Trends on Both Sides of the Fence; Here's What is Happening
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We are definitely seeing a plethora of lengthy reports about the real estate market these days, whether on a national level or honed in on a particular local area. But the fact remains that the market is in an unstable state and keeping track of indexes, watching over home sales and how they fluctuate from month to month or year over year, is giving us a glimpse into what to expect. It is these very measures that allow us to foresee the greater trends that exist so we can act accordingly. Here, according to which side of the transaction you are on, are some happenings in the industry and what they mean to you as a home buyer or home seller.
Buyers Don’t Beware
Buyers Trend #1
Foreclosures have slowed down.
For the most part, whatever foreclosures that had flooded the market have either slid into transition stage, where the banks are reviewing documents and going through the sometimes lengthy review process that comes before accepting applications to purchase a foreclosed home – or there are fewer properties available. There was indeed a flood of distress sales in the market that occurred in the recent past but banks have now shifted away from foreclosures and they are favoring short sales instead. Short sales are a far better option for many reasons, but the two main benefits remain 1. Homeowners are either able to retain some of their credit while buying back their home at less than its current value and 2. Banks are spared the added expense and risk that goes along with foreclosures.
Buyers Trend #2
Prices remain historically low.
One thing that has not changed for the duration of our current recession, even as we have headed into a double-dip economic downturn, is that as a result home prices continue to be at their lowest level in years. In the S&P Case-Shiller Home Price Index, it is indicated that housing prices these days rival a 30-year low and they seem to be hanging there in place as the market remains unsettled. Even though prices are as low as they are, the fact remains that these transactions that are taking place are happening with regular homeowners and simple sales deals, rather than banks for foreclosure sales.
Buyers Trend #3
Rates are still at an all-time low.
Interest rates, depending on the day, are still as low as a little under 5% for the average 30-year fixed rate mortgage loan. For potential homeowners and those who want to move up or seize the opportunity to move into a luxury residence, this could not be a more perfect time to invest in that property. For those people willing to remain in the mix for the long haul, the current market trends will predominantly not affect them in terms of return on investment. The market will indeed bounce back, whether 6, 7 or even more years later. And when it does, you will end up having much more house (in terms of value), while still paying that very low interest rate.
It’s a Small (Selling) World After All
Sellers Trend #1
There are lots of buyers looking to buy.
When you are selling your property, the more the potential buyers the merrier. With the number of buyers who are looking for a great deal your chances of selling are a lot better these days and if you have a home that has unique or upgraded amenities you can further avail the opportunities that will come with having that edge over other sellers.
Sellers Trend #2
Inventory is down.
With the number of pending sales in limbo on a day-to-day basis, inventory figures are relatively low. This is great news for people looking to sell their properties, because that translates to more buyers for the taking and the ones that do come looking at your property are far more impressionable.
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To sum things up, right now is a great time to be a buyer – especially with all the incentives out there ranging from super low interest rates to housing prices that are closer to those from 7 or 8 years ago. If you can afford it now, buy now.
As a seller, the main advantage you have these days is that there is less inventory for those buyers out there looking for a deal now – which means you have the edge and better chances of selling that property.
The trends keep fluctuating a bit here and there but the major things remain: low rates, low housing prices, low inventory. And now is the time to seize the opportunities that lie within these trends.
How to Turn Your Vision of the Future into Reality
In a nutshell the definition
of success is reaching one’s goals. Although
success is defined the same for everyone, it is different for everyone because
success means reaching your goals. It’s truly individual. Goals go beyond financial ones to those
related to friendships, family, spiritual growth and more.
Setting goals is so important,
yet more than 90% don’t have written goals.
The number one reason people don’t have goals is because they don’t know
how to write goals, which is not easy, but you have to drill down and overcome
the inertia. Second, people are afraid
to fail. Remember, if you don’t set your
goals you’re failing automatically. Third,
people buy into the idea that it’s too late or they’re too old to set goals. You’re never too old or too late to set
goals.
There’s a formula for success
that boils down to setting goals and walking toward them. Here are 12 steps to achieve your goals.
1. Have a burning desire for the goal or you’ll
never accomplish it.
2. Believe your goal is achievable. To do this, don’t set unrealistic ones.
3. Determine why you want to attain the goal. Drill down and say how the goal is important
in your life and how it will make a difference.
4. Write it down. A lot of people set goals, but they never put
them in writing. You have to be able to
visualize the goals and writing them down helps you do this.
5. Determine a starting point. You start by writing them down and include when
and how you’re going to start the plan of action to achieve your goal.
6. Set a deadline. Goals without deadlines are
dreams—not goals—so have a deadline, whether it’s a month, a year or five years
out.
7. Identify what is holding you back from reaching
your goals.
8. Determine the skills or knowledge you need to
achieve your goals.
9. Determine the people who can help you.
10. Make an action plan to reach all your goals—and
a starting point.
11. Look at your goals often. By putting your goals on an index card and
keeping them on you, such as in a binder, you can look at them daily. If you read them aloud every day, your mind
will then subconsciously push you toward your goals.
12. Never give up. Even
if you write down your goals and you’re three months into it and you’ve missed your
deadline, don’t let that stop you. Never
give up. The person who gives up fails,
and the person who perseveres never loses.
I hope you find this
information helpful. I live by it. By writing down your goals, you’ll change
your life, so where should you start? Contact
me for a copy of a great spreadsheet that covers personal, spiritual, adventure,
income, retirement goals and more.
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If you or anyone you know has
real estate goals for 2013, we’d love to help.
Please contact us at 502.458.2722 or jp@jpsold.com.
Happy Holidays 2012
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To all our cherished friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn to the exciting time and events that 2013 holds, we just wanted to take a moment to thank you for all that you bring to our lives.
We have some really great plans in the coming year to bring more success to all your real estate endeavors. And with each transaction that makes it to the closing table in the coming months and years ahead – we know that there will continue to be new and exciting things to follow for all of us.
On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!
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