It's that time of a Real Estate Cycle that I'm willing to step out on a limb and tell everyone it's time to buy. As we all know real estate markets just like other commodity markets, go up and down. Timing is everything. Traditionally, Real Estate is a long term investment. It still is. Congress Raises Conforming Loan Limit Congress passed the economic stimulus package which temporarily raises the conforming loan limit to $729,750 from $417,000. This should loosen up credit and give a boost to the real estate market, especially in high-priced areas. It offers some of the same advantages and disadvantages as the bond, stock and commodities markets. One disadvantage is that it is not as liquid as some of the aforementioned investments. As many area sellers are finding out right now. That said, the advantages far outweigh the liquidity issue. For instance, among other things, it offers: income, amortization, appreciation, depreciation, tax benefits, leverage, tangibility, pride of ownership and shelter to you or to your tenants.
In the past few years I did work with people who just wanted to flip homes as that was the thing to do to take advantage of that market (and they typically made QUICK money). Today is not the 'flipping' market, because as we know the markets go up and they go down. As the records show, every 10 year period in history properties have gone up.
Right now the market is perfect for buyers as the large amount of short sales are fueling a buyers market. The other factor helping is the low interest rates. this is why I'm going out on a limb (hey but don't sue me) and telling my clients its time to get going. The clever investors are. Another sign of a Buyers Market is that the majority of buyers are not buying. When the majority do buy, it will be the time to hold what you have and/ or sell to the frenzied buyer - cycle.
We have had several clients now pick up wonderful pricing on homes that are worth thousands of dollars less than what even is owed on the homes. And we see deals all over the Delaware Valley. Many investors from outside the area...I am currently working with several Europeans and out of Staters.
Rates are fantastic, we can now get approved clients loans locked for 30 years with rates in the 5-6% range. The combination of some adjusted values and the fantastic lowering of rates, align the market as a BUY.
So that is why I'm sending out this message now, as I don't want anyone to call me in a year or two and say "we should have bought back when everything was so low". Those who do not remember history are doomed to repeat it. Wow, would I love to be a buyer in the previous markets!!!! But, I am a Buyer in this market!! ·
"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline." (Time, December 1, 1947) ·
"Houses cost too much for the mass market. Today's average price is around $8,000-out of reach for two-thirds of all buyers." (Science Digest, April, 1948) ·
"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs $28,000." (Business Week, September 4, 1969) ·
"The era of easy profits in real estate may be drawing to a close." (Money, January, 1981) ·
"The golden-age of risk-free run-ups in home prices is gone." (Money, March 1985) ·
"Most economists agree... [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980s." (Money, 1986) ·
"Financial planners agree that houses will continue to be a poor investment." (Kiplinger's Personal Financial Magazine, November1993) ·
Today: headline: "Real Estate is in for a Meltdown" (Business Week Feb. 2008)
Don't be the one to look back in the coming years and regret missing this opportunity! We are here to help, if you need research to help you become informed about our current market stats, please call me as we have access to lots of market data.
I appreciate that now is not the time for EVERY person. There are extenuating factors in some of our lives that prohibit an investment at this time. I understand.
But if you are: · able to BUY · the market is ready, · I am willing to help you make an informed decision
Please call me for a confidential discussion on your Real Estate needs.
Re/Max Services ph. 215-641-2504
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