This morning, as usual I was drinking my coffee and tried to read a newspaper - the disruption was coming from Josephine, my dog who was not happy at all that I was not paying full attention to her. See, Josey spent last four days in the kennels because I had to "get smarter" at the Keller Williams convention (Mega Camp).
I tried to get back to reality of life and realty with full force by reading the latest news and events in the paper. What caught my attention was a headline above the fold in The Oklahoman. It really sounded GREAT! My eyes glanced over the headline words "home-field advantage", wouldn't you think about the Sooners (football) that they have been rated higher or something like that? However, almost immediately I noticed that I am in the business section, so I started reading a bit closer. "Home-field advantage. Oklahoma ranks No.1 in home-value gains" reads the title on the front page of The Oklahoman. The Sooner State leads the nation in appreciation, first among the 50 states."
Well, guys I DO NOT WANT to rub it in but this is great news! Not all of the markets are in the slumps. The media negativity and scare is misleading and eventually has to be corrected. That proverbial gloom and doom doesn't apply to the whole nation. I spoke with a lot of colleagues at the convention and they confirmed it. It is hard for the public to understand that they are manipulated. Because of it everyone is cautious. Sellers are not putting their houses on the market because of fear of selling for too low of a price. Buyers are trying to time the market and wait until it hits the bottom. It is a vicious circle... no one wants to loose.
About timing the market ... you cannot predict when it is going to hit the bottom because when you do it is already too late, meaning that the prices and the rates started to climb. We are in the buyers market. As the concept implies it is time to buy! Check my previous post about why you would want to invest in your new house now. Notice there what happens when the house price goes down but the interest rate goes up...very interesting.
Imagine that I am drawing a line with a pencil and asking you to guess when I am going to stop...you say: NOW and I keep going...then you say it again: NOW and I still keep going...do you get the picture? That is a pretty good example of timing the market. No one can predict the future. Nobody has the crystal ball. We can learn from the history and safely assume that market will be shifting from buyers to sellers market every few years; it is dictated by the rule of supply and demand. In this case, as all of us know, there also was another factor added: loans were given to people who were not qualified and didn't have any "stake" in the new house, meaning no down payment. Most of them knew that they were overextended and wouldn't be able to honor their loan obligation.
Selling and buying in today's market is not easy - even in Oklahoma. But consumers who understand the market will recognize the advantages. A good Realtor will also help them get educated and supply them with more local information so they can make their decisions with much more ease and confidence.
All of this comotion shall pass and hopefully very soon!
Read the article in its entirety: "Oklahoma is No.1 in housing game"
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