What people find most astonishing to know is that they are not too late to make a great purchase in today’s market. In the 1960’s people thought they were too late when homes rose from $34,000 to $36,000. Then in the period from 1973-1982 California Association of Realtors reported real estate rose 367%.Since the market has shifted to a seller’s market, isn’t the real question, will I take advantage of today’s low rates and the property that is available today or miss out totally? Smart folks are asking what is the price in five years not what am I paying today. During other cycles people who purchased a home for their family because they needed a place to live still have a place to live.
Those who purchased thinking about equity always increasing are those who were hurt by the market and if they purchased with an adjustable rate loan they may have lost the property without a loan modification. With FMNA making deals with investors for large blocks of houses that leaves less inventory for those who want to own their family home. This lack of supply and high demand naturally causes prices to rise. Now that inventory is lower in our area due to the fast paced market we are still selling property off our all time highs from the end of 2006. Residential real estate is still on sale at a discount, rates are at all time lows and yet some people will miss the opportunity entirely. You have to ask yourself what prices will be in five years. People always want to buy the most house possible, the key word here is possible and what better time to try than now.
Where do you park your money? To hedge against inflation smart money has ran to hard assets like real estate and precious metals. With the government having no ceiling on their printing of money and supply increasing daily, what happens to inflation? We know it’s not going down so it must be going up and up rapidly.
So if anyone says to you, “We are too late” have them call me and I will be happy to ask them about their goal and share with them what I see.
Another Good Month For Housing Prices
I was talking to a friend the other day about how rapidly sales in our local real estate market are happening. We have been in a seller’s market for the past four months and the indicators show that we may stay there for awhile.
There were record quarterly gains across the country with prices improving month-over-month in all 20 cities tracked by the Case-Shiller Index reported by Standard and Poor. Home prices rose 6.9 percent in the second quarter, the strongest quarter-over-quarter gain since the quarterly index began in 1987. Standard and Poor also reported in that in June, the monthly 10- and 20-city indexes rose 2.2 percent and 2.3 percent, respectively.
Many people believe there is a macro trend happening in our real estate market. Since construction of new homes has been down across the country and the demand for housing still strong, prices must rise over time. This trend is something that we will all share in as home owners’ as demand increases.
Broker and Past President of the Santa Barbara Association of Realtors and Multiple Listing Service