Just the word "foreclosure" can send many running or begin to make a person sweat. It carries such negative energy that I think it needs to be put into perspective in Washington state.
Current foreclosure rate in WA:
.49 %
Current foreclosure rate in the U.S.:
1.4 %
1997 foreclosure rate in WA:
.5 %
1997 foreclosure rate in the U.S.:
1.08 %
Even though there is a lot of press right now about foreclosures the nation and WA state are actrually down from highs in 2001/2002 when WA reached 1.24 % and the Nation was 1.51%.
Without perspective the media can drive our real estate market into a holding pattern. Buyers will stop buying and sellers will stop putting their homes on the market.
Bottom line.....this may be the best time that I have seen in 17 years to purchase in our area. There are a lot of homes to choose from, Sellers are much more flexible and to top it all off....interest rates continue to stay very low. To those that ask the question "will interest rates go lower" I respond maybe....but it is not worth the risk. With rates being so low, there is a better chance that they will be higher 12 months from now than they will be lower.
Showing newest posts with label Good Investment. Show older posts
Showing newest posts with label Good Investment. Show older posts
Sunday, December 16, 2007
Friday, September 28, 2007
Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show
Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show:
Jim Cramer is as sharp as they get when it comes to stocks but missed some basic points about real estate.
Buying real estate is not like buying stock. You don’t buy houses low today and sell them high in a few days. Buying a home is a long term vision. How long term depends on your situation and the local economy.
My advice to buyers:
1) Look at your situation. If you are only going to live in the area for a year or so, buying a house may not make sense. If you are going to own this next home for 3 or more years it begins to make more sense in a normal market.
2) Talk with your local Realtor. They know the market history, they know the current inventory and they know the current influences on today’s market in their area.
Generalizing about the real estate market in the United States is as dangerous as generalizing about stock investments. I think even Jim would agree that in a bear market there are still specific companies or sectors that are doing well and would be a good investment even though a large part of the market is down.
Jim Cramer is as sharp as they get when it comes to stocks but missed some basic points about real estate.
Buying real estate is not like buying stock. You don’t buy houses low today and sell them high in a few days. Buying a home is a long term vision. How long term depends on your situation and the local economy.
My advice to buyers:
1) Look at your situation. If you are only going to live in the area for a year or so, buying a house may not make sense. If you are going to own this next home for 3 or more years it begins to make more sense in a normal market.
2) Talk with your local Realtor. They know the market history, they know the current inventory and they know the current influences on today’s market in their area.
Generalizing about the real estate market in the United States is as dangerous as generalizing about stock investments. I think even Jim would agree that in a bear market there are still specific companies or sectors that are doing well and would be a good investment even though a large part of the market is down.
Subscribe to:
Posts (Atom)
