Our reasons for optimism are plenty. We have the “Perfect Storm” Market for a Buyer. Interest rates are at a 37 year low with the potential for government-directed further reductions in the near future. There are many homes to choose from in most market segments and most of the deadwood, exorbitantly high priced properties, has been removed or is so out of touch with reality that it doesn’t confuse the market anymore. This is good for both Buyers and Sellers. The many overpriced listings of unrealistic Sellers previously served only to confuse other Sellers and cause Buyers to wait for the market drop. Well … the market has dropped, and most Sellers have adjusted their expectations to where they are closer to reality.
Entry level housing is currently available for payments that aren’t much more than rent with little or nothing down given the marvelous interest rates. Many first-time home Buyers are looking and acting right now before the market gets traction. They are delightfully surprised with what they can buy and how affordable it really is today.
At the other end of the market, the just, or soon to be, retired folks will soon be coming to grips with their stock portfolio losses, generally touted in the media at 40% for most of them. They are/will realize that the home they wanted to buy has also dropped that much percentage-wise, and is pretty close to the being the same percentage of their total net worth that it was when they panicked, picked up their marbles, and went home to wait and see what was going to happen.
While Sellers have gone through a tortuous 18 month steady decline in their home’s market value, for the Buyers their stock loss was “instant”, 30 days, or so. BAM! It was, of course, unbelievable. Then it was real … then really real. As they recover from their shock they will be ready to take action, and we believe real estate will be the preferred investment avenue of choice for those looking to mitigate their losses and to protect their economic future.
Our Advice: Real Estate prices are generally around where they were in 2003, and the stock market is around where it was in 2003 - they are about on par with one another. The entire world is working to remedy the economic situation. With that much positive intention it only makes sense that the collective consciousness of the Nation, now one of panic, denial, and inactivity, will change to one of positive expectation and decisive action. As it does everyone will breathe a little easier and the fun and joy will return to our industry.
This is the year of the solution and you can be a part of it. The rebound will come later, but we look to a recovery in 2009 that will establish a new foundation for our market. Get off the sideline and into the game – its where the action is!
When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. firstname.lastname@example.org, www.carsonvalleyland.com