There are some interesting dynamics, of the human kind, in the economic recovery that I believe are going on. I am not an economist but the numbers are all moving in the right direction. So lets focus on the human aspect of the recovery. We know that home prices in many areas are still falling and in other areas are still low and not recovering. So why is housing lagging behind?
My first thought, is jobs. Why take on the responsibility of a home if you are unsure about your job or the ability to sell if you are transferred? This is a major issue and one that I am afraid will be with us through 2011 and parts of 2012. But this is only part of the story.
My second thought, with all due respect to the economists at NAR is that for 2 plus years they have been saying now is the time to buy and were wrong . Frankly, as prices and rates dropped I thought buying was a good idea too. But we had not seen the bottom. The depth of this contraction in the economy only became known is pieces. So now when we say ,"Now is the time to buy ! " we have a credibility problem.
Finally and maybe most important there is a leading edge mentality that is going on. Tons of folks who got into stocks and real estate during the boom were following trends. As the trends played out they were stuck. They were not leaders they were followers. We see this in our market today. There have been numerous posts and an article in the Wall Street Journal recently about the big number of buyers paying cash for homes. These are the leading edge folks. These are the investors who have done their home work. They know the crisis is over. They are getting the bargains. The great majority of folks being followers are still listening to "yesterdays" news about housing. For us in Real estate who see the leading edge it can be frustrating to work with folks who are afraid to pull the trigger.
What do we do as Realtors? I am making the Wall Street journal article about cash buyers one of my talking points to buyers. Since it is a statement of fact and not opinion it is a powerful tool. I am using NAR numbers but am talking about the immediate economic benefits of home ownership. I do quote history about prices going up. But I am focusing more and more on the one in the hand. I do believe it is a great time for folks who could not previously get into the housing market to do so. So it is OK to be on this leading edge. Maybe you are worried long term . Let your Realtor show you how short term owning a home makes great economic sense.
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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog
On line at www.allmountainrealty.com Call at 706 579 1098
