Smart people…
There are a lot of smart people in the world. Some are smart just once. Some get to do it over and over. Some are smart what seems like all the time. I try to listen to smart people in the hopes I will do some smarter things.
One person I have listened to is Warren Buffett. He’s 80 years old, rich and runs a very successful company. Buffett has bet that we are going to see growth and expansion in the housing market and we’ll see it in the next year. He is putting his money where his mouth is too with expansion in the construction business. You can read the article here.
Does this mean it’s over? Has the bottom been found? I’m not sure we can say that but it is clear we are seeing a change. Foreclosures and notices of default are both down but we are not sure exactly why. A lot of that data is kept behind closed doors at the lenders and the loan servicers but it’s interesting when you think about it. One theory is that the home prices have stabilized and that has softened the blow to consumers trying to pay their mortgages. You can read the whole article here. This article is about California in particular but trends start on the coasts and move to the middle of the country.
It is clear to me that things have picked up a lot. I am the compliance broker in our office and that job involves seeing every contract that comes through our office. We are consistently No 1 or No 2 in Gwinnett County for Keller Williams Realty Atlanta Partners and we are seeing an increase in new construction contracts, resale contracts and a decline in foreclosure and short sale contracts. The distressed sales are still high but they seem to be falling and that should help stabilize the market prices.
The market is moving quickly if the houses are in good condition and are priced to the market. If a house sits for a long time and it seems to be in a good location and in good condition the problem is either competition or pricing. What this means for a seller is you have to be on the mark with your price or it will take a while to sell and involve lowering the price. As the buyer it means you have to be aggressive if you find a house you like that is priced right and in good shape. The days of big discounts off the list price may be coming to an end as sellers get realistic and price to the market.
If you have questions or want to talk about the market just let me know. If there is anything else I can do for you please just let me know what you need. Business or beyond just let me know how I can help.
Thanks for listening,
Jerry Robertson
678-231-1578 Cell