I’m frequently asked, “When will we know when we’ve hit the bottom of the housing market?” Though I don’t know the answer to this question, I always welcome the insight of others. So I was pleased when I read in this morning’s RGJ an article reporting on a recent visit by Houston Association of Realtors Chairman and Stewart Title Chief Economist, Ted C. Jones. According to Mr. Jones, the answer to identifying the bottom is, “When we get multiple months of the same number of sales for six months." I’m interpreting that statement to mean six consecutive months where the number of sales did NOT decline. (See latest sales numbers here.)
Mr. Jones was addressing an audience of 100 Reno business leaders regarding the housing bubble. The RGJ quoted Mr. Jones as saying "You had a bubble, and it’s bursting. It’s time to get realistic." His advice to sellers: Trim the asking price on Homes. See the complete RGJ article here.
How will you know when we’ve hit bottom? Feel free to add your thoughts below in the comments.