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Two years ago I wrote this post… And it is almost embarrassing… I was SO wrong. So wrong.
Or maybe I was right, but just a couple of years too early (nope, I think that saying I was wrong is closer to the truth).
In effect, my opinion was the real estate was poised for a recovery. The prices were cheap, and mortgage rates were almost impossibly low.
Prices are lower… and so are interest rates. There are still deals out there (but at least there is a fight for some of them). But the fact remains that I misread the market, then. I tend to be a little more cynical about it now…
But, all of the same forces that were lined up pointing to a recovery, like the media talking it down, investors like Warren Buffet looking at real estate, etc., are still there.
What I hadn’t banked on was unemployment and how it would affect the real estate market. Unemployment is up about 30% from where it was two years ago. Despite the bailouts, government takeovers and TARP, people aren’t working. Until that happens, we won’t see a real estate recovery… But when it happens, it will happen in a big way. I still believe that. It won’t wind back up as fast as things unwound, but the best deals will vaporize from the market.
As mentioned, I have had buyers that have had to compete for properties at the entry level. It is a glimmer of hope…
Don’t hesitate to shoot Lane a message if you have any questions, or need any help. And check out the new links for FREE Property Searching, FREE Comparative Market Analysis and FREE Market Reports. They are near the top of the page…
