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What a Great Time to Buy a Home
Thursday, November 15, 2007
The seashore market is rife with opportunity. It is a very simple principle to understand; Supply v. Demand. I have been singing this song for a while now.
We have the highest number of available properties for sale in several years.
Additionally, mortgage rates REMAIN GREAT.
Now, if before you had to pay from 10-20% more in most cases, and up to 40% more in some cases then you can today- and today, you can get an INCREDIBLE value, and still a GREAT INTEREST RATE - why wouldn't you be looking right now?
You may have chosen to let the media's latest inapplicable diatrobe over the sub-prime mortgage market effect you. Unfortunately, for the most part, the only news that is reported is bad news. Good news doesn't sell.
It's funny, what seems to be excluded from the reports in the media is the fact that interest rates are STILL VERY LOW in comparison to history. VERY REASONABLE. Yes, things have tightened approval wise. They SHOULD HAVE. But our market usually has financially successful buyers
You may have chosen to "follow the pack." Hey, it is natural human instinct. It's scary to do something when others feel funny about it. I guess the other side of that coin (pun intended) is those who make great gains and fortunes by not following the crowd. Like those who have made fortunes by buying the right stocks at the right time. Others that jumped on the bandwagon late, who had "gold fever' and were on the tail end, in the Stock Market, and elsewhere, haven't done as well, but have traditionally complained profusely, and have had pleny of "couldas, shouldas, and wouldas."
A good friend, a very very wealthy man called me the other day. He is a Banker, and called me to rib me about the market. One thing he said was very interesting. He said, in his accent; " a very good banker once told me. Do not go where everyone else is going"
Well, well, well. Folks, why are you afraid of a great bargain right now? I GUARENTEE if 2 couple you know buy a seashore home, you will start to think differently. You can discover easy ownership to that shore home you wanted all along! Some of the better deals are going, as saavy people SEE value. I lost one the other day in a competitve bidding situation. The house was priced right, it sold in one day.
What am I doing, personally?
Well, I am looking for the best value I can find for my own home!
I am excited about the possibility that I may finally be able to afford a primary residence for myself in Avalon. I own 2 commercial properties (now converted to 1 store) but have been renting for years for my home. Now, the choices I have are much more numerous, AND the prices are down!
I want to grab something now, because I think the time is right, and I want to grab a fantastic interest rate AND a lower price. These factors together are great, and translate to much less money out of my pocket. Now, I have always swam against the current, and I think I am right on this one. As always, it is only my personal opinion, but my batting average is pretty good.
I also want to buy something before the inventory takes any possible dip. As soon as the inventory decreases significantly, prices will begin to rise again.
It really isn't rocket science.
It amazes me that people were beating down the doors to the real estate offices during the heat of the boom market, when they were faced with multiple bids on a property literally within minutes of it hitting the market. The attitude that "I have to beat the other Buyer to that house" was prevelant. Alot of diasppointment ensued, as some people inevitably lost out, or had their offers blown away by a price over asking. Alot of these folks put the idea of a shore house to bed. Unfortunately, I feel many haven't realized what opportunity is here now, just a short time later.
I truly wonder where the folks are who were disappointed when their close-to-asking-price offers were not accepted in 2003, 2004 and 2005.
Where are you anyway, people?
It's funny; but there was little concern during the boom over "what if prices go down" Not too many buyers were worried about losing, but now, it seems many are often completely paralyzed with overanalysis. For me it is pretty simple "BUY LOW, SELL HIGH"
I myself was very annoyed at the fact that I was watching what I wanted (bayfront) go up and up and up, seemingly out of my reach forever. Now, there is a chance.
I want to grab a good value, and am more concerned over the next 3-5 years then the next 3 months. I can think of 5 or 10 Buyers I worked with who made offers during the boom, and now could have a similar home less money. However, alot of them don't seem too excited about that fact. Or that the mortgage rate would still be great. I honestly think that the "hype" of the market sometimes caused more excitement than the actual homes did themselves. I welcome a return to what I was so attracted to in the beginning, finding vacation homes for families to enjoy.
If I had enough money, I would buy at least 5 properties in Avalon right now.
Funny, it has become much less fervently discussed, but rates are in fact still unbelieveably good. I guess the media got tired of telling us that information, seems when it is mentioned now, much less emphasis is placed upon this fact, and the gloom and doom is accentuated. When I look over my articles from 2002-2005 - what was primarily mentioned was ALWAYS INTEREST RATES. Please compare rates to when these articles were written, it shows how truly sophmoric the media is.
Et tu, media?
Also, I feel that although we have in fact seen a correction, the values long term will continue to hold well, and in fact, they will likely increase. When supply goes down, demand will increase. Avalon and Stone Harbor will always be desirable summer destinations.
When I started in the business, and older Broker told me that Real Estate has little logic to it, that it is an emotionally driven business. I now see how right he was.
The vast majority of my clients have NOT been hurt. Partially I hope this is a result of my always trying to steer my cleints towards what I consider to be fair and good values. That way, later if the the market were to take a hit, as it has, as long as they got a fair deal, and didn't overpay, they are "ok".
I feel the astute and saavy people who may have, as I did, been frustrated by lack of inventory, and the feeling the market was leaving them behind, will be excited if they take a close look at this marketplace. It is now EASY to find a deal. The smartest (in my opinion) will see that they can take advantage of market conditions, and buy that house they have been waiting for. Some people are in fact taking advantage of market conditions, and grabbing some extraordinary values. I hope to be one of them.
I invite those who see logic in my words to call me, anyone who would like to talk about getting more for less, to give me a call.
*the opinions expressed in this article are the personal opinions of Mark A. Marroletti, Broker of Record, and Owner of MM Real Estate, and are in no way intended to be espoused as fact. These are Mark's feelings about the marketplace.
