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The topic of the economy and the real estate market seems to be on everyone’s minds. Have we hit the bottom of the market yet? When is the right time to buy to take advantage of what is going on? These are some questions that I often hear.
There are some very positive signs that signify that our real estate fall here in the upstate is almost over. In a recent article in a national financial magazine, the author names the Greenville / Upstate area as one of the areas that will show signs of recovery first, most likely as soon as the end of the 2nd quarter of 2009. Another study, called the North American Cities of the Future, named Greenville as the top micro city in the US (email me if you would like the .pdf version of the study). Positive press regarding our area with respect to near term and future success in economic and real estate sectors is gaining steam.
More specifically, when you look at sale activity for residential real estate over the last 3 months, you notice a distinctively positive trend. And, even more specifically with regard to our business at Del-co Realty, we have noticed increases in contracts, closings, and call and website activity. There appears to be a more positive mood in general.
Another item of note is the effect of the First Time Homebuyer Tax Credit of $8000. Estimates are that around 2000 first-time buyers (nationally) will take advantage of this tax credit by purchasing a home before December 1, 2009. The overall impact of these buyers is much greater when you think about the fact that the sellers of the homes they buy in many cases buy another home as well, i.e. the domino effect.
The news is not all positive. The automakers are still struggling to find traction. There will be more changes to the lending and banking industry. There are many businesses that will have significant layoffs in the next few months. Many individuals are still struggling to pay their bills due to job losses and cutbacks.
So, what does all of this mean? Our current situation is very unique, indeed. If we are not at the bottom, we appear to be very close to it. Now may be the perfect time to buy a home. Prices will probably remain low until inventory levels equalize, due to increases in sales. But, as the positive news gains more momentum and the market begins to increase, the bottom will be gone. You’ll never be able to pinpoint exactly when we are bottom, because as you notice things improving, the bottom of the market is already behind you.
(Aaron Cole, the author of this information, is the creator of HomeSOLDin60TM, the simple six-step process that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.)