What a Difference a Year Makes
The Associated Press reports today that jobless claims have dropped to their lowest level since January and prices of household goods stayed low last month, positive signs of stability for the economic recovery. The Dow has risen above 10,000. Here in Maine, the Maine Association of Realtors is reporting another month of increased home sales.
As I recall, at this time last year, we were waking up every morning wondering what bank or financial institution was going to fail that day. It was a steady drumbeat of bad news, Lehman Bros., Fannie and Freddie, Countrywide, AIG, Wachovia and all of it wrapped up in election year rhetoric. Potential home Sellers sat in stunned disbelief as we tried to explain that they just weren't going to achieve prices similar to what their neighbors had gotten just a year before. Potential home Buyers just sat, paralyzed in fear by the cascading bad news.
What a difference a year makes. As it slowly sinks in that, just like with every other economic downturn in history, this one too shall pass, the mood of people walking through our door, both Buyers and Sellers is decidedly more upbeat. Sellers have come to terms with the fact that they are not going to get for their home in 2009 what they might have in 2006. But those that are moving on know that they will make it up when they buy. Buyers, aided by low interest rates, ample choices from which to buy and in some cases government tax incentives are very happily picking up homes that they could not have gotten into 3 or even 2 years ago.
Fixed rate loans have begin to inch up ever so slightly and many of the better homes have been bought, but new properties are coming on the market and priced according to the new reality as there are now comparable sales on which to base those prices. It is an excellent time to be in the real estate market right now. We couldn't say that a year ago.
Interesting real estate blog. I have bookmarked for future reference. Hope to see such good things again.
Posted by: Homes In Miami | March 03, 2010 at 04:45 AM