Are We There Yet
Monday, June 06, 2011
Many people ask me and other real estate professionals if we have hit the bottom of the real estate market. My answer: “We’ll know six months after we have rebounded.”
Honestly, we do not know if we have hit bottom. Most seem to think home prices are stabilizing. Some are arguing that we are about to have a ‘double-dip recession’ and home prices will come down a bit more.
This reminds me of when I got into the real estate business in late 1978. At the time, interest rates were about 8% and Atlanta-area real estate was appreciating at about a 12% annual clip. Then, in early 1979, all of a sudden, interest rates hit 10% and banks were prevented from lending money due to Georgia’s 10% usury limit at the time. There were those who were claiming real estate would plummet. Others thought homes would continue to appreciate due to double-digit inflation.
In other words, nobody knew what to expect.
The best piece of advice I can give you today is this: If it feels right, do it.
Interest rates are very low. Home prices are where they were in 1999-2001 (dependant on what area of Atlanta you’re in). Even if you are fretting about selling a home for less than what you paid for it, look at it from this point of view – you will also buy your replacement home for far less than what you expected…so it all evens out.
- Scott Askew
Posted in: Intown Atlanta Real Estate News