Let's take the time to look at the bright side of the last couple of years; because of the previous six years we have a lot to be thankful for. As I write this, I know this will not be true for all, but it is my hope and wish that it will be true for all in the near future. If I am reading the tea leaves right, it looks very good for our area. You make your own decisions, dreams and successes.
Let's begin with imagining how tough it was for many from 2006-2011. Many will be happy, others will be both mad and sad as those were really tough years for most.
Look First At Jobs:
The main driving force of jobs and income in our area in the past has been real estate of one nature or another, i.e., home building, real estates sales, both residential and commercial, land development. During the time I was President of the North Dakota Home Builders in 1979 -1980, interest rates were 18-20%. I really learned the ripple effect of income from home building and real estate sales. It 's huge how many jobs it creates during and after a newly constructed or a resale home are sold.
During the housing recession of 2006-2011, many people lost most of their income, jobs, or went broke in the housing related industries. Our income dropped 50 - 75% and it was the same for many of us in the industry. Guess what! No-one bailed us out with more income, nor did we ask. We tried to work through it and most did, although some did not.
I wish this could be a great example for others; work at it and out of it. Now we should be very thankful for all the construction going on, even the occasional traffic jam, as it has created many jobs. Does anyone remember no jobs, no traffic and sometimes felt like our community had a ghost town look during the recession?
As a homeowner, take a look at your home equity as compared to 2007-2011- you will be pleasantly surprised. If you are into the stock market, as of this writing today, all time highs look very good for many. Many of your family, friends and neighbors now have jobs. Home equity, used properly and not abused, is a driver of new businesses and enlarging of others.
Under Water Homes:
There are homes that have loans larger than their values. Most of them are no longer under water and, therefore, are now saleable. Congratulations to all of you that were able to hang in there. I know it wasn't easy, but I'm sure, in most cases, it was worth it!
Foreclosure, Short Sales, And Bankruptcies:
For the people who could not hang on to their homes for one reason or another, now many of you can get back in the buying market. Many of the foreclosures, short sales, and bankruptcies allow you again to buy homes after a waiting period of 2 to 4 years, if you wish. As we all know, we need jobs and income to do so, and this is much better than in the past.
The rates are still very favorable and at near historic lows, but this will not last forever, so get ready for higher rates in late 2014 and into 2015 and beyond. This is as I see it.
For your information, a $100,000 loan at a rate of 4.5% over 30 years will have a payment of $506.00. You may figure your own amount by using $50.00 per $10,000 borrowed. It will give you at least an approximate amount, but don't forget to add your taxes and insurance. If you need more accurate amounts, please call me.
A Look Into The Future:
I look for real estate to normalize in 2015 with price increases of 3-7% a year. I do think 2014 will possibly see 8 to 12% increases. We will have many new buyers from the pool of foreclosures, short sales and bankruptcies plus the sellers of their homes becoming new buyers.
I also feel interest rates will trend up. All in all, the future looks bright.
If you have any real estate questions about buying and selling, feel free to call me. It may save you time and money! (928 533-4455)
Remember my favorite sayings, "Experience Isn't Expensive, It's Priceless!" and, "Selling A Home Is Easy, Doing It Right Is The Key!"
Lee Amble, Realtor/Consultant
NATIONAL REALTY OF PRESCOTT
Lee's cell: 928 533-4455
Jan's cell: 928 533-4488