In a market that the media is hyping as a "soft market," or even a "down market"…why would anyone buy a home or real estate investment?
If we look at the history of the real estate market, it is evident that we cannot predict when this market correction will take an upwards turn. No one can make an accurate "prediction" of when this will occur. But how many of us could be quoted as saying, "I wish I knew then what I know now" in regards to real estate values?
Take into consideration the following quotes taken from the media in reference to the real estate market…
"The goal of owning a home seems to be getting beyond the reach of more and more Americans." -Business Week, 1969 (average price at the time: $28,000)
"The era of easy profits in real estate may be drawing to a close." -Money Magazine, 1981
"If you are looking to buy, be careful. Rising home values are not a sure thing anymore." -Miami Herald, 1985
"Most economists agree…a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was…" -Money Magazine, 1986
"We're starting to go back to the time when you bought a home not for its potential money-making abilities, but rather as a nesting spot." -Los Angeles Times, 1993
Note that 1993 was the absolute low-point for real estate values in Los Angeles. Prices have sky-rocketed since.
"Financial planners agree that houses will continue to be a poor investment." -Kiplinger's Personal Financial Magazine, 1993
"A home is where the bad investment is." - San Francisco Examiner, 1996
Does any of that sound familiar in today's media? If only we knew then, what we know now, we would have been able to make a lot of money in those "down markets." Fast forward to today. There are a few things we do know.
The local Boise real estate market has been in correction mode for more than a year now. Builders are not replacing the new homes that have been purchased and the new home inventory is shrinking. By the time the New Year comes around, there will be 500 to 600 fewer new homes on the market and your opportunity to buy the "Best House at the Best Price" will have passed you by.
If you follow the rules of investing, "buy low and sell high," you will look at this market as a chance of a lifetime. The last time we had a market correction was after the September 11th tragedy and we recovered in 9 months. After being immersed in a correction mode for 16 months, how much longer can it last?
If it is true that history repeats itself, then signs, such as the government stepping in on September 18th and announcing they are lowering the federal fund rate by ½ percent, point to a recovery in the not so distant future. And although the revitalization will not happen overnight, the fact that steps have been put into action for an upturn in the market infer that we are at least close to the bottom, if we aren’t there already.
And with Boise being rated in magazines nationwide as the best place to live, best quality of life, best affordability and more, our market correction and adjustment is likely to recover at a much more rapid pace then other markets in stress.
So what does that mean for today's real estate buyer? Most of the best money-making scenarios have been negotiated in tough times. There is real estate purchasing going on, and people with money to spend are investing in real estate now and under the radar. Deals are being made…negotiate the best price and closing date that works for you and buy the home you dreamed of, but didn't think you could afford or couldn’t afford last year.
Carpe diem! Seize the day! Secure your new home now before the crowd mentality turns and you are again competing with the masses for real estate deals.
It's opportunity time! See one of our on-site agents at TreasureValleyCommunities.com and ask about our new special pricing and how you can buy the right house at the right price today!