I just read a quote from Lawrence Yun, the chief economist for the National Association of Realtors.
“Distressed property sales accounted for 34% of all existing home sales in the fourth quarter. But NAR chief economist Lawrence Yun said the sales data is encouraging and points to signs of a recovery in the market.”
Worth repeating here and asking you – do you believe that?
The well written article goes on to give a rosier outlook for housing, and I know that I am seeing the same thing Intown.
On any given street, that 66% number is pretty steady. Now, if I showed you the stats for Adair Street in Decatur vs. Adair Street in Lakewood, then you would realize that all real estate is hyperlocal.
66% is worth repeating – mass media reports 34% distress, The Intown Insider reports that 66% of all real estate transactions are stable, normal and counter-balanced win/wins…
“Hyper-local”, or “hyperlocal?” Who cares? Today’s real estate market is being evaluated in the mass media by dated information from Q4 2011.
So what are the Intown Atlanta and Decatur trends, right now? Is housing a buy everywhere? What are the edges for buyers to explore on any given transaction?
1. Affordability could reach or may have reached a cross-generational high, and today’s affordabilty is the best since I’ve been alive – I am 45 years old. Even though interest rates have creeped up about a percentage point since October, affordability is an advantage that buyers will have for 3-5 years, at least.
2. The Fed’s monetary policy will keep things pretty steady in the mortgage markets for at least 3-5 years
Three trends to watch in 2011:
1. your friends and neighbors are becoming real estate investors and many are hedging their bets against the equity markets with real estate holdings – second houses and condos, multi-family and commercial properties
2. prices will begin to rise in more than just 4-5 Georgia zip codes, but not necessarily in the metropolitan Atlanta statistical area, the 14 +/- metro Atlanta counties, will drop another 7-9% – thereby driving even more affordability for 2011 buyers.
Just don’t count on that price decrease all of the time in certain excellent areas that have become sellers markets – remember, nearly 1 out of 4 sellers get what they want, quickly, and move on
3. more and more people will be getting their cash right, and realize that too much debt is a bad thing, and real estate supply will continue to be greater than demand
So, buy now if you believe that real estate is an able investment for you – start with primary residence – start with the rent vs. buy calculation.
Buyers have remarkable advantages. Buyers can get in and out of contracts easily and with no penalty, as long as they know what they are doing.
If they don’t know exactly what they are doing, then they should call me…
If you ask my 3 year old daughter what she thinks of all of this, then she’ll tell you to buy land, they stopped making it.