are correcting in a couple of very positive ways.

First, the focus on property is not on investment, but on suitability for the buyers lifestyle. That is the primary reason you buy a home, to have a place to live. That focus allows us to work more closely with clients about what is important for them.

Second, the speculative bubble bursting has made good quality properties accessible to the first time homebuyer. That is really critical for the long term growth and stability of the real estate market, both local and national. It is the quality starter home which is the base of the market, which can stay ahead of inflation with appreciation, and which can turn into the stepping stone for a better property later in life. 

So we are focused now on helping our clients, both buyers and sellers, navigate this market, and hopefully when it is all said and done, we will have helped them achieve their housing goal, which is what we are all about!

Hope you have a great 2009!

                        Mike Powers, Broker

 About Fieldstone Real Estate. We are a full service real estate brokerage, providing realty services in southeastern Massachusetts and Rhode Island.