What is the media saying about Real Estate?
Have we hit bottom in real estate? Real estate is usually everyone’s biggest investment. So what is happening within the market? According to Fortune magazine, it has been the lowest in seventeen years. So what does this mean?
Let’s break it down and look at it. The most important buyers in real estate are the first time buyers. They stimulate production of new homes because they usually buy existing homes. For every new home that is built, you need a new person in the market to take an existing home. The demand for housing is what pushes up prices. According to Fortune magazine, the newbies in real estate are coming back. If you want to read more about it, here is the link to it.
The downward spiral in real estate we experienced in this country really hit California the hardest. Analysts are seeing some hope, however. In May, they had an 18% jump compared to May of 2007. Yet, they are not saying it is over. Prices took a beating, plummeting 35% during the same period, according to a report from the California Association of Realtors.
What is happening in California and Florida will come back. Americans love bargains. When the price is right, people will buy again. Jonas Lee, a principal of New York based Redbrick Partners, which buys distressed properties all over the country, says he’s watching California closely, but isn’t ready to jump into the dray just yet. When they do, you know the market has hit bottom.
This is why I think they are waiting. California still has too much inventory. The Santa Barbara County area has been particularly hard hit. You can read more by going to the link here.
The point is real estate is still a good investment. It’s like the stock market. The only difference is real estate takes longer to move up and down. When you need to liquidate, it takes longer than stocks and mutual funds. You really need to remember this and keep your long-term money in real estate if this is your favorite investment.
In some areas the real estate market is slowly moving up. “In May, existing homes gained a 2% to an annual rate of nearly 5 million. The National Association of Realtors said that the number of existing homes sold during May rose 2% to a seasonally adjusted annual rate of 4.99 million units in May from a level of 4.89 million in April.
“Analysts were expecting the sales rate to increase to 4.95 million last month, according to a consensus of analysts’ estimates gathered by Briefing.com.”
To read more of the article, here is the link here!
So what happens if you really want or need to sell your home? In my other articles, I’ll talk about how to dress up your investment to get the most from your home. I am a licensed real estate broker and I would like to give you some tips. See you in my next post: Ten ways to sell your home quickly.
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Tagged with: investment • market • media • real estate • stock market
