or have they????
As Real Estate professionals we earn our living representing clients who complete various transactions. Like any business or activity, Positioning or Timing is a critical component in achieving whatever success we have defined.
At what point will it be announced “the market has turned around?” or “Buyers/Sellers are back in the market” – IT’S TIME TO GO GET ‘EM??? For some the market or business has never been better however for the majority (at least on what has been Blogged during the past year in AR) the market or business has never been as challenging!
If you’re waiting on a Big Boom to announce the market is back – MOST WILL AGREE, that is not going to happen. In our world small indicators which multiply into larger indicators are the sign business is moving in the right direction. Our nation has seen lots of movement during March. Specifically on the housing front or issues more important to us I would encourage you to gauge these indicators and whether your light is GREEN, YELLOW or RED one thing is certain Winter is no longer here and just like the plants are starting to bloom…………….
CREDIT: Since most transaction rely on mortgages to finance the sale – Credit is the key driver to encourage buyers to Buy and sellers to Sale. We all have seen the negative affect from the lack of Credit…….whether personal or our clients. While it is no miracle cure, yesterday’s announcement to rid banks and other financial institutions of their “toxic instruments” so they could be in a better position to provide credit to businesses and families is a huge positive indicator (I thought that’s what the first Bailout last September was supposed to accomplish?????? – don’t get me started)
INVENTORY: The Mortgage meltdown which started in 2003 and became apparant to all communities in 2007 has resulted in a huge Inventory of properties. As good as that fact is…………as we have been experiencing, it doesn’t mean a thing if you do not have the credit to purchase. Lately we have seen a growing, although silent indicator that sales is increasing. Some mince hairs over this issue by trying to quantify the type of sale (Foreclosure, Developer or Resale), the facts are it doesn’t matter. Most like me consider A Sale….A Sale. One could expect and accept the majority of Sales activities would come from the Foreclosure stock. After all isn’t everyone looking for “A Deal?” Home sales are up 5%+!!!!!!!
INTEREST RATES: You could have great credit and the right inventory but it’s the Interest Rate component which speaks to the core of making the product “Affordable.” How high is high or how low is low????? The facts are, Mortgage Meltdown are not, Interest Rates have been very attractive for YEARS!!!!!!!!! Nevertheless, in reality as low as interest rates are, demand oftentimes made a good deal out of reach because affordability is based on how much you can afford. For the most part, Interest rates has beel hovering between 4.500% and 5.000% for the past 6 months. Indicators are it could get lower (although not inching down on a daily basis – OVERALL IT WILL BE GOING UP/DOWN on a daily basis) so the trick is to achieve the position that makes sense for your clients. We have seen similar environments where people are so smart, they allow affordable rates to slip past them because their greed assumed they would go lower. Anyway, in addition to various programs being adjusted to fit the current environment, Interest Rates have never been more attractive.
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THE BOTTOM-LINE. Indicators are right in front of you. You are looking at YOUR stoplight. If you’ve been waiting for the market to start moving……you may have missed the Green light, as based on the indicators as listed above you may push Go or Step on the Accelerator. Good luck!!!!
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Vice President, Chief Bloggeroligist
Tags: Credit, Housing, Housing Recovery, Interst Rates, Inventory, Market Indicators, Mortgage Programs, National Association of Realtors
