Before I start rambling on about how busy things have gotten of late, let me again state that for most people who are buying/selling homes what the market is doing isn’t as important as most make it out to be. The main concern is whether you can afford to make the payments on what you buy. For more info read my six art series on “When to buy and Sell”. The following info may make some difference to the homeowner, but it is more for those who want to invest in properties specifically for profit.
Since the beginning of February, we’ve seen a gradual heating up of the market. It started with the first time buyers taking advantage of the combination of lower prices and incredibly low interest rates. Things kept getting busier month by month, but overall the media generated scare that slammed the real estate market and I believe the economy ( once again I am not an economist, but those I speak to who are support this view) took a while to start to thaw. And as always happens, as soon as the media started to report a small change (either perceived as positive or negative) that change becomes a big and sudden change. I think it was in June sometime that the media started reporting this increase in sales, and my phone went from silent as a country graveyard to what I would call reasonably busy. Though admittedly, most buyers were still a bit hesitant to commit or rather “buy”.
As summer got hotter, the market got a little cooler in terms of activity. This is fairly typical in the hottest days of summer which I’ve always presumed was because so many people are on the beach or on vacation. I was still working more than the very beginning of the year, but not a whole lot. It had been about a year since people overall had bought into the notion that the world was about to come to a financial end, I was seriously starting to question my involvement in this career of mine altogether.
That was about a month ago. Since then, I’ve been doing 50 and 60 hour weeks and still unable to post to this blog the way I used to/would like to or answer most of the emails I’ve gotten about things that aren’t specifically about buying or selling a place. I’ve done more business in the past month than I did all of 2009 before it. It looks like this upcoming month will be similar for me as well. It should be a good year for me in the end.
This is just one Realtor’s perspective. From what I hear around the office, most of the others have had similar experiences but not as “all at once” as my own. I tell this story because I believe it is the sort of thing that you can’t really tell from looking at statistics alone.I would like to point out to you though that in terms of the statistics on a month by month basis, prices have already started to rise since the beginning of the summer.
Before you finish reading this with the thought of “it’s a good market”, let me reiterate my philosophy that there is no such thing as a good market or a bad market. It just depends on what you want to do. What is problematic for buyers is usually good for sellers and vice versa. The exception being high interest rates which are bad for both sides. But not to worry, they still really really low although they seem to be creeping up slightly.
So, back to my mantra, but described with different words: There are good times and better times to buy real estate, providing you can afford those payments and maintenance. The price will increase in the long term no matter when you buy, you just need to be patient. This isn’t the stock market, real estate takes time but it will reward those who can plan and wait.