People always ask me how real estate is "doing". That depends first on whether you're buying or selling, and second on what part of the country you examine. For 2010, it was "doing something". Depending on who you ask, that ranges from great to awful. Personally, I have no complaints.
Overall, prices are starting to stabilize because sellers are coming to terms with what values they have to accept in this market if they want to sell. Buyers are starting to realize they don't have to buy a foreclosure to get a great deal. The continuing problem of excess inventories of distressed properties tends to blunt that recovery. I'm beginning to see less anger in the market as people realize this is not just about them. Everyone has the same problem. We will have to see a slowdown in foreclosures before any significant progress will be made, but things are slowly getting better. We need to create jobs to make significant strides forward.
One very bright light is the low interest rates. It is possible to sell your home at a reduced price and invest in your dream home at an offsetting reduced price. The investment basis for both homes is parallel, and you have the ability to lock in record low interest rates. Sooner or later it's like musical chairs, so when the music stops you might not be able to find a place to sit. For the near term if you have a job and good credit score, it is an excellent time to improve your home investment goals. It also works the same for moving up or downsizing.
The average number of national home sales is between 5 and 5.5 million a year. When you consider that this year we were at about 4.5, we are not way off track. It just seems that way because in "da' boom" we were at 7.2 million. We constantly create the base for more demand with population growth, but until we fix the mortgage business, it will be sluggish growth. We need something to return our consumer confidence. We also don't need any more agents in the business to sustain new growth. I think most people are beginning to understand how difficult it is to make a living selling real estate. For those enterprising people who think it's time to get into real estate to get ready for the boom, bless your little hearts. It's not going to boom for a while, so unless you want plenty of practice or you have a ton of money, don't do it. It can be painful.
As for Pickens County, the business is pretty flat comparing the twelve month periods prior to November 2010 and 2009. Average number of homes for sale per month is up a percent, while total homes sold is down 13 percent. However, the average sale price is up over 18 percent, in spite of downward foreclosure pressure. The results are not great, but overall, the biggest improvement is the stabilization of the market. Everyone is more realistic in their real estate expectations. Because of that, it was better than the two previous years.
Now comes the question of what to expect in Pickens County for 2011. Hopefully we will all be celebrating another birthday. Otherwise, it should look quite a bit like 2010, except maybe a little better. We have to elevate confidence in our economy. In our community, we need to shop locally and hire locally. Go to www.PickensChamber.com and search the member directory for local providers when hiring someone to perform services or looking for merchandise. You will not only generate sales tax revenue to offset property taxes, you will also put a little buzz into our local economy. There is an old story, with a punch line that says you can get buried in your situation, or you can step up and shake it off. Quit complaining about the economy. Step up. Shake it off.
Comments(1)