Part of my daily reading ritual includes Seth Godin’s blog. He is often described as a marketing genius. I think that well might be true. But, his blog isn’t just about marketing, but also often touches on greater issues. This one certainly did. Although, he actually wrote it four years ago… still rings true. Did you go read it? I’ll wait… … … … .. .
Ok, now we’re on the same footing. I think that much of what Seth mentioned can apply to real estate today.
- Interest rates are low. I just looked and good credit ratings are pulling in 5.62%… the average over the last 44 years is 8.22%.
- Inventory is high… Just over 9600 homes in Gwinnett County, GA on the MLS.
- Sellers are motivated, it is a buyer’s market.
- Rents are rising.
If you are a first time home buyer, this might be a great time to move. I am still looking for a change in the market around spring, and the best deals will be gone before we know the market has turned. A couple of months before we figure out the market has turned.
If you are a move-up buyer, look to see what sort of deals you might be able to find. If you take a 5% hit on your current home, but get a 5% hit off of the more expensive move-up home, you are in good shape… especially with the great rates.
If you are an investor, this might be a VERY good time to pick up inventory. get it on sale, while the choices are plentiful and much of the competition is still nervous. First movers are going to be the winners. Also, rents are rising… more on that in a moment.
Who shouldn’t make a move?
Downsizers. This isn’t your day. If you can hold off, you probably should. The hit on your current house may outpace the savings on a new house.
Those with bad credit. Work on getting your ducks lined up. Fix your credit, and you will find good rates. I know that rents are rising, and I really want you to be able to get out of the rent trap, but don’t jump before you have the landing bag in place.
Mistakes…
Right now, we are in the closing chapters of the first book of the sub-prime mortgage meltdown. I have already written a few posts about how this happened, but to re-state it quickly… People bought homes that they couldn’t afford… and lenders let them. The bubble popped, and the bills came due.
Don’t do it. that is why I am counseling the credit challenged to fix that first. I know that it isn’t fun to rent, not knowing what you will have to pay next year, but you need to get your financial house in order.
I’m starting to go off topic… and I don’t want to do that. So, back to the show…
The point.
The fundamentals are sound for Gwinnett Count, GA and the surrounding areas. Atlanta and Georgia both have solid job growth, and haven’t had the huge run-ups in prices that are unwinding in other markets. The variables are great on the buyer side, prices, interest rates and inventory.
So, instead of looking at the negatives as portrayed in the national media, we need to look at our own market. When the world is “zigging” it is often time to zag. it isn’t the right strategy for everyone, but for some it is a GREAT way to position for the coming market.
If you are looking for real estate, especially real estate for auto enthusiasts in Gwinnett County, GA, give me a buzz.