Wow, when they called todays real estate market a “shifting market,” they were right on target. It keeps shifting, and shifting, and shifting … Every time we turn on the news theres a new development that affects our economy and therefore the ability of buyers to “buy” and the sellers to “sell.”
SHIFT, the most recent book by Gary Keller, co-founder and Chairman of Keller Williams Realty Inc., begins with the following paragraph: “The Real Estate Market has shifted drastically and dramatically. Sales volume and the number of transactions have dropped significantly. Inventory has reached an all-time high. Buyers have never been more reluctant. Fear is rampant, anxiety is high, and people are getting out of the business left and right. Sounds familiar? Sure it does. The year was 1979!”
Does it make us feel better to know that this has happened before? What did we learn from it in 1979? Fast forward to 1987 and it happened again. Changing tax laws this time had a disastrous affect again. Well guess what? History repeats itself. Now we are faced with this again, in 2008 but this time there are real differences.
In 1979 mortgage interest rates topped 18 percent. Last week buyers were still getting approved at under 6 percent through local lenders. That is a huge difference! Todays sellers, with the help of their real estate agents, are becoming realistic with todays pricing, bringing our market back on track.
The real estate business is “cyclical.” An experienced real estate agent and a mortgage lender will understand this and be prepared to give counsel that is in tune with the current market. Remember though, the news you heard last week is “old news,” so stay in touch with your local, trusted real estate team (The Belt Team!) for updates on this ever changing market.
Not only have we assisted our clients in navigating the markets of the 1979 & 1987, but we are participating in seminars, conference calls, webinars, and many other training events to stay on top of the game to better assist you.
Real estate remains your single most valuable asset if handled correctly. Please don’t hesitate to call The Belt Team for all of your real estate needs. (703) 242-3975
Your real estate experts,
Terry Belt & The Belt Team