What you believe is how you perceive! Thinking long term is the secret!

I have been accused of being too optimistic about the future of real estate and I consider that to be a compliment.  As professionals, we have an obligation to ignore the headlines and provide intelligent, well researched alternative thinking for our buyers and sellers.  I was recently asked, "What do you tell your buyers"?   I tell buyers, real estate is not just location, location, location.  It's also about Duration, Duration, Duration.  Right now there is an abundance of available inventory.  Certainly, a great home in a terrific location is less of a problem than ever before. So, couple that with a buyers understanding of how long they plan to be in a community, which they do have some insight and control over and a buyer does intrinsically know whether buying a home is right for them.  

In addition, you must think local, local, local.  Purchasing in Hayward is still a good idea and on a local basis in Alameda County, buying in Pleasanton is a very different process and decision than Hayward. They are both in the same County, right? Think Local!  Throw in some historically low interest rates for good measure and you have a recipe for precisely why you should buy a home today.  In the early 1980's, I sold homes with interest rates at 18.5%.  Admittedly, it was a bit challenging, but Duration paid off.  Many of my customers who bought at 18% in the 1980's walked away with over $1,000,000 in equity.  That is why I have always said, "Don't wait to buy real estate, buy real estate and wait." 

Rents have tripled every 20 years in the East Bay Area since 1958 and they are right on course for tripling again.  It isn't like we live in a vacuum when we don't buy and continue to rent. Right?  As professionals we owe it to our customers to understand their lifestyle needs and help them to avoid becoming a life-long renter.  2o years from now, they will probably have their home paid off and draw social security.  They just may retire if they have a free and clear home.  If not, how in the world will they ever retire?

Putting Bay Area home prices in perspective

Prices for existing single-family homes in the Bay Area are down in all counties except San Francisco the past year. Prices are still up in most counties the past four years and in all nine counties the past eight years.  Please teach your buyers to think; location, location, location and duration, duration, duration.  Low, low, low interest rates, which means, how much a month?  We have always called this The Affordability factor.

Sure this declining market has affected home values, but it has also made homes more affordable in the Bay Area than they have been for several years. Take a look at the facts! 

Source: DataQuick

So, the next time you hear someone say, "This isn't a good time to be buying real estate."  Think about people's lives and their current circumstances.  We aren't selling slippers; one size fits all, we are selling lifestyle, actualization and security.  Buying may not be the best option for some, but it is the very best decision for many!