Why it’s a Great Time to Buy Real Estate

by on January 31, 2011

The Housing market picture looks pretty grim –

  • 1 Million foreclosures in 2010
  • “Underwater” properties hit a record high
  • Construction jobs continue to decline
  • Mortgage rates inched higher

So why is this a GREAT to to buy???

First, you need to realize that real estate encompasses a wide range of markets:

Homes, apartments, hospitals, office buildings, strip malls, dormitories and other types of properties.

Let’s focus on residential real estate.

Here are 4 reasons residential real estate could be a bargain:

• Everyone hates homes – When the housing market is in the doldrums, people tend to avoid thinking about the value of their home.  Sellers complain they’re not getting offers and buyers bemoan the strict lending requirements.  However, prospective buyers should be contrarian and take advantage of a down housing market.

• Smart people are buying real estate – A prominent hedge-fund manager said in a speech last fall:  “If you don’t own a home, buy one.  If you own a home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.”  He believes that interest rates and home prices will rise this year, so real estate bargains won’t last much longer.

• Real estate performs well during inflation – Convention says Treasury Inflation Protected Securities, commodities, and real estate do well in an inflationary environment.  Real estate performed well during the period in the 1970s, when persistent inflation and high unemployment occurred.

• Demand may be coming back – Job creation and getting people employed are the two major factors in the housing rebound.  There’s much debate about when the job market will recovery.  Optimists say the recovery will happen this year, while pessimists say it won’t happen for several years.

The fact of the matter is, real estate performs well during inflation and economy is heading in that direct. Smart investors are buying which is starting to create more demand and there are many loan programs out there that are making it easier for the first time home buyer to get back in to the market. All these factors and many more are creating an positive impact on the residential real estate market.

If you or someone you know, is considering making a home purchase this year, have them visit my website at www.stunningsanjosehomes.com and sign up for my free home search by clicking on one of the icons listed on the page. They will be able to get up-to-the-minute listings of most of the properties in the 9 bay area counties. It’s fast and easy to do. Of course you can always have them call me at 408-839-2125.

Thanks for you referrals. Make it a great day!

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