Real Estate Investing

I do not have a degree in macro-economics, trigonometry, accounting, investment, banking, financial prowess,  matrix algebra, or computational data analysis.  I am not an economist.  I am an outsider looking in at the massive amount of statistics that determine the national housing index. 

What I do know is that my cell phone has begun ringing again.  I’m getting calls from both people I know and those I’ve never met asking about buying property.  Several months ago, my calls were from sellers who were nervous and scared about the value of their homes going down the tubes.  Today my calls are from buyers who have figured out that yes, the percentage rates on loans are incredibly low and yes, home prices may have hit bottom.

This renewed interest in home buying seems to be playing out on the national real estate market, as well.  Real estate guru and senior editor of Realty Times Blanche Evans is reporting that the falling prices of homes are leveling according to the real-time housing index.

Days on market have gone down from 122 in February, to 119 in March to 111 in April, which is also a positive trend. Miami and Detroit experienced the longest days on market.  Austin, Texas, sold homes the fastest at 67 days on market.

That means it’s time to carefully watch inventory build-up. It’s spring so it’s natural for more homes to come on the market, but it’s begining to look like some markets may have bottomed in February.

When we see the market hit bottom, it has but one direction to go… back up.

The best part is that the buyers who are now calling are smarter.  They are talking to lenders before asking me to drive them around exploring neighborhoods and walking through houses.  Their agents are performing the neighborhood comparables to be sure the sales price is fair market - today’s market not last year’s.  This puts buyers in a really good position to negotiate for a great price and it’s a relief for homeowners to be finally able to sell and move forward with their lives.

Here’s an overview wherein some agents agree the market has hit bottom, while others are not so Mary Sunshine about real estate.

Naples Real Estate Blog: Market Hits Bottom!

(Wisconsin) Real Estate Market Hits Bottom: See the Numbers!

The Housing Crisis is Over? Not in Phoenix

The Gory Details of Real Estate: A Bell Will Not Ring When the Market Hits Bottom

It reminds us that all real estate is local.  Just because one area of the country may flourish, another may still be facing hardship (but it will get better!).