It is very well documented that the state of the American Economy is not good. The Real Estate market is dominated by rising numbers of foreclosures and plummeting home values. So I am sure you are asking “Why should I buy today?” “The prices will continue to fall and what is a good buy today will be even better tomorrow.” While I can understand your nervousness of buying in today’s market and the belief that prices will continue to fall I do challenge that there are reasons to step up to the plate and buy today.
I am a firm believer in the phrase that “It is always Darkest just before the Dawn.” I believe we are very close to that point in today’s real estate market. The Real Estate market has been on a downward spiral for nearly 3 years and it is my belief that with the actions that the government is taking with bailing out the banks and pushing through the stimulus package the market will begin to turn around.Our company is a perfect example. While putting together our budget for 2009 John, Lynn, Justin and I took the approach that this could be a real tough year and we tried to find ways to cut costs and survive. Much to our surprise, January was a very active month; even though historically January is one of the slower months in the year. For the month of January inquiries and showings through our office were up and we had more contracts then expected.
Today I have spoken to many prospects about buying and they are all beginning to agree that there are some real good deals to be had. Think about it, today I can go out and purchase a house for less than $150,000 that only two years ago sold for $212,000; that is a GREAT buyers market. I believe that this market will experience a slow turn around and those buyers that took the risk and bought a house today will be able to sell it just a few years from now and realize a real good profit. Also consider that with Interest rates at historical lows; the homes you are getting a great buy on today are even better with the lower interest rates.
It was Robert Kiyosaki, author of Rich Dad Poor Dad, who said “during tough economic periods there was usually a great transfer of wealth.” This is definitely one of those periods and in Real Estate the winners will be the ones that are able to buy today and sell tomorrow.
