I am recommending potential Sellers to list and sell thier homes in St. Augustine NOW.
We know what NOW is, we know what capitol gains taxes are, we know what value we can get for a propery today, but next year? It could (and probably will be) a whole new ball of wax.
For weeks, the question on nearly everyone's mind has been, “Will the U.S. Government default on its loans?” The situation created a lot of worry and a lot of fear in a lot of peoples' minds. A primary concern in our field was the impact on the already fragile real estate market. As foreclosures continue, a lot of us were left wondering whether a debt decision delay would worsen the market.
Well, the House passed a $2.4 trillion debt-ceiling increase Monday night, by a vote of 269-161. That final tally highlighted deep dissatisfaction among the rank-and-file members of both parties. And there's still plenty of uncertainty out there regarding the precarious state of the real estate market.
Don't fool yourself, or let yourself be lulled into old ways of thinking. Despite the fact that a decision was reached, there are still perilous times ahead. Do you see the parallel between the U.S. debt crisis and the real estate market? You should. The fight stemmed from a very gut-level response, with Americans telling the government that they didn't want to see more money being spent. The average person said, “Hey, we have to live within our means, now you learn to do the same.” That's why there was a fight in the first place, and that's why fewer and fewer people are able to purchase (or stay in) homes.
Look at it this way. Mortgage interest rates are, slowly but surely, inching their way up. And lending is, without question, going to tighten up nationwide. The greatest impact is most likely to be seen by folks who want to purchase properties priced between $100,000 and $150,000. Why? Because those people are the most heavily reliant on stable mortgage rates in determining the practical affordability of purchasing a home.
Of course, if your buyers have cash in hand, it is time to urge investment in real estate. Sure, things will stabilize eventually; they always do. In the meantime, increased inflation means increased rents. So the reality stands: real estate is a great investment, even now.
You've got to diversify your thinking, and better sooner than later. What impact do YOU think the debt ceiling crisis will have on the real estate market? Leave me your comments below.
Talk to you soon.
About Coach Patti Kouri:
Coach Patti, the owner of Accelerated Performance Coaching Inc., and The Real Estate Game®, strives to maintain an atmosphere of community, connection, and harmony by becoming your resource base to enhance and enrich your personal and business life. Coach Patti was voted one of the ‘Top 50 Most Influential Women In Real Estate Leadership in 2008’ by the 2008 edition of the Swanepoel Trends Report. www.CoachPatti.com and www.TheRealEstateGame.com.