Well, it's been a while, but I though I would chime in with my thoughts about what's going on in the Real Estate world of late. I think that we're making headway in the NW metro of Minneapolis. I've seen pending sales up in my hometown of St. Michael. And although sale prices as a whole are down, I think we're seeing some of the foreclosure inventory get cleared off the market. I'm also not seeing as many swinging signs in the neighborhood. I think this has less to do with increased sales, and more to do with people understanding that selling right now should not be taken lightly. So where's the silver lining? Here's where I see the positives:
1. If you have thought about investing, and have a good reserve of cash, now is the time! With the stock market still very unpredictable, real estate can prove to be a good long term investment to have in your portfolio. It's not easy. Lenders are requiring up to 30% down on investment financing. But there are endless deals if you know where to look.
2. Housing has not been this affordable for a long long long long time. With interest rates that continue to go lower, and banks looking to clear inventories, you can get a home well under market value. You need to work with someone that knows how to weed through the muck. FHA will lend on more now than you would think, but you still want to stay out of a money pit. THere are also new tax breaks compliments of the 2009 stimulus package!
3. Fingers crossed, the new stimulus package will stop a new flood of foreclosures from coming on in 2009. We'll have to wait and see on this one. But if it does what it's suppose to do, this should put a bottom in house pricing. This will mean that people can once again hope to build equity and wealth through home ownership. The jury is out!
All we can do is remain positive. The past is the past, and we can't go back. If you want to know how best to plan your future, look to a professional. That would be me!
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