A coach and speaker at the NAR (National Association of Realtors) Convention by the name of Rich Levin has absolutely hit the nail on the head! He says “THE TIME IS NOW FOR REAL ESTATE” and he is 100% correct. All of the factors are lining up for the next 6 to 12 months to be that year and here’s why:
Interest rates are dropping below 6% on residential mortgage loans – and this is nationally. The most likely scenario is that these mortgage loan rates will not stay this low for long so buyers would be wise to be actively looking to buy and take advantage very soon.
As buyers realize that it is a good time to buy (but not necessarily for sellers to sell) the demand will begin to absorb the foreclosures and short sales and then exceed supply. Over the next year or two the additional demand may very well lead to a seller’s market, however gradual it may be.
The signs of this shift are occurring now – the supply of new construction and foreclosure homes are being absorbed by first time buyers, investors, and secure homeowners who are taking advantage of their financial strength. “This Spring may be the tipping point when market activity flourishes,” Rich says, and I believe it will. After the first of the year mortgage money should be much more readily available from the banks.
He then refers to inflation as the “X factor” remembering a rapidly inflationary period. For instance, one day you could put a quarter into the vending machine and get a Coke. The next time it was forty cents and the next time it was fifty cents and within five years it was seventy-five cents and so on. Your money buys less and the cost of what you buy increases.
If you owned real estate during this same period you were probably very happy because the property you owned also doubled in price no matter where you lived. Who knows if we are on the verge of another inflationary surge – but if inflation does devalue our money…then real estate prices will increase (along with the price of almost all other hard goods) and this year’s buyers are going to benefit tremendously! Regardless, it is time for buyers to get in the market!
At your leisure I invite you to visit my website at pope-realestate.com and click on the local MLS logo to check out what’s for sale currently. I welcome any questions or requests at any time!
By Martha Pope – Accredited Buyers Representative of the National Association of Realtors. If I can help answer any questions, furnish further information or assist in any way please contact me at my website: pope-realestate.com
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