The successful brokers and sales associates are talking about the strengths that exist in the market — not the negative media hype. Below are positive angles that appeared recently in the media and underscore why it is a good time to buy real estate.Recent Quotes about the Positive Signs in the Real Estate Market:
Mortgage Applications Up & Rates Down
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Jan. 11 surged 28.4% to 906.4, its highest since the week ended April 2, 2004. “When consumers see an opportunity, no matter how pessimistic they might be, they take it. It will improve the underlying state of the industry and the longer rates stay down, the more people will take advantage of the opportunity, so that is a good thing.”-- Douglas Duncan, chief economist at the Mortgage Bankers Association, “Tumbling Rates Boost Mortgage Demand to Four-Year High,” USA Today, Jan. 16, 2008. Mortgage rates have dropped to their lowest levels since the summer of 2005, as more people become convinced that the economy is in a housing-led slowdown. The benchmark 30-year fixed-rate mortgage fell to 5.75 percent, according to the Bankrate.com national survey of large lenders. One year ago, the mortgage index was 6.26 percent; four weeks ago, it was 6.21 percent. The benchmark 30-year rate hasn't been lower than this sinceJuly 6, 2005, when it was 5.7 percent.-- “Mortgage Rates Fall to mid-2005 Level,” by Holden Lewis, Bankrate.com, Jan. 16, 2008.
NAR Launches Consumer Web Site
The National Association of Realtors is doing something atypical -- directly reaching out to consumers with little-known facts about housing. NAR's new website – http://www.housingmarketfacts.com/ -- is designed to give homebuyers and sellers information that illustrates the value of real estate as a long-term investment.
For the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years.
Home prices typically beat inflation by one or two percentage points.
Housing sales in 2007 are expected to be the fifth-best on record.
-- “Realty Viewpoint: NAR Battles Bad Press With Housing Facts For Consumers,” by Blanche Evans, Realty Times, Jan. 17, 2008.
International Buyers Looking for Bargains in the U.S. Housing Market
While the growth of international activity in the U.S. market has been well-documented, the recent National Association of Realtors study provided the first specific data that the phenomenon goes far beyond bargain-hunting Brits buying Florida condos. According to the data, Arizona and its desert golf courses accounted for 6 percent of international sales, compared with only 4 percent in New York, followed closely by Colorado with 3 percent. While 33 percent of the buyers were from Europe, 24 percent came from Asia and 16 percent were from Latin America. “Prices are going to become more attractive, both because of the dollar and falling housing prices.”-- Pat Newport, an economist with Global Insight, “International Buyers Head for the Texas Coast,” by Kevin Brass, The New York Times (registration required), Jan. 10, 2008.
Regional Update:Good News from Several Markets Around the Nation
Florida:
“Basic fundamentals driving Florida's real estate market, which are historically low interest rates, stabilizing prices and reductions in inventory, indicate a positive environment for a recovery.”
“Today, more customers are interested in purchasing a home as a long-term investment, as real estate continues to be an outstanding long-term wealth generator. According to the Florida Association of Realtors, the statewide median sales price for single-family homes has increased by 52.5 percent over the past five years, as of November 2007.”
“While real estate is a commodity, it cannot be traded like a stock.I think overzealous investors and speculators found that out the hard way, and now, we are returning to a more traditional market.”
“The number of foreclosed properties may have increased significantly throughout the state, the total is less than 5 percent of all residential properties.”
-- Clark W. Toole III, president and CEO of Sarasota-based Coldwell Banker Residential Real Estate, “To Top Broker, Florida has Strong Real Estate Future,” Herald Tribune, Jan. 14, 2008.
Baltimore:An address in a trendy neighborhood will no longer guarantee a fast sale, experts say. Rather, fast sellers in a slow market have several common denominators: They're priced better than comparable listings, they show like model homes and they have a full force of marketing, such as enticing Internet photos, behind them. “You can't speculate on your price right now. You need to price it aggressively from the beginning or you're going to sit on the market.”-- Janice Mattson, a Baltimore County listing agent, “A Few Houses Still Sell in Days,” by Lorraine Mirabella, Baltimore Sun, Jan. 16, 2008.
Dallas:A new comparison of major U.S. housing markets shows that the Dallas area still has one of the lowest average sales times in the country. Additionally, Dallas was one of only two cities – along with Phoenix – that had an increase in the median price of homes listed for sale.-- “Report: Dallas has 2nd Shortest Home Sales Time,” by Steve Brown, Dallas Morning-News, Jan. 10, 2008. Dothan, AL:Many of the same factors that dampened the national housing market in 2007 are affecting Dothan, although the Dothan market is typically insulated from the wild swings in other areas of the country. Massive increases and decreases in home values tend to happen when buyers snap up homes in places where they expect demand to be the highest, such as the beach or trendy places like Las Vegas. “There’s not a lot of speculation going on in this market.”-- Charles Woodall, managing broker at Century 21 Key Realty, “Realtor Says Dothan in a Buyer's Market,” by Lance Griffin, Dothan Eagle,Jan. 10, 2008.
Jose R. Cordova
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4 comments:
This will definitely help a lot of promoters and home buyers in perspective. It's nice to know that there are things that people can still count on to make things easier or lighter in the pocket.
This was a lot of information you crammed into this space, do you still feel the smae way now? Do you think the Florida Market has any other unique attributes others may have missed?
This is an interesting article. Im not sure how I came across a Real Estate article, but interesting read.
Interesting read, not sure how I came across an real estate article, but interesting read.
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