As an industry we are struggling with this new real estate environment. Several years ago we watched buyers, sellers and agents change their view on real estate as an investment. Somewhere along the way people began to look at real estate as a commodity. Like pork bellies or oil shares consumers felt real estate was something you invested in one week, watched the market and traded like a stock weeks or months later.
The problem with that is, for awhile at least, this worked. A whole new group of real estate entrepreneurs were born. Flippers, speculators and wanna be land barons began to flock to real estate as the next ladder to financial independence. Then….we woke up and now find ourselves with the light of reality shining in. Those new to the business are now wanting to know what to do. What is reality now that the laws of gravity have been re-established.
The good news is that there is nothing new here. The basic reasons for investing in real estate are still in tact. The reason why people buy and sell real estate in our area are the same as a few years ago……..again. Rather than listening to all of the hype and overly negative media it is time to focus on what we do have and not on what we don’t. Yes this is cheer leading at it’s most basic form….but isn’t that what we need right now? Reminding people why home ownership is so important, why it is such an honor and how lucky we are to be able to purchase a home when in much of the world ownership of real property is but a dream.
It is time to bring common sense back to the market, our agents and consumers. Though the below is based on Kitsap County WA I’m sure you can find some parallels for your area:
We live in a very desirable area:
Reasonable house prices (Now)
Great quality of Life
Not in the city but only a ferry ride away
Good health care availability
Close to recreation
Interest rates are very reasonable
We have a relatively stable job market
We have a wonderful selection of homes to choose from
We still have sales going on
Homes are a good investment:
Home values are down fractionally compared to other investments.
Good tax benefits
Offers more control over your living environment
Good way to build wealth over a long period of time
Provides control over your living expenses provided you have a fixed mortgagem
Homes continue to be a good long term investment.