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A Great Time to Buy?
Saturday, August 5, 2006
The Market at the shore, similar to most of the country, has seen an increase in Inventory, and a decrease in the rabid demand of the past 5 years. Consequently, there are many more properties to choose from than in recent years. Additionally, mortgage rates are still GREAT!
Using the simple model of Supply V. Demand; the supply shows an increase, the demand decreases, and opportunities present themselves. A savvy Buyer will recognize that they can now pay LESS generally then in the past 5 years, for better LOCATIONS, that they have more homes to CHOOSE from, and they still have a chance to lock in a FANTASTIC mortgage rate. There is so much talk about ARMS, but what about the nice 30 year rates that are STILL out there? I guess some people became "spoiled", but the person with common sense will see that rates are still extremely good.
While a ybuyer may have been faced with little inventory, and an overly competetive market in the past several years, often paying over the asking price for a home - today, they can bid, and negotiate. Many times this can be on a price that has already been reduced significantly from the original number.
MANY people are sitting around and waiting to see what will "happen". We as humans tend to follow others. The "Bubble", was, in my personal opinion , created primarily by the media instilling fear in the public, and decreasing confidence in the Real Estate Market. Funny how things are portrayed; again, common sense is not employed. As the less adventureous of us wait and see what the others are going to do, the pioneer, the one with some guts - is going to pick up a sweet deal, this is my opinion of course, but I have been pretty accurate - calling this market slowdown WELL in advance.
I feel those who wait around too long, just as in the gold rush, or any other number of analogies, may lose out on a special window of opportunity. lLike buying a stock at a good price?
We have seen a lot of prices come down, but I don't think owners will experience the sense of panic some people may anticipate, not the ones in this town. In my opinion, we have seen a pretty substantial correction. Most of my owners remain confident about their properties, and don't intend on giving them away. Most have substantial equity even if you took 20-40% off of last year's value.
Personally, I am now looking to buy another property at the shore, and am encouraged by the increase in the number of choices I have at more attractive prices.
I feel that the most adventuress of Buyers will see this time for what it is - a great one to do something. The iron is in fact hot, those with vision will strike.
I do feel, however, that many or most people will still sit on the sidelines with their hands in their pockets, waiting to see what others will do. Like the beffett, or dance floor, many people wait until the "leader" type go first, and then follow. Like the old time carnival people used to do ; a "mark" was a carnie that dressed like a regular person. They would buy a ticket, and then people would see that, and follow. It is human nature.
The pioneers of today will come down, see how much they have to choose from, compare mortgage rates (I AM NOT A MORTGAGE BROKER) historically, look at the past 5 years, look at the numbers, and BUY. It's that simple. And when people see that happening, and realize this market is nothing like the primary market - they will not want to lose out.
Are YOU that person? Isnt this just simple logic?
