It must be Halloween because all of the scary news out there is about real estate. All over the place you see, read or hear about foreclosures, double dip declines in pricing, the widespread number of delinquencies that will result in defaults and even more declining house values. It is all so scary – unless – you know the truth!
Here is what the media sent out this week:
S&P Case-Shiller Index Records Widespread Declines in Home Prices Home prices across the country slipped in August, according to data release by Standard & Poor’s Tuesday. Home process decreased in 15 of the survey’s 20 metropolitan statistical areas on a month-to-month basis. Guess what happens when you read further? Only Chicago, Detroit, Las Vegas, New York and Washington D.C. posted what S&P called “marginal improvements” in home prices over July. Hey, at this point I will take “marginal improvements” over declines any day. As we have been reporting – our prices are stable in most areas, increasing in many others and showing modest declines in just a few locations. Here is what could have been their headline:
S&P/Case-Shiller 10-city composite remains up 2.6 percent from August 2009 levels. In addition, the 20-city composite is 1.7 percent above a year earlier. Have no FEAR – it’s not that bad. But why speak about the good news when you can haunt people with bad news? Here’s what they continue to say “We still fear that the continued weak demand and high supply will push process gradually lower over the next 12-18 months” said Paul Dales, U.S. economist for research firm. “The current unfavorable balance between demand and supply is certainly consistent with a sustained fall back in prices” which means if houses don’t sell prices will fall – basic economics. Here’s what I say, “If interest rates remain low, prices remain stable and consumer confidence comes back into the housing market – prices will increase further”. The National Association of Realtors just announced that 8 out of 10 people believe now is a good time to buy. If they believe it is, why aren’t they? It is because of negativity of the national media and how it is portrayed to the consumer.
So, no matter whom you believe or where the housing market is going there are opportunities for success
- Interest rates are better then phenomenal
- Prices are stable in most of our making it attractive to buy whether for owner, occupants or investors
- Speaking of investors – the rental market is strong and prices will comeback which is what long term investors are looking for when buying real estate.
- The housing market will rebound and both prices and rates will increase so we have a limited timeframe in which to take advantage of this opportunity.
Fannie Mae just announced that they are going to be looking into the foreclosure practices of many of the lenders they service which means that the release of their properties onto the market will be delayed and so will settlements. The question is – for how long. We will have to wait and see as well as note how many properties will be affected. Stay tuned for more details about Fannie Mae.
Oh! One more good piece of news came across the wire…New home sales are also up 6.6% – good news is here and will hopefully continue to come.
Think long term, plan long term and educate long term and you will be successful long term. Get it? Got it? Good!