Housing Market Fluctuation is Your Friend: Sell Home Now, Don't Wait!

By
Real Estate Agent with Rich Life Real Estate Team GA#242237

Real Estate Market Fluctuation Is Now Your Friend

 

Most home owners were aghast when housing values plummetted after the historic financial crash a few years back! Investors, however, capitalized and created great wealth, and now that home values have re-captured 40% of the peak values, investors have gone from buy and hold to doing flipping, but no longer have the opportunities with the great returns of a year or two ago.  Bad for them, GOOD for YOU!  Home owners, who have been sitting out for the last 5 years because their homes were under water, may now be able to sell!  Let me explain why Real Estate Market Fluctuation is now your friend.

If you have been waiting to upgrade to a larger home, or wanted to downsize but would be coming to the closing table out of pocket, you may now be able to move to where you wanted to be! If low interest rates have combined with foreclure pricing to make the pride of ownership go down in your neighborhood due to lack of covenants, or if you aren't happy with schools in your area or would like to move closer to work with high gas prices, now may be the time to sell. Housing inventories are way down and homes are flying off the market at much higher prices!  If you were an investor but can't get inventory, you can now likely buy and flip to motivated buyers while inventory is so low!

Last week I was in a training with Gary Keller (Founder of Keller Williams), who said that not only have we regained 40% of our values, but there is currently only 2 months of supply in the move up category ($200,000 and up for most markets), typically that supply is at over 12 months.  It's a sellers market, which is starting to drive new construction in many markets!  But as things are cyclical, new housing starts may drop the currently higher pricing on re-sales, so for sellers, it may be time to sell before they face new home construction competition! While you might not have regained your entire value, the home you are moving to hasn't either, so it's a fair trade off.  Gary Keller did say that with current trends, we should be back to the peak values in about 7 years if you would like to stay in your current home.

The "Oracle of Omaha" Warren Buffett seems to do everything right, owner of THE most respected fund in the world, Berkshire Hathaway, Mr. Buffett's opinions on anything related to financial or real estate markets tends to be listned to with great care!  Markets move at his word, and you can't afford not to pay cloe attention to what he does.  When he said the next major boom was in single family residential housing, funds formed like crazy and started buying up all of the foreclosure inventory around the United States.  Markets like Atlanta, Phoenix, Miami, Orlando, Tampa, Las Vegas, and Los Angeles immediately skyrocketted in value as major fund managers rallied around distressed single family home inventory.

Here is what Buffett said:

"Look at Market Fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."  - Warren Buffett

Here is what Buffett did:

He bought thousands of homes himself, but then he purchased Prudential Realty across the United States, which will change it's name to Berkshire Hathaway in December!  Do you think Mr. Buffett is following his own advice?  Also, do you think he believes real estate will or has rebounded?  I would say so!  

Warren also followed some other excellent avice, "Buy Low, Sell High."  Understanding where the market has been, where it is and trying to grasp where it is going is the most imprtant thing in real estate.  I'm sure profits have been down for Prudential compared to past years, and Buffett believes that they will go up and sales will resume.  When that happens his purchase of Prudential Realty will look like a genious move!

If you would like to find out where your home value is, and what market conditions might allow you to sell for, while still allowing you to buy a new home at still reduced prices, please call me at 404-718-9126!  We serve Northeast Georgia including Buford, Flowery Branch, Sugar Hill, Suwanee, Braselton, Dacula, Auburn, Lawrenceville, Alpharetta, Cumming, Johns Creek.

Jared Garfield

Rich Life Real Estate Team - Keller Williams

404-718-9126

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