The National Association of Home Builders (NAHB) reports that the real estate market is improving in 76 markets across the country. They base part of that onthe number of building permits pulled and increased prices in home sales over the last 6 months. Full article here. Both Joplin and Columbia Missouri made the list.
People are always asking me how the market is doing and when I think it's going to recover. You're probably asked the same question in your area. How do you answer that? It's the worst of times; it's the best of times. ♫ It depends. Where do you live? Why do you want to sell? Or are you buying? What are you buying?
Here's what I know: Interest rates are lower than they've been since the 1940's. Unemployment is higher than it's been since the 1940's. A lot of people can't afford health insurance. I see homeless people every day. I personally know people who have been downsized out of their jobs and worry about being able to pay bills. At the grocery store this afternoon, I noticed people carefully comparing prices before putting items in their carts. You used to be able to get 4 apple turnovers for $3.99 ($1/each); now you get 5 servings cut in HALF for $2.99 ($1.20/each). It may not seem like much but I'm seeing this everywhere I go. Paying more for less.
The only thing I know of that's selling for less now than it did 10 years ago is a house. Not all houses, but a large percentage of them are. I'm not convinced that the real estate market can correct unemployment or high priced food or even our health care dilemma. I am, however, convinced that this is a time in history when fortunes will be made.
Who will make these fortunes? Warren Buffet and Donald Trump have been buying right on through our present 'recession' but they're already rich. The average home buyers are getting great deals on their primary residences but I doubt that they'll get rich; they'll just live a little bit better than they were. So, who's going to significantly improve their financial status before the market turns?
My bet is on the landlords and the people who are buying, rehabbing, and then selling all those REO's. Flippers and landlords - that's who has the best chance of making a fortune in our present market. Think about it. Houses are dirt cheap. Interest rates are low. Fewer people are able to get a mortgage. Sure, there's enough housing now but builders have slowed down, or stopped building completely, for the last 6 years. Builders are not going to be able to catch up as the population increases. We will experience a housing shortage and rents and home prices will rise.
What do you think?
If you are considering selling your home, call 816-560-3758 for a private consultation to analyze value and condition in our current market.
Leading Edge Society 2010 .mobile:816-560-3758 www.MariaMorton.com .
♫ Visions of Dollar $igns Danced In Their Heads ♪ Neighborhoods in Kansas City ♫ Historic Homes of Kansas City ♪ Do You Know Jack? . ...*Information obtained from Heartland MLS is deemed reliable but not guaranteed. **This is an eclectic blog combining a little business with pleasure; please consult a licensed professional before making life altering decisions. ♪♫ . Maria Morton, Realtor©, SRES is a Kansas City Real Estate Agent licensed in MO & KS and affiliated with Prudential Kansas City Realty 816.410.5499.o Maria Morton Copyright © 2011 *Worst of Times - BEst of Times*