NOW IS THE TIME TO BUY

By
Real Estate Agent with Exit 1st Realty

Lots of factors contribute to the overall health of the real estate market. Some important elements are the economy, unemployment, inflation, interest rates and in the stock market. It would be nice to be an expert in all these areas, but even the experts have trouble predicting the future of the real estate market. Understanding and predicting trends in the market are the keys to investing in anything especially real estate. We all know the expression what goes up must come down. Well the laws of gravity and the real estate market mirror each other in that regard. Some of the articles we read about in the late 80’s and early 90’s were very similar to the ones we’re reading about today. They all talk about a down market where sales and house prices have fallen. Then look what happened. The market started to go up. I bought my first house in 1997 for 78 k in Brockton. Interest rates were around 7.5% for a 30 year fixed rate mortgage. In 2005 Campanellis on my street were selling for around 215k. I remember reading an article in the Boston Globe real estate section. It said that Brockton was in the top 3 of all locales [towns, cities] in the state for % increase in value of homes. For me it translated into a 275% increase in the value of my home in 10 short years. Where else can you invest your money and get a 275% return in 10 years. “Remember gravity”. Well sure enough house prices started to fall. Now in 2011 my house has come down from the clouds and is currently valued at 175k. Now here’s the good news. I believe the market is close to the bottom. It may go down a little more, but certainly it will start going up in the next year or two like it always does. The next ten years will bring modest increases in home values. I highly doubt we’ll see 275% gains like we did between 96 and 2006, but who knows. Now’s the time to buy. Even if the market goes down another 10% interest rates will certainly start going up. Also, you can offer a little less for the house of your dreams. You may even be able to get it at a price 10% below CMV. Interest rates are incredibly low now. House prices are down. It’s like the perfect storm for home buyers and investors So don’t be afraid to get in the water and put your sail up the wind is starting to blow. I have my finger on the pulse of the real estate market so give me a call or any of our fine agents and stay on the right side of gravity. But, don’t forget what Sir Isaac Newton said about gravity.

Comments (2)

Jerry Cecil
Bloomtree Realty - Prescott, AZ

This is exactly what I am telling my buyers

Feb 08, 2011 08:03 AM
Letitia Stevenson
BHHS Fox & Roach | www.DelawareValleyRE.com - Greenville, DE
Listing Agent DE/PA/MD, Digital Marketer & Coach

Paul, Welcome to the Rain! Active Rain is a great place to share your knowledge, expertise and thoughts, as well as network and learn so much from the vast pool of talent already onboard.

Welcome Aboard and Much Success!

Feb 10, 2011 06:41 AM