 If you turn on the news today and listen to latest on the housing crisis you'll find that in March, Georgia will add another 7300 or so foreclosure/REO properties in the next 90 days. While the inventory for foreclosures / REO properties increases (there are 214 available today in Lawrenceville), there is a great new trend occurring, that make me believe we'll be coming out of the Atlanta version of the housing "crisis."
The "F" word has enticed many buyers to look into this avenue. I get requests daily to look at foreclosures. Corporate, Bank owned, investor owned, REOs all can be filed under the Foreclosure name tag despite it being a bit of a misnomer. Time will prove this out, but I for one, think that the foreclosure market is about to get interesting. Why? I think buyer's are good determiners of value, and right not, most forelcosures don't make sense for buyers.
So why am I so chipper about the foreclosure news? Two Reasons!
- First, there's a new trend occurring with buyers. Sales are up this year from last as far as inventory and I am finding that buyers are interested in buying foreclosures. However, either the condition of the home will scare them or the incompetence of the bank/reo company/listing agent will send them to the hills to look for resales.
- The second reason is that builders have gotten smart. They've stopped building. Centex only has 20 inventory homes in the 13 metro counties that make up Metro Atlanta. Other builders are following suit. This decrease in inventory is limiting the choices of todays buyers.
In short, buyers have three options, FIXER UPPER with A Lot of Hassle, Resales in good condition (now the top 15% are selling, and inventory homes from builders.
If buyers start to shy away from foreclosures then the trend would be that more resales will sell which is really what the housing market needs. According to the NAR, 80% of the buyers in today's market have a home to sell! IF the resales start moving then so do the buyers.
Two concerns:
- The banks wise up, streamline the process and/or improve the homes, in essence stealing the buyers from the "public."
- Builders start building again even though there is no clear signal to start again.
Only time will tell.
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I usually don't repost what KW sends us in our E-mail, but I thought this was a great Story! I looked but could not find
the video for the today show.
Last week on the Today Show, during a segment on the national real estate market, CNBC's Jim Kramer
uncompromisingly stated, "now is the absolute worst time to buy!"
Concerned that remarks such as these from so-called experts might be pushing potential buyers to the sidelines?
Here's what Gary Keller, co-founder and chairman of Keller Williams Realty has to say about waiting out the current
market:
First, residential real estate is not a national market product - it is a local one. To say from a national
position that this is either a good time or a bad time to buy real estate is like saying the national forecast for the
U.S. today is 92 degrees - it is a useless and irrelevant perspective. What is happening in your local market is all
that matters.
Second, trying to predict when it is a good time to buy, or not, means you're trying to time the market. Staying
on the sidelines is the surest way for most people to never time anything correctly.
Last, and maybe most important - there are always two markets in every market. There is the market of properties
that are good buys and there is the market of properties that are not a good buys. Interestingly enough, this is true
in either buyer or seller markets. To categorically say that this is the time to buy or not is absolutely
ignoring the fact that every market really has two markets inside it.
Can someone tell me why Gary isn't brought on to combat these kind of false claims!
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