Sanity Check time again. It is NOT as bad as the press makes it seem.
I have noticed that the closer we get to the election, the worse the housing market reports seem to get. I can’t prove it but I think we have a situation of making it seem as bad as we possibly can. I have been looking at numbers again and this is what I see.
1. There are 129,871,000 housing units in the United States. That data comes from the US Census Bureau and is the current information for second quarter of 2008. Seems like a good source and reasonably current, doesn’t it?
2. According to RealtyTrac the number of foreclosures in July rose to 272,171 ( about 100,000 over last year at this time). They use words like ‘surge’, ‘sharp rise’, etc to describe an increase to about 2% (3.2 million homes) of all homes in the United States. Most of those foreclosures are in 4 states. California, Florida, Ohio and Michigan with Nevada getting the 5th place.
If you live in one of those places then I have to say you are not having a good time and when the press talks about a recovery in 2009 those are the places they are talking about.
If you live in Georgia and especially Atlanta, the story is different. Interest rates are about 6.5% and housing prices are perhaps as low as they are going to get and this is the time to buy. There are 56,530 active listings today in the FMLS so inventory has fallen some but we are still in a heavy buyers market and with interest rates this low it is a perfect time.
Even if you have to sell first it can be a good time to buy. Just be willing to give up a little on your sale, have the property in great condition and you can move up into a great house and get a good deal. You will gain in equity position so don’t be afraid of the market here.
If you are thinking of waiting to see if we are at the bottom, consider that interest rates are on the rise a little bit and a half percent increase can wipe out the savings of a $10,000 price decrease on a $200,000 house. I would rather see you pay a little more at a lower rate to get the lower payment. After all, if you are not paying cash then you are buying a payment and the lower, the better and when the market recovers you will still be in a great position in a few years.
Enough for now. I just wanted to remind and encourage you that buyers are going to do well in this market if you are ready and if your credit is ok. It does not have to be perfect either. Call me if I can help.
We are planning a buyers education meeting so we can answer any questions you might have. If that interests you then email me and let me know. We’ll get you on the invitation list. Even if you have a home and just want to know more about the lending process and how things work today after all the changes, let me know.
It’s a Good Life!!
Jerry Robertson