Who Knew Bad News Could Be So Good?

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119
https://activerain.com/droplet/cT2

If you read the financial papers, websites and blogs each week you may be
 tempted to grab a prosac and curl up in a fetal position.  Some of the headlines this week read:

Fed Chairman Points to Distress as Holding Housing Sector Back 

Industry's Past Due Mortgages = 6,350,000

Forecast: Real estate recovery won't arrive till 2013 or beyond

Real estate sales stumble again in May

The truth is, this is probably the most exciting real estate market in the past three decades.  During the mid-2000s many average Americans were priced out of the housing market.  Home prices shot up so fast that many home buyers scrambled to grab a piece of the American dream that soon turned into Nightmare on Elm St, Main St, First St, etc.

Now, a lot of disenfranchised buyers are ready to buy and the conditions couldn't be better.  Another headline this week said, "Long Term Interest Rates at 'Ultra Low Levels.'" For the sidelined buyer, interest rates are better than when they were forced out of the market.  But, that's not the only good news for these buyers.  Because of the high numbers of foreclosures and short sales home prices are at new lows.  That sidelined buyer is now in a position to control the current market.  

He has money.  He didn't get his credit destroyed by overbuying a house that ultimately went into foreclosure.  He has funds for a good down payment, and he's ready to take advantage of the flip in the market


So, Realtors, put down that Prozac bottle, get up and brush your teeth, put on clean clothes because this market is going to turn around and you need to be out there when it does.  Get your Rolodex out, pick up that phone and start making calls.  That person you felt sorry for in 2005 might just be the guy that pulls this economy out of recession.  He's no longer in the back seat.  He's your new driver!

 

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Topic:
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Location:
Virginia Frederick County Winchester
Groups:
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Christianity and Real Estate
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Tags:
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mike cooper
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Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Too funny, Patricia.  I think??    Thanks for commenting. 

Jun 24, 2011 05:57 AM #8
Rainer
259,548
Ellie Shorb
Compass Real Estate - Chevy Chase, MD
Realtor DC, MD & VA Luxury Home Expert

Where did you get the photo of the Prozak? Your medicine cabinet? LOL It is really a good time for certain buyers, I agree. I have a few cash buyers with so  many choices before them it seems to have them a bit flummoxed - a couple want to still lowball even in this market. We agents have to educate buyers and sellers more than ever before.

Jun 24, 2011 09:54 AM #9
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

You're on to me Ellie.  You are so right.  I see people trying to lowball all the time.  If prices get any lower sellers will have to pay to get you to take their homes!  Mercy!!  Hey, thanks for posting, and don't let my prozac secret out!!!

Jun 24, 2011 09:58 AM #10
Rainmaker
357,132
Dan Pittsenbarger
Keller Williams - Bellingham, WA
Improving Conditions

Other than the fact that there's so much "bad" news out there shaping the thoughts of millions/billions of people and public's confidence is at least a key if not "the" key to how the economy and the various "markets" perform - it's hard to believe that real estate is not totally on fire right now. Never before have we had both of the biggest pieces of the game in a buyer's favor - historically low rates AND low prices (in some areas one may have qualify "low" with "relatively low"). In the past, there have been many times when one could get one or the other (low rates but rapidly increasing prices - or decent prices but high rates). But to get both at the same time - Wow!

It's doubtful that once this phase is over that buyer's will have the opportunity again.

Jun 24, 2011 01:56 PM #11
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Dan you are so right.  What a golden opportunity for a buyer.  It really is a perfect storm.  Thanks for commenting!!

Jun 24, 2011 02:03 PM #12
Ambassador
3,666,644
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Hey, Mike!  I included this post in Last Week's Favorites.

Jun 26, 2011 02:55 AM #13
Rainmaker
571,518
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Mike,  Terrific analysis of our market.  While others see only doom and gloom you can see this as an opportunity market !  Well done !

Jun 26, 2011 05:12 AM #14
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Mike, thanks for posting the links. Over 6 million mortgages in default! I was glad to see California is not at the top of the list. We have years yet to recover. It is a great time to buy, especially with all cash.

Jun 26, 2011 05:15 AM #15
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Bill.  It really is a great time for buyers. 

 

Absolutely, Pamela.  I know we realtors always say it's a great time to buy, but really is a great time to buy!

Jun 26, 2011 05:17 AM #16
Rainmaker
400,140
Navona Hart
Real Living Cornerstone - Farmville, VA
Selling the Best Properties in CentralVirginia

I love this post.  We are on the same wave length....shout it from the rooftops people let's get this market moving!

Jun 26, 2011 07:14 AM #17
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Amen, Navona!  I'm with you!

Jun 26, 2011 07:17 AM #18
Rainmaker
258,069
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

Mike, great post. It really is all about perspective, isn't it? Whenever I hear people talking about the market, I think, "But it can't be bad for EVERYONE. It must be good for somebody!" There are definitely opportunities in this market and attitude and perspective makes an amazing difference in our outcome.

Jun 26, 2011 09:53 AM #19
Rainmaker
809,418
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Mike:

We should all look on this market as a positive thing.  Keep thinking positively and your buyers will feel the same.  Thanks for sharing.

Jun 26, 2011 10:27 AM #20
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Yes it is Shannon.  I can't think of a better time to buy a high end home at a low end price.  If a buyer has good credit or cash he can call the shots.  Thanks for stopping by!

Thanks, Evelyn.  I appreciate your comments!!

Jun 26, 2011 10:33 AM #21
Rainer
417,909
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Mike, 

I agree, we are seeing fabulous positive trending in Buckhead, with all kinds of folks out looking to buy.  I am busy, selling & CLOSING!

All the best, Michelle

Jun 26, 2011 01:04 PM #22
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Awesome, Michelle.  That's good to hear.  Thanks for commenting!

Jun 26, 2011 01:08 PM #23
Rainmaker
671,544
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

LOL, Prozak? Whatever happened to Valium? Funny, when the media tells buyers it is the absolute worst time to buy it is usually the best time to buy. Smart buyers buy when nobody else will. Have a great week!

Jun 27, 2011 07:22 AM #24
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Isn't that the truth, Cynthia.  That's a good barameter to pay attention to isn't it?

Jun 27, 2011 09:46 AM #25
Rainmaker
343,809
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Thanks Mike: you and Cynthia and others who took the time to comment are right on.    Today I took some first time buyers out home shopping, and we found 3 homes they could comfortably afford on a math teacher's salary.  I also have a young couple who teach music and dance in escrow on their first home.

Despite the negative headlines, the past year or so marks the first time in many years that it makes sense for young people to buy in California, because they can lock in ultra low interest rates and depressed home prices simultaneously.    Meanwhile,  rents are going up!

Jun 27, 2011 04:20 PM #26
Rainmaker
1,459,029
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

That's exciting, M.C.  Congratulations on your success!!

Jun 27, 2011 10:59 PM #27
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