Good Wednesday afternoon! We're at the middle of the work week and as the weekend draws near, we continue to hear mixed messages about the current housing market.
When you're out this weekend running your errands, and driving by those 'For Sale' signs, you just might ask yourself, "So, who is buying now?" I'll tell you! The financially savvy, the long-term real estate investors, the 'under contract' sellers, and the month-to-month renters that's who!
* - The financially savvy. These are not the people who want to 'get rich quick' and buy real estate with high hopes of a double-digit appreciation on a monthly basis. These are your buyers who dance in tune with their real estate agent, account, mortgage broker, and financial planner, and discipline themselves by saving regularly and investing in multiple avenues (diversifying). These buyers understand capital gai ns tax and are moving up to take advantage of the $250,000 exemption for singles, or $500,000 for couples. These buyers also understand that real estate markets have their cycles just like all other markets, and take to heart Warren Buffett's mantra 'buy when no one else is buying, and sell when no one else is selling'.
* - The long-term real estate investors are the ones who are now bailing out the inexperienced overnight investors who were looking to make a quick buck. Been down to the county courthouse recently? The crowd of investors has definitely gotten smaller, but guess what, that means better deals are being made and foreclosures are not being bumped up amongst investors and sold at market value. Long-term investors are setting themselves up to be 'equity-rich' when the next sellers market cycles through. And that, in turn, will enable them to use the properties they buy today as leverage for future purchases.
* - The 'under contract' sellers are those sellers who studied the market, and listened to their real estate agent and waited until their home was under contract before purchasing another home. In a sellers market, a loan approval and clean contract were the rules, now a non-contingent seller who is moving up is in the perfect position to be selective, and take advantage of countless builder incentives with a new construction, never-lived-in home.
* - The month-to-month renters who 'laid dormant' during the sellers market are now 'blossoming' into homeowners. They are taking advantage of seller paid closing costs, low contract deposits, and interest rate buydowns. Renters with credit issues don't have to succumb to above market interest rate mortgages. With seller buydowns, the household budget can remain in tact.
So, despite the grim reports, there are still lots of buyers taking advantage of this buyers market. Do you know anyone looking to buy a home today?
Work hard...play harder...live well!
Make That Move!
We'll be around this week (and weekend) for your real estate needs!