The election is over. So what??
Ok, we have been waiting for the election to be over and now it is. Our markets seem to be in turmoil and the news has not really gotten much better. So what??!! Yeah, I said ‘So What?!. The truth is that it will make almost no difference in our daily lives. I know some of you are looking for a new job or worried about the future but the reality is we don’t have any control over the market (stock or real estate) and we have to work within the boundaries we are given.
Some great things to know are that we are in a buyer’s market in Real Estate. Interest rates are below 6% for anyone able to qualify for a loan and with FHA still alive and well that requires a small down payment (3.5%) and in some areas there is still 100% financing. Places like Hall County, Barrow County and Jackson County.
Thanks to a rise in foreclosure properties we are ‘HAVING A SALE’ in Real Estate. All houses are down about 10% and there are some that are down 20% or more. Now to take advantage of this news you have to be a buyer!! So who do you know that is even thinking about buying?? This is the time like none other. If you want to discuss your personal situation or you know someone thinking about buying then call me (678-231-1578). I would be happy to answer any questions.
So, we have lots of inventory, prices are down and money is available to qualified buyers. There has never been a time like this. I know you are worried about the economy but understand that if your personal economy is good then the national one will probably not affect you all that much. We are making an adjustment in the market. One that was long needed and while it will be painful for some it is going to be a good thing in the long run.
Some facts to know:
- There are 76 million households in the U.S. that own their home – 24 million of these homes are free and clear
- There are 52 million homes with mortgages – 97.2% of these are not in foreclosure, 93.8% of these homes are current on their payments
- More than 1000 banks closed in 1930 – only 14 U.S. banks have been taken over in 2008
On a sobering note:
- Over 20% of homeowners with a mortgage owe more than their home is worth. That is a national statistic and not true locally. We have not seen the big run up in prices like California or Florida so this does not apply to us in Atlanta.
- 40% of all foreclosures are non-owner occupied
How did we get here?
Decade Homes Sold High Homes Sold Average
1970’s 3.9 million 3 million
1980’s 4 million 3.3 million
1990’s 4.9 million 3.9 million
2000’s 7.1 million 5.6 million
Resale numbers – the above does not include new home sales.
Sources: Wall Street Journal / Moody’s Economy.com / RealtyTrac / NAR / Forbes
We are going to see 2008 as the 6th or 7th best year ever in the number of Real Estate transactions. The news won’t tell you that but it is the truth. I have a market study that I am preparing that will prove that. If you want an advance copy please let me know. I’ll be happy to drop one off to you.
Now, go and pay attention to your personal economy, watch the news sparingly and don’t panic. Call me if I can help you with anything. That is what I am here for.
Thanks for listening,
Jerry W. Robertson