Are We There Yet? My Prediction For The Real Estate Market
March 22nd, 2009 categories: Uncategorized
My fellow Realtors and I have noticed a change in the real estate market lately and it’s looking good. I’m attributing it to the lower interest rates, a surplus of homes on the market, and realistic sellers. Currently I have multiple offers on two of my listed properties. I have always heard that when the market turns upward it will happen much more quickly than when it declines. My prediction is that while we ride out all the foreclosures and short sales there will be little appreciation, but I do believe that sales prices are hovering at the bottom.
EVEN LOWER RATES THAN NOW OR LOWER RATES FOR LONGER?
Certainly, the markets reacted as expected and the rate on a 30-year fixed-rate mortgage for credit-worthy borrowers fell to about 4.75%. However, other two interesting reactions took place as well. Wall Street soared after the Fed showed it isn’t yet out of ammunition to fight the recession, but the value of the dollar sank, a emphasized the reminder of the risk the Fed is running by printing money to give the economy another push.
Apparently, FED still counts on the foreign appetite but the overseas markets have subliminally stated to the FED all about inflation risks further down the road.
Consequently, the savings of every American will be affected as the dollar races towards rapid devaluation and the money printing exercise will cause massive inflation when the economy picks up.
The Fed is living up to its commitment to do everything in its power to deal with the crisis ( in my opinion better than doing nothing ), but when the crisis is over, a new concern called Inflation will show up.
If you got this far reading my article, then you should be asking yourself “ SO !!! what do I do now to protect my wealth “ .
The answer is very simple, and it has always been the same answer. REAL ESTATE has been, is and will be the best investment that in the long term to keep the value of your new worth.
As we might experience an unacknowledged deflation about to end, we will be able to purchase real estate at the lowest prices of this decade with the historical lowest interest rates that will certainly be missed for a good time when inflation will hit.
What are you waiting for …. Sales and Close Outs are no longer only at the Malls.