It is time to buy real estate; many other wise people have already scooped up the best values in the marketplace. Failure to buy now means you may miss historic opportunities.
Everyone wants to buy low and sell high.
In reality, the masses buy when prices are going up and they sell when prices are dropping. Of course this is backwards. However, ‘market timing’ is a challenge. No one can forecast the future with certainty but I think it is safe to say that now is a good time to believe we are at the very bottom and starting to move up. Here is why:
The price is very low! Real estate gurus always advise investment buyers to buy at 30% under market value (a no brainer). This is rarely realistic, these kinds of properties are usually impossible to find and to secure these you also must have a pile of cash. Today prices across the board are at least 30% under the market value of 5 years ago!
Interest Rates are rising! Read the Buyer Advisory #1 which explains why interest rates must rise with an improving market and a strengthening economy. Nothing affects your power to buy as much as a low interest rate. For 40 years we have been paying interest rates routinely in the 8-12% range; at the highest in the early 1980s the mortgage rates were almost 21%. Low prices are good, low interest rates are even better.
Sellers are motivated now! Sellers have been locked up in their property for too long and have pent up demand to sell and move on. That motivation and intense pressure will soon be alleviated and sellers will exact revenge on buyers when they take hold the market power. I remember the irrational demands of sellers in the height of the market in 2006-2007; it was not pretty! Buy now while you have generous opportunities.
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Randy
Randy McCreith, Principal Broker
Bella Casa Real Estate Group
Cell: 503-310-9147 Fax: 866-281-6653
Randy@TheBellaCasaGroup.com