Homes are selling and there will always be people moving from place to place that will be in the need of buying another home. Buying and selling in the spring of each year is the best time. With interest rates down so low the sellers are able to increase their price up more over what they paid. The only problem with this is that loans are harder to get than they had been when the interest rates were on the higher side.
In reading my local newspaper, according to the financial corporation Freddie Mac the house buying industry has steadily increased 6.2% in the past 30 years. This has caused a huge Real Estate Boom that any one has ever witnessed in this time span. Only now, with the inflation and the nearing of another depression similar and maybe even worse than what was seen in 1930’s, the Real Estate Market may hit rock bottom before it will be able to pull out of its slump. Still people need a roof over their head. And it is more practical when money is tight that people invest in real estate vs. renting. Renting does have its advantages, but then what do you have to show for it after you pay out every month. Essentially nothing.
Here in the Heartland of Rural America, in my opinion as well as I have actually heard real estate agents locally say that we are not feeling this crunch yet. Houses are selling slower and the higher end of the scale homes are taking a little longer but they are selling. And the homes that are in the mid range of the spectrum are the homes that are selling the most. So with this yes there is some profit to still be made on the sales of real estate.
Looking into buying a home that has a foreclosure coming up on it is one of your better investments, as you are going to get a better buying price on this. It does look like however, the time is over where you are going to be able to buy real estate for a small price and be able to turn around and fix it up and a few months down the road turn around and sell that same real estate for much more. Real estate is moving but it is slow. Even the people who are buying to rent are going to find that it is going to be difficult to be able to even make enough to meet their mortgage payments.
The buyer is going to have to be sensible when buying since the impending doom that is heard so frequently on the news. While the seller is going to have to be more patient and most likely more negotiable when it comes to selling. I also, think that Real estate people need to stop trying to make that huge profit that is just not there. I think that there is a margin for profit but it is going to be on the lesser end of the scale. At this time the Real Estate companies know that people will always be in the market for a home, so they are going to milk this project dry. Which is only going to hurt them in the long run.
Right now all around the market is at its lowest and will go even lower as it will near the ultimate bottom. But I can’t see it staying down for a very long period of time; in fact I really think that in this year of 2008 you will see real estate start to climb once again, in spite of the fact that interest rates are not going to come up.
One thing that we need to realize is with this being an election year anything could happen at any time. Lots of promises will be made but who knows how many will be carried out. After, the election is over then we will start to see things either on the rise or decline. With pricing way out of line now on everything we will most likely see less profit.
It takes team work to see that profits will be a reality. Every one is being hurt by this economical crunch. Mortgage companies make it hard for a person to get a loan now, yet they are offering so many incentive things to get people to come in and apply for a loan.
The Real Estate that is seen most selling currently is the single family dwellings. This is not a good time to be buying the large commercially zoned real estate with the unstable market of economic.
Keep in mind as well that your buying and selling is going to be better in some areas than others. If your area has a good industry and a lot to offer in things like better schools, entertainment, shopping, and jobs offered then you are going to see a better profit in these areas. Some areas that have little to offer will be slower to sell and buy and little profit is going to be seen in these areas. Buy and sell wisely and I think that will be the key to avoid the bottom of the market.