On April 6th Bill and I attended the Coldwell Banker Expo at the Rosemont Convention Center. The wrap-up speaker was Jim Gillespie, President of Coldwell Banker Real Estate. Jim is certainly considered an authority as to the real estate market. I would like to share with you what I felt were some of his most valuable ideas.
Gillespie was most optimistic about the market. He feels we are heading toward a balanced market which means a 6 month supply of inventory. He stated that real estate accounts for 22% of the GDP and that now 16 million young 1st time home buyers can buy homes.
Gillespie said that the industry is vigorously campaigning against talk of eliminating the mortgage interest deduction. If this were passed it would lead to a 15% additional price devaluation which would heavily impact middle income Americans.
In the last 5 months there has been an increase in sales and prices are leveling off. In the past housing has led us out of a downturn in the economy. Consumer spending has improved and household debt is the lowest since 2004 whereas household formation is down. College graduates are moving back with their parents. Surveys show that 70% of people feel it is a good time to buy and 67% think real estate is the safest place to put money. Supply and demand will meet as population grows and prices can only go up. he says people are buying lifestyle not location.
In short, Gillespie believes we are on the brink of recovery and that prices will stabilize and sales will increase from here. From his mouth to God's ears.
Sherry H. kaplan, SFR, CRS
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