THE MARKET COULD NOT BE BETTER IN MY BOOK
By Lee Davies
Sales are not skyrocketing, prices are not shooting through the roof, and people are not getting rich . . . hallelujah!
That may not sound like music to everyone, especially those of you who were just getting your “adult life footing” in the early 2000s with your career and your first home. The economy as you know it consisted of the “dot com” boom, the real estate boom, and a luxurious dose of the American dream! The 35 hour work week, combined with your three plasma screens, a Range Rover, and the club membership, were all the result of your incredible talent. You were proud. The only people who questioned your moves were your parents, who asked questions like, “Why do you need all that?” or “Don’t forget to put away some money for a rainy day”. And once again, your parents were smarter than you realized, as they were old enough to remember owning a home for twenty years only to see it appreciate 30% over that time.
Then came the news, our 10-20% of annual real estate appreciation was fabricated as a result of Wall Street and the liberal lending practices between 2002 and 2008. Yet for some of you, it was the only real estate market you have ever known.
Here is the good news, we have recovered! Our new market is the same one your parents experienced when you were in grade school. Slow methodical growth and appreciation combined with a lot of work for a very modest return. Your parents know all about it. There are not a bunch of highs or lows, but rather a market you can count on.
In our book, the market today is fantastically normal; and, we at Lee Davies Real Estate love it. It is like 1988 again, but better! In 1988 buyers had great inventory to choose from and the market was driven by people’s desire to be a homeowner, not speculation. Sellers had to work hard to position their homes to capture the buyer’s eye and real estate brokers had to work hard to make a sale by showing buyers 20, 30 and sometimes 50 homes before they made a selection. These were the good old days. An honest dollar for an honest day’s work. But it is so, so much better today. Why? Interest rates are at 5% rather than 11%. Yes, in 1988, if you could lock in a loan for 10% you were the luckiest buyer in town.
Today’s new balanced market is ideal and essentially has given us a free market system. Yes, supply still probably outweighs demand; however, everything is tracking in the right direction that will ultimately take us back to predictability, stability, and eventually gradual appreciation. This brings us back to the original idea of the American dream which is to build wealth over time by having a stable home, working hard, living within your means, and saving.
So today, if you are looking to make a change, it is a great time only if you have the need to buy up, downsize, or have a true need.
Buyers are out there!
Sellers are out there!
Low rates are out there!
All you need to do is find a real estate broker like you, educated, assertive, innovative, and who knows how to work. Avoid the salesman and find the market expert who is strategic, has patience, and who thrives on working.