My New Blog

I'm looking for someone smart - are you that person? Do you know someone who has been waiting for the "bottom" of the real estate market to hit?  Well - they've almost missed it.   I might sound like a broken record at this point - but as your real estate expert it is my job to provide you with the real facts.  And guess what, we have good news!

For three straight months inventory has been declining - that's what we want to hear!  We had too much supply and now its going away.

The number of annual home sales has gone up for the last two months! We also want to hear that!  That means demand is increasing!

As the following chart illustrates, indeed the market has corrected. While it is quite possible that the market will continue for a time to “over correct,” the important point to realize is that no one can ever predict or time the floor—until after the fact when opportunity has been lost. Don't let your friend miss this opportunity! Send me their name and I will explain this graph to them and how time is of the essence.

Now is the time to buy and the reasons are many:

• Real estate remains one of the most stable long-term investments with relatively modest fluctuations in annual gains.
• The extensive housing inventory in most markets is providing great choices for investors.
• Mortgage money is available to financially stable buyers and interest rates remain attractively low.
• Real estate investments tend to bring a greater annual return on investment (ROI) than stocks, gold or commodities, because they are leveraged (buyers put 20 percent down, and receive appreciation on the entire value of the property).
• Just as the late 1980’s and early 1990’s provided a massive opportunity for real estate investors to make great buys and build wealth, the current market will do the same. Smart money is already back in the market buying up the distressed properties.

Friday Blog, October 10,2008 - In light of all the recent news on Wallstreet and Main Street, I thought it might be best to start giving an actual “personal take” on what’s going on out there in the market.  After all, the so called “economic crisis” is a direct result of the housing industry.  As your real estate expert, I owe it to you to tell you what we are truly seeing out there AND what we should/would/or could do about it.

It goes without confirmation that it is now a full fledged buyer’s market.  So does that mean if you are a renter – now is the time to buy?  Does that mean if you are a current home owner that you should get out now while prices are still relatively ok?  Or does that mean you should stay right where you are – homeowner or not – and just wait until everything gets back to normal?

There is not really a simple answer to these questions.  Except maybe the first – YES, YES, YES!  If you are a renter – buy now!  Just like if you have money to invest in the stock market – invest now!  Why wouldn’t you – because you’re scared its going to go lower?  Well you may be right – but if you look at the facts based upon historical data we are reaching the bottom.  And you don’t want to wait so long that you miss the low times.   Right now the majority of buyer’s are scared and are sitting on the fence – which means that there is more inventory than ever sitting and way more motivated sellers.  Capitalize on this fact now!  Even if prices drop another 1-2% they are still on average 10% less than they were in 2007.

You know the market always rebounds, that is a given.  You also know rates currently are still very low.  You don’t know when prices will go back up and you don’t know if rates will go up.  Don’t hedge your bets – be smart and buy now if you can.

Take for instance a gorgeous home just outside the Perimeter – 15 minutes to Buckhead, Downtown, and the airport! (see virtual tour)  http://homescenes.com/_pgm/hs_IDXMain.cfm?PropertyID=49120

Last year this exact same floor plan sold for $244,500.  A year later this home is on the market for $20k less.  These are the kind of deals you don’t want to miss out on as a buyer right now.  And there are plenty of these to go around.

Take advantage of the low prices, low interest rates and $7500 tax credit and buy now-  really, I know you won't regret it.   If you call me 2-3 years from now, my bet is you will sell and make a profit.

In regards to the other questions – they are a bit harder…..and we are gathering more data and historical facts to guide you accurately on your next steps.  I will answer the questions in my next email to you.  So stay tuned .. . ..and have a great weekend!

Friday Blog, October 17, 2008 - I hope you are enjoying this Friday as another week comes to an end.  Yet another tumultuous week in the stock market, ending with interesting news from the Housing Market.  Yes, the New Housing Starts Report is in and numbers are down (surprise, surprise).  There are not too many builders wanting to start building projects when buyers are sitting on the fence.  As a result, housing starts are at an all time 17 year low – WOW.

Again, the question always goes back to “What does that mean for Main Street or You?”  In my email to you last week I discussed the reasons why you would want to buy in market like today.  This week I promised to address reasons why you may want to sell in a market like today….and after today’s report you may think there really is no reason.

Well, obviously if you are moving out of state – maybe due to a career move, maybe to move closer to family, maybe to move farther from family.  These are all “have-to” sell type scenarios.  Thankfully, The Castles By Chrissy Team can help you do just that - quickly and efficiently.

But what if you happen to fall into the category where you don’t have to move right now.  You’re thinking basically lies in the area of – it would be nice to have a shorter commute, it would be nice to have an extra bedroom, it would be nice to live in a neighborhood with lots of children, it would be nice to have a basement for your husband to hang out, etc, etc.  Should you wage your bets and try to sell now or do you wait 2-3 years and hopefully let the market rebound.  The math is really simple and when you see it laid out in front of you, you may understand why now is better than ever.

Say you live in a $250,000 home and you want to buy a $500,000 home.  The market is down 5% right now – so you can expect to sell your current home for $237,500, which then means you can expect to purchase your new home for $475,000.  This is approximately a $12,500 savings to you.

Or you decide to wait it out for 2-3 years and thankfully the market rebounds and appreciation is up 5%.  Your $250,000 home can sell for $262,500 but now you are paying $525,000 for your new home.  Essentially this move is costing you an extra $12,500 to move.

Doesn’t it make more sense to sell for a small loss and realize a large gain versus sell for a small gain and buy at a large loss?  The numbers only increase in your favor in higher price ranges.  So the answer is a big YES, YES, YES!!!  Go ahead and take a small loss – your return will be so much better!

The other big factor is we actually don’t know what is in store for us over the next 2-3 years.  We hope the market rebounds, but what if it doesn’t for more like 5-7 years?  What if interest rates start to creep up?  What if the value of your home actually falls below what your payoff is?

Again, doesn’t it make more sense to sell now while things are still relatively stable?  Your ARM hasn’t expired yet and your home value is actually still pretty good?

I definitely admit that selling now may not be the best scenario for everyone.  That is what I am here for – I am your real estate expert.  This shifting market is not new to us and we have mastered the tricks of selling in a market like this.  Please use us as a resource.  I would love to set up a consultation with you to discuss what might be your best options – free of charge!