Real Estate on the Rebound

Successful investors are typically contrarians, whose actions contradict the news we all hear from the Internet and 24 hour cable news channels. What these smart investors will tell you is that today is a great time to buy and, yes, sell real estate.

The news produced by the mass media always tends to lag behind the reality of the market, particularly the bad news that will sell advertising. While the news will focus on bailouts and foreclosures, bear in mind that they are talking about consequences of actions that took place in 2005, and have little relevance to the 2009 real estate market. They fail to delve deep into the changes occurring today, particular the local issues most relevant to your real estate investments: our economy, Whatcom County’s reputation as a retirement destination, the 2010 Winter Olympics, and on and on. 

Let’s talk about some real statistics. In December of 2008, pending home sales increased. According to the National Association of Realtors (NAR), the Pending Home Sales Index, a forward-looking indicator based on contracts signed in December, rose 6.3% to 87.7. That is 2.1% higher than it was in December of 2007. The reality is that the market has already turned around - it simply takes time for consumers and corporations to see the writing on the wall and resume their normal purchasing and hiring activities.

So while the negative mood is mostly rooted in perception, there is no reason why you can’t take advantage of this market psychology.

If you are a buyer, you have an incredible opportunity to identify bargains in this market. By doing some careful research, it is possible to uncover undervalued real estate held by people who got in over their heads or panicked sellers who don’t follow cyclical trends and don’t understand that the market will soon resume its typical upward march.

If you are thinking about selling, you have an equally amazing opportunity in this market. Your chance to upgrade your primary residence or other real estate holdings by listing your properties wisely and then becoming a savvy buyer are fantastic. Too many sellers get bogged down by focusing on the top of the previous market and completely lose sight of the fact that they can convert the sale of their real estate into an increased equity position – while living in the home you have always dreamed about.

Don’t wait for the history books to tell you now is one of the greatest times ever to buy real estate. Long before the first book is published, take advantage of what is happening now – and get the deal of your lifetime.

Want more information about how this market can apply to you and your goals? Give me a call at (360) 739-4652 or send an email to theresa@reavis.org. I will help you take advantage of the current conditions to maximize your equity.