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Definition of a perfect storm according to Wikipedia is: The simultaneous occurrence of events which taken individually, would be far less powerful than the result of their chanced combination. I cannot help but to relate this to the current state of the real estate industry.

How is a time such as this refer to as the PERFECT STORM in REAL ESTATE?

  • Interest rates are at its historical 40-year low and remain there.
  • Foreclosures are at a 52-year high.
  • There are lots of inventory out there. Sellers are more susceptible in accepting offers.
  • Investors do not trust the stock market and actively seek a safe place to put money.
  • The mortgage industry is cleaning up their act.

It is a good time to be looking for houses. I call it the "Perfect Storm" because the unusual chains of events have come together to create an optimistic economic climate for buyers that I have never seen before.

I get this question asked very often: I want to buy but I'm not sure if the market is at its bottom yet?

My answer is this: "I do not have a crystal ball and I cannot predict what tomorrow or 6 months will be like in the real estate market, but I do know this. If you are financially and emotionally ready to purchase a home or move-up in house, or down-size in home, the Perfect Storm is happening. If you feel that you need to protect your "investment", then let's offer a price that you feel comfortable with - within reasons and see what the Seller plan to take it from there.

And if you have read the above statement, I will stress that you buy and make a decision for your family when you are financially and emotionally ready.

The PERFECT STORM is happening. But it is only PERFECT with my statement above: when financially and emotionally ready.

 

 

 
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Post is included in group: Realtors®
Post is included in group: Frisco Texas Real Estate
Post is included in group: Buyer Information - What Buyers Need to Know in Today's Market
Post is included in group: Advice for Buyers
Post is included in group: 1st Time Buyers

11 Comments on Are You Ready For The Perfect Storm in the Real Estate Market?

MAR
21
2008

Loreena,

Your right this is the perfect storm, I think where people are slow to react though is that they don't know how to tell when the deterioration of the housing market will be at the floor of the decline and no one wants to buy an asset to find it worth less tomorrow even though it will be higher in value over time.

Take care!

RJH
6:03am • #1
114,129 Points 15 Featured Posts Outside Blog
Loreena You are right.  All the pieces are there (here)!  Let is rain on!  Grab your umbrella.
6:07am • #2
137,051 Points 1 Featured Post Outside Blog

Good Loreena,

You are so right, you may even bet tired of hearing that by the end of the day. wink, We have been telling anyone who will listen and yes, maybe even preaching a little, this is the time to buy. Pointing out all the contributing factors as you have adequately done in your post will, hopefully, give those fence sitters the assurance to make a financially sound decision. 
6:14am • #3
130,345 Points 4 Featured Posts
Yes it is a great time to jump into the market!  In other buyers markets the interest rates were so incredibly high which kept the buyers away unless they had cash.  That makes this buyers market so much different and better!  Good post!
6:43am • #4
135,780 Points Hit Router
I agree with you.  Now is a great time to buy with all the things you mentioned if you are ready you can get a good deal.
6:44am • #5
Hit Router
Great post Loreena! I am looking forward to riding those great waves of Real Estate!!
1:43pm • #6
380,473 Points 22 Featured Posts Localism Sponsor Outside Blog
Love the analogy Loreena....I guess it realy is the perfect time.
10:32pm • #7
MAR
22
2008
7 Featured Posts Localism Sponsor

Hi Loreena, my coach Mike Ferry pleyed a part of the movie when the boat hit the storm as his introduction a couple of years ago at the Superstar Retreat.  One of his big things he talks about a lot and is true is agents let their EGO get in the way too ofter.  The point he made was the captain let his EGO, and not paying attention to changes as the cause for a disaster.  Interesting you would pick it also :). 

After seeing many changes over 32+ years, anytime is the perfect time to buy a home.  To raise your family to have a hedge on inflation, be locked in on a monthly payment not depending on rental rates, and it's everyone's dream to have your own "nest".  Real Estate should always be looked at long term, just like the stock market, it goes up and it goes down!  Who would want to lease their whole life?  Liz

Happy Easter,

1:13am • #8
634,174 Points 68 Featured Posts Outside Blog
Loreena, nothing stays static and I agree with your "Perfect Storm." Especially on interest rates and housing inventory. It is a buyers dream. On the flip side it could be characterized as a seller's nightmare. But well prepared houses priced at market do move. For buyers financially and emotionally ready, NOW, I agree, is the time to make decisions and move forward. Happy Easter to you.
2:19pm • #9
112,250 Points 3 Featured Posts Localism Sponsor
A perfect storm...I like that.  This is so true.  It is a great time to buy.  I have some of the best listings I've had in a long time and sellers are more interested in making a deal.  Come on buyers! 
7:57pm • #10
MAR
23
2008
261,933 Points 16 Featured Posts Outside Blog
Very insightful!!  I like the Perfect Storm analogy!
8:42am • #11

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Loreena Yeo - Broker|Realtor(R) of Frisco TX Homes (214) 783-2210

Frisco, TX

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Address: Frisco, McKinney, Allen, Plano, Valley Ranch, Little Elm, The Colony, North Dallas, Addison, Frisco, TX, 75035

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For your real estate needs, this is a great opportunity to participate in the Frisco, Plano, McKinney, Allen & northern suburbs of greater Dallas. real estate market if you are financially and emotionally ready. Specializing in first time home buyers' needs, luxury homes, short sales and pre-foreclosures, multi-offer negotiations. Sellers can expect a carefully crafted systematic market approach in marketing homes. Hence work with the realtor who does it like none other. You can expect advice and opinions of a conservative perspective on this blog. There are so many things I could do, but I CHOOSE to serve your real estate needs. I couldn't think of anything else I rather do more passionately.

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