Hard week? Hard market? Rough eh? Well, consider these eight things and spread the good news while you’re at it:
Fact #1: Some six million Americans are expected to buy a home this year. Six million people in the game make up a pretty big game.
Fact #2: There is still over $23 trillion of value in u.s. housing stock. Home ownership continues to be the basis of our wealth in this country.
Fact #3: The housing market cannot help but grow. Our country’s tremendous wealth, liquidity, and entrepreneurship will continue to drive our economy. 70-100 million people will be added to our market in the next 40 years.
Fact #4: Real estate is cyclical. The biggest fear in good times is that the fair weather won’t last forever—because it doesn’t. But the reality of a cyclical real estate market also provides its brightest hope in bad times—foul weather won’t last forever either.
Fact #5: 2008 is the best year to buy a home in 35 years. 1973 was the last time mortgage rates were this low in a buyer’s market.
Fact #6: First-time buyers have a real advantage in today’s market. First-time buyers can buy at a reduced price without having to sell at one too.
Fact #7: First-time buyers lose money while they wait on the sidelines. First, renters typically pay more state and federal income taxes than homeowners with a mortgage deduction.
Fact #8: Homes sell when they’re priced right and show well. Buyers are looking for value in today’s market. When sellers make their home’s value obvious, they make a sale—it’s as simple as that.
This is an abridged version of the Power Tools newsletter sent to my referral partners.
April 18, 2008 at 4:38 pm
My favorites from your list are #5-7. The buyers that are calling me are very mindful of the current market conditions, and want to take advantage of the great rates and inventory.
April 18, 2008 at 6:09 pm
I have to agree with Dru. I can’t believe how low interest rates are and the deals to be had, especially here in Las Vegas. People are going to be kicking themselves in a few years for not buying now.
April 20, 2008 at 8:50 pm
Shailesh, this is an excellent list of looking at the glass half full side of the situation. Many retirement places or second home places like Florida and others seem like good buys now. It’s difficult for many consumers to deal with the economic uncertainty, and these buying opportunities could be missed by many.
April 22, 2008 at 9:03 pm
Very nicely put! Great to see the encouraging news rather than all the negative! Thanks! Now if we can just get your post some national media play!
July 4, 2008 at 7:52 pm
Great post Shailesh. Its all true, good news and very profound. My favorite is #5.