Has the Ashland real estate market hit bottom?

The question we, as Ashland real estate brokers, get asked the most lately is: ”Do you think we have reached the bottom of the market in Ashland?”

My response is: “I believe we have reached the bottom of the market in lower-end Ashland homes – those in the $350,000. & under price category. These homes probably account, in large part, for the recent Multiple Listing Service statistics that the market is up, for the first time in years, from last year, if only .5%.

The homes that are in the mid-price range for Ashland - $400,000. - $750,000. – may still see some downturn, although I believe it will not be as appreciable as in the recent past. I feel the reason for this phenomenon is that most buyers who are in the middle market segment have to sell a home before they can buy another. If they are coming from another area where prices have not held as well as they have in Ashland & they have had to take a “hit” on the sale of their prior home, they may want to try to negotiate a lesser price on their new home. This tactic may or may not work in Ashland, dependent upon how fairly the Ashland home is priced, the condition of the home & property, & whether or not there are multiple bids on the property. (There have certainly been instances lately, in my own experience & that of other brokers in my office, of multiple bids on the same property).

The high-end properties, $750,000. & up, are getting some interest, but these buyers are more cautious in what they offer. Even these wealthier buyers realize they are not entirely immune from what the economy is doing.
Ashland has not seen the great number of “short sales” or foreclosures that other areas have seen, so my personal prediction is that while we may still see some price drops occurring in Ashland, I believe they will not be substantial & the buyer who waits for a small drop might more than lose any advantage of such a drop by a projected rise in interest rates.

-Sandy Royce

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