- Housing in the dumper--continue loss of value
- Building slows
- High gas prices
- Interest rates higher
Over in Destin, we talked to a couple who offered 30% less than asking price on a gorgeous new condo (probably the premier property there) and it was accepted immediately. On 1.5 million, they offered one million. Makes me wonder if they had offered 50% off the asking price if they'd have gotten it. Definitely a buyers market, there is just so much inventory. But the realtors and everyone else seem to be keep a cheery face on it all. Building still going like gangbusters, but the developers are putting new projects on hold. Is it at the bottom?
And I wonder about places like Houston. Driving around the Sam Houston, I noticed lots of open commercial space by the airport business district (IAH). Where we live, The Woodlands, is building and building and has around 90% occupancy. Even within our relatively small community of 90,000 or so, different parts of the development are doing better and worse. It's kind of weird.
I'm wondering if now is a good time to buy rental properties (small, starter home types) or not. Any opinions?
Working for a realtor with the #1 company in central Indiana, I get lots of info from the office and from various national professional associations. Here in Indy, sales continue to plod along at a steady pace, in spite of the "down" market and ever-consistent foreclosures. (2005 was the company's 2nd best year on record, just shy of 2006 numbers, and this was in the midst of the "don't buy!" press.) NAR (National Association of Realtors) has launched a campaign to combat the bad press that the home-buying market has received in the last year.
ReplyDeleteWhile there is a glut of inventory on the market everywhere, there are still people shopping for homes. Just like always, buyers are looking for a good deal. My non-professional opinion, it's a good time to buy (make sure the price is right...probably lower than what you would think), but it is not the best time to sell if a person is looking to make loads of money. Sellers should be realistic about their home's value (ask a realtor for a Comparative Market Analysis...buyers should ask for this as well, to make sure they're not over-paying), its condition, etc. The market is settling back to what it should be, after years of over-inflated values in various parts of the country.
Clients are still looking for and buying rental properties. There are ALWAYS people who want to rent because they cannot buy, but they don't always want to live in an apartment. Don't buy rentals just to buy them...get decent prospects in reasonable neighborhoods, for the right price. It can be a really good investment and venture into the real estate market.
Just my non-professional, yet fairly well-informed, two cents. :)