Realty Insider Blog

News in the media today focused on the latest NAR report:<br><br>

"The group's closely watched report showed the annual pace of existing home sales fell 2.6 percent to 5.99 million in April, down from a revised 6.15 million pace in March. It's the first time the pace of sales fell below the 6 million level since June 2003. Economists surveyed by Briefing.com had forecast a little-changed sales rate of 6.13 million." (http://money.cnn.com/2007/05/25/news/economy/home_sales/index.htm?cnn=yes)<br><br>

No real surprise there - market is getting back to historical averages. In Fairfax County the year over year (YOY) numbers for April came out recently and the statistics show that the number of units  for sale is pretty much the same - but for single family homes the number of units sold is down 44% year over year.<br><br>

If you are seller, this means that you will have to price your home aggressively to be among the few actually selling your home in your neighborhood. More than ever, the initial asking price and condition of your home will determine if the home is shown or sits ont he market month after month.<br><br>

If you are a purchaser, there are great deals to be had. However, it is important to remember that many homes are priced correctly already. Also, the most attractive properties will still sell at their asking price. If you are flexible on what property you want you will still be able to get a property well below asking.

Believe it or not, it is possible. There are quite a few restrictions on how it has to be done and what you are allowed to do. But, if you are more comfortable with the real estate market than the stock market, this may be a way to go.

Please see the article here: http://www.bankrate.com/baw/news/ira/20070417_real_estate_self-directed_IRA_a1.asp

The main drawback that I can see is the limited control you have and some tax limitations/implications. The other biggie is that you can not deduct the depreciation. Depreciation is a great way to defer tax, so that one alone may be a deal killer.