March State of the Market According to the news
Looking at the news is always interesting. They put a twist on things to sell more papers or get peoples attention. However, a lot of times there is a big difference in what the headline suggests and what the article is really about. My wife once sent an email to Hubble Smith, who is the main real estate writer for the Review Journal. This was just prior to our real estate bust. Anyways, she said: Hubble, the headline of your article says our real estate bubble is bursting, but the data in the article does not suggest that at all. Hubble said that he only writes the articles, somebody else writes the headlines.
What the headline writers need to realize is that what they write has a huge affect on how people act. If you read that the real estate bubble is bursting, even though the data suggests differently, you are not going to buy any real estate. Right? Thus, the bubble will burst.
What is going on in our market right now is completely different than what was going on prior to the bust.
Here is what I see:
1) 66% of the buyers last month were investors
2) 55% of the transactions were cash
3) We currently have a 2 month supply of rentals and that number is going down. Even apartment vacancy rates are going down.
My take on this? It is an amazing time to buy. For investors, the cash flow equation is amazing and there are a lot of tenants out there. For owner occupied: You can buy for way less than you can rent, save money on your taxes, and possibly have future appreciation. It is all good!
Posted at 12:19PM Mar 14, 2011 by Jeff and Kelly Stafford in Real Estate | Comments[0]
