Who Is Saying It is Time To Buy a Home? EVERYONE!

"Enough with the doom and gloom about homeownership." - WSJ 9/16/2010

WOW! If that quote was attributed to the National Association of Realtors or the National Association of Home Builders, it would have been quickly dismissed. However, it was the Wall Street Journal that was calling for the end of the ‘doom and gloom' talk surrounding real estate.

We are finally seeing a powerful backlash to all the recent claims that homeownership should never have been part of the American Dream. It is about time!
The WSJ has been posting on the financial advantages and the other non-financial benefits of homeownership for over a year. "We must admit that, at times, we felt very lonely. It now seems that we are part of an ever growing army of believers preaching the advantages and opportunities available in today's real estate market. Who have joined this cause? Let's name a few."

The Nation's Real Estate Pricing Expert

Karl E. Case is a professor emeritus of economics at Wellesley. Professor Case is also co-creator of Standard & Poor's Case-Shiller House Price Index and is recognized as the one of the foremost authorities on real estate today. In a New York Times op-ed piece earlier this month titled, A Dream House After All, he said:

"I have never quite understood what the American dream really means when it comes to housing. For some people, it means having a solid and fairly safe long-term investment that is coupled with the satisfaction of owning the house they live in. That dream is still alive."

"Others, however, think the American dream is owning property that appreciates by 30 percent a year, making a house into a vehicle for paying bills. But those kinds of dreams have become nightmares for the millions of foreclosed property owners who have found themselves sliding toward bankruptcy."

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense.

The Wealthy

The only segments of the housing market that are showing sales growth are the price points over $1 million. That market is up 6.1 % in the second quarter of this year vs. the second quarter last year. A recent survey showed that over 30% affluent buyers are planning to either build/buy a new primary residence or a second/vacation home in the next twelve months. It appears the wealthy believe now is the time to buy!

Everybody Else

Fannie Mae just released their National Housing Survey. The survey reported:
• 82% of respondents consider homeownership important to the economy, up two points from January.
• 70% of respondents think it is a good time to buy a house (of which 36% think it is a very good time to buy), up six points from January. This is also four points higher than the 2003 survey - well before home prices peaked - when 66 % said it was a good time.

Bottom Line

Our iconic financial newspaper, our nation's real estate pricing expert, the wealthiest people in the country and 70% of everyone else think now is the time to buy a home. It probably makes sense to listen to them.

What is the wait in our Richmond Real Estate Market

The Richmond, Virginia metropolitan region of Long & Foster Real Estate met today for a Town-hall gathering. Several hundred local real estate agents, brokers and sponsors attended this special event which spent much of the morning commenting on the state of the company and the realities of real estate in our market sphere. The most important message I took away from all this is, of course, that with the amazingly low interest rates available to consumers today, and the apparent stabilization of real property in our area, it is perhaps the most affordable time in our history to purchase a home. So what is everyone waiting for?

Well, first, this premise presupposes that one has a relatively stable/secure job, ensuring enough confidence and providing proper financial wherewithal to make the next step into home ownership – or to make a move-up purchase. This is without a doubt a HUGE obstacle for anyone to see beyond, and if you’re risk adverse, it may not be manageable. But is the risk any greater today than four years ago when lenders were literally giving away mortgage loans while home prices continued to skyrocket through the heavens? Honestly, I just don’t get it!

Secondly, the media seems to have cornered all futures in real estate. I think it is too easy to pull the media card whenever our woes exceed rational justification, but you have to admit there are no headlines out there promoting the long-term benefits of the current interest rate. As a fellow realtor mentioned this morning, we should be shouting about the best kept secret in the real estate market – low interest rates are far better than any tax credit the government can offer. Just do the math! But hush; don’t tell anyone, it’s a secret. Maybe then the public, and possibly the media, will take note and make a step toward home ownership and a sound life’s-investment.

I can’t say what it will take to help people feel better about real estate, but my business tells me that the housing market continues to improve. Someone must be feeling better about things, because the difference between what is going on today over just a year ago is astounding, and our numbers/statistics reflect this notion. The caveat to this observation is that we need to continue looking forward and forget about what’s in the rearview mirror. The years of 2005-2007 are thankfully gone. There is a new reality out there now for all of us to observe, just ask your REALTOR®. The honest truth is always plain to see!

Is There No Winning in Today’s Housing Market?

There is no question it’s a buyer’s market in some rather uncertain times. Sellers still appear unrealistic about price and condition, and purchasers feel no sense of urgency to make a decision – and both sides are unhappy about it. This must be the reason why people feel like there is no winning in today’s housing market.

What’s truly surprising to me is that when making important decisions about their homes folks often don’t use the data provided by us as professional Realtors. They want our opinion, our experience our knowledge, but when the facts are delivered they would rather take the advice of a neighbor or close friend living in another state. I can’t figure it out. I’ve come to the conclusion that irrational justification supersedes all commonsense; there is just no helping some people. The thing to remember for the rest of us is that statistics, when gathered correctly and looked at honestly, tell the story every time. What we must also keep in mind that this target is always moving!

I work hard to get it right! In some cases I’ve missed the chance to represent a seller due to honest evaluation of the market, or I’ve simply had to walk away because of unrealistic expectations. I know I’m better off in the end, but there still remains the feeling that I’ve failed by not being able represent their housing needs. The bottom line is, when not taking good advice from a professional Realtor, sellers keep chasing the market and buyers are missing great deals.

In my market area of Richmond, Virginia where unemployment is 2% lower than the national average, and foreclosures are almost twice as low as the national average, the question remains, who are the winners in today’s market? I can tell you they’re out there, but they are being very, very quiet. They are the one’s who are successfully buying and selling real estate NOW!


Source: John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann VanderSyde by visiting www.InSydeHomes.com

Is Now a Good Time to Buy Real Estate?

Real estate seems to have been a fickle friend to some of us recently. At one time it was something you could rely on to increase your bottom line and secure your future. Then, suddenly, it wasn’t! Well guess what – NOW is the time to reconsider how you feel about real property as an investment opportunity or as a new home.

You have already heard the advice of real estate professionals, the media and market prognosticators outlining all the signs of the “positive housing market”. Some will feel it is a desperate push to revitalize home sales and get you in before it really bottoms out. Others will realize we don’t know where the bottom is until it’s passed. The signs are here, and the market is moving again. Stand on the side line or get into the game, it’s your choice; but if you are considering a move, what are you waiting for?

You can take advantage of affordable prices resulting from a down market, or use unprecedented incentives being offered in new construction to get the deal of a lifetime. Creative ideas such as buyer-protection warranties provide additional confidence to act now. Besides, historically low interest rates, government programs and first time buyer tax credits will end before you know it. Just remember, as someone once said, “Opportunities are never lost; someone will always take the one you miss!” Ask your qualified real estate professional for more information.

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300