Its simple really, the Golden age of Real Estate is passing many people by. There are opportunities now that will be gone in a few short years when we'll see both interest rates rise and property values rise as they have historically done. For example property values have already begun to rise in the markets where my team sells real estate, Sarasota County and Manatee County. Here property values have moved steadily up since we bottomed out in November of 2011. Home and condo values found their lows back then and today they are well above the bottom of the market and are climbing steadily.
In the market of the moment we have shifted from declining prices and we are far below the highs of the last housing bubble. Our Inventory is also at a low point, as homes that come to market at market price are quickly gobbled up by home buyers.
An important point to keep an eye on is that even though home prices hit bottom and are steadily rebounding, we are no where near the record highs we once were. So this is part of the reason this moment has been coined "The Golden Age of Real Estate". We can say with some certainty, home prices will likely continue to rise, based on the predictable, historical path of real estate. Historical rates show us that home prices rise on average by 3% to 5% per year. So by that measure alone we can assume that buying now, rather than later, will provide a return on our investment.
However, that isn't the only factor in proclaiming this the "Golden Age of Real Estate". Interest rates are moving higher and will continue to do so. Today they are bouncing around at historic lows, but do you know that for most of the last 40 years the average interest rate was around 8%. For a time most people thought 6% was a tremendous deal! So, imagine what will happen in the future when people look back and wish they had bought now as theyshell out so much more money later. Sadly, I see that the Golden Age of Real Estate is passing many people by. My only wish is that I can get as many people as possible to take a slice now and invest in real estate today, so they will have a well lined nest in a few years.