As a full-time real estate agent in Santa Barbara, CA, I am getting tired of hearing the negatives on the housing market, tight-lending, short-sales, foreclosures, lost equity, blah, blah, blah . . . .
Isn't it time we start looking to the future and see the opportunity that sits in front of many of us? I agree, that unemployment, the debt-crisis and economic stuggles of our local and federal governments weigh heavily on our nation and populous. Being a realtor, this has weighed heavily on my business.
What sits in front of us are historic times. For buyers that have the means and qualifications, what are you waiting for? Rates are at historic lows. Prices are at 10 year lows. Inventory is down from the insane highs of 2006 and 2007, but still considered healthy. I know many of you are waiting for the bottom . . . but that must balanced with rates, yes? Just this week, rates ticked up .375% here locally. Still at historic lows, but an upward trend is now inevitable. What about prices? They may dip a bit more, but the bottom will only be seen in hindsight, and once that is known, you basically missed it. And the benefits gained from waiting, may be balanced out by the increase in rates.
For sellers, the decrease in inventory, coupled with low rates and low prices should equate to generating demand as explained by basic economics. Obviously, prices are down from the highs of 2006 and 2007, but priced correctly, the property will sell. Sure, lending is tight, but banks are slowly loosening the reigns and this should begin to translate. Let's not forget the interest rates of the 1980's that pushed north of 15%!
In sum, Real Estate has always been a great long-term investment and still is! The gain seen in Santa Barbara through the last decade, 2000-2010, was 48%! This stat was taken from the Santa Barbara Multiple Listing Service, based on median price. That takes into account the over 30% drop we saw at the end of the decade. Comparatively, the 90's saw a 53% gain.
This blog post is more about throwing something positive out there, which is a scarcity these days. I know times are tough, but when these tough times are seen in hindsight - that is the time when we will see that great opportunity existed as well.
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