Ah, my first blog post (on AR anyway).
While the news websites I visit almost daily seem to run a lot of headlines about the Real Estate woes - "Housing Market Crash" as they seem to want to sensationalize it - I see the next year or two as an incredible opportunity.
For those who bought more home than they could afford, or those who were financed with adjustable rate mortgages hoping that they could re-fi when the rate was set to go up, this is a rough time. There are a record number of foreclosures in many markets, and I know the number is high here in the Phoenix area as well.
For anyone looking to buy a home, however, you could not ask for a better scenario!
Interest rates are at almost historic lows, prices have dipped to a level that most middle class families can afford, and the supply of homes far exceeds demand right now meaning sellers are pressured to do whatever it takes to make the sale.
It seems the only thing keeping the market from a very quick turn-around is the fear of first time buyers jumping into a "shaken market". Sure, loans are harder to get for those with poor credit, but there are still more than enough programs available to get most people financed. I don't think it's the lack of available financing that's keeping buyer's sidelined - it's simple human nature. When the stock market starts a downward trend, the reaction of most people is to sell. When the market is reaching record high's, the reaction is to buy - after all, look how good it's going! Human nature seems to trump common sense which tells us to "buy low, sell high". Even those who understand that concept seem to wait for signs of an upward trend before buying in.
I see the coming year as one of incredible opportunity for people who currently rent, who aren't afraid to make a better life for themselves as a home owner. It's also a great opportunity for those of us who specialize in helping first time buyers.
While the headlines of doom and gloom are sure to persist, those who are not afraid to take advantage of a great opportunity are going to find themselves in a real good place. I'm excited about what the next year or two will hold!