Saturday, November 27, 2010
Bottom or Not?
This is the question with no answer from the experts or anyone else. Remember real estate is local. This could never be more true. Today we may even see differences from one city block to another.
Several issues will need to go away in order for us to reach a normal environment. 1. Jobs. This uncertainty is holding back folks who are afraid to take on new debt. 2. Households. This number has diminished as folks have moved back to their folks, or even the folks moving in with their children. 3. Delinquent mortgages. Many banks are holding mortgages where payments are past due and are keeping some foreclosed properties off the market to keep prices from falling further. These properties have to flow through the system for a strong recovery to begin.
This is not to say that a buyer, in the right situation, should not purchase a property. In fact it is a great time to buy. A buyer who is going to live in the property or rent it as a investment has a great opportunity to acquire a great deal. It is not, however, a time to "flip" properties.
In Cape Coral, I see the waterfront single family homes recovering first. These properties can be purchased at 1990's prices!
This is the question with no answer from the experts or anyone else. Remember real estate is local. This could never be more true. Today we may even see differences from one city block to another.
Several issues will need to go away in order for us to reach a normal environment. 1. Jobs. This uncertainty is holding back folks who are afraid to take on new debt. 2. Households. This number has diminished as folks have moved back to their folks, or even the folks moving in with their children. 3. Delinquent mortgages. Many banks are holding mortgages where payments are past due and are keeping some foreclosed properties off the market to keep prices from falling further. These properties have to flow through the system for a strong recovery to begin.
This is not to say that a buyer, in the right situation, should not purchase a property. In fact it is a great time to buy. A buyer who is going to live in the property or rent it as a investment has a great opportunity to acquire a great deal. It is not, however, a time to "flip" properties.
In Cape Coral, I see the waterfront single family homes recovering first. These properties can be purchased at 1990's prices!
