HOMES ARE SELLING!

Seems like the market has kicked into high gear in the last 4-6 weeks.  Media seems to think the recession is over, and the housing market is rebounding wonderfully.

Part of this I agree with, and some I don't embrace so emphatically!  I do see a lot of activity lately, offers being written and accepted, appointments being made to show homes, etc.  I have been making a concerted effort to get back into viewing the on the market inventory again, and have noticed that when I tour the other Realtors open houses there are always several groups touring each home.  Yes, there are exceptions, the property that is on open house each weekend, or the occasional home that is just in a bad location for one reason or another, but overall, the opens are quite successful.

I do think that there is a renewed interest in housing.  Part due to the poor performance we see in the stock market, and the fear many have of any financial disaster around the globe.  Partly it is due to the need to own something that is a tangable asset.  Especially if you are looking at ways to set yourself up for future retirement.  Our values have gotten back to a price break where you can see that many of the new homes or duplexes out there will pencil out and make great additions to your future income stream.

What I don't agree with is the media signaling that prices are on the rise again.  While we have seen many homes sell for a small percentage higher than they were last year, or the year before, we need to be careful in our thinkiing.  Prices are unlikely to start appreciating like they have in the past, and anyone thinking they can ride out the storm, and see all their lost equity come back are in for a rude awakening.  That equity is gone for good, and we now live in a different world.  Not an end of the world kind of world, but rather a more realistic one.  Buy a rental not for the future appreciation, but rather for the income you will see generated from it in the future plus the fact that you can depreciate these assets.

We are back on track for sure, and I for one, while cautious, am very excited about the future.