Remember the song, “Under Pressure” sung by everyone from Queen to David Bowie to American Idol contestants? Well, that is what is going on here in the Brentwood Real Estate market. I earned my real estate license in 2005 and plunged into the cesspool of real estate full force in April 2007. I left a nice paying job, although they had recently moved me so that I was making about half what I had made the year before. There were copious layoffs at my company and even though I had been one of the sales superstars of the company for all of 2006, they had a different idea of my future. Their motto was, “What have you done for me lately?” So, with my spouse already in real estate full time and a book full of business, I took the plunge. It was great being my own boss running a real estate business in one of the most highly desired areas in the South. Then the bottom fell out. We still managed to do okay for the rest of 2007 and struggled through the ups and downs of 2008. What a wild ride! Then something peculiar happened this past winter when we least expected it. Typically in any given winter, we have November and December off but our business really began in November. Was it election year jitters that had people sitting on the fence until after the election or did the mortgage rates really seem that attractive to buyers. One thing is for sure, we were not going to complain. We are currently working with about 10 buyers and investors and about 15 sellers. There is only so much pressure Brentwood real estate can take. I predict that we are on the verge of a mini real estate boom before the big one hits again either this year or next year. It is clear by the chart below that although the number of sales per quarter is way down this year and almost down 50% over a two year period, the median home price has remained steady. I used to be a stock broker so this chart speaks to me differently than most people. I see a lot of underlying pressure with rates at near all time lows and median prices staying steady. All we are waiting on is a stimulus from the Obama Administration.
If it happens you heard it here first! Lawrence Yun, the Chief Economist for the National Association of Realtors (NAR) said, “There is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery” (Rismedia.com, 2009).