Area 3 – Move-up buyers: Even though many people bought their home in the last two years, there are plenty of people who bought homes five years ago or more who’ve got equity and who saw prices getting higher and higher and maybe gave up on the idea of getting that bigger house when the prices went completely out of reach. Well the good news is that the bigger house they wanted is now on sale and it’s a far better spread than it was when their house was higher. You know someone who’s seen their house balloon to $300,000 and now it’s come down to $240,000 has seen the $400,000 house they really wanted come down to $320,000. They’ve got an opportunity now to save over $30,000 on the spread of moving up right now as opposed to what it was when their house was worth even more. Most people are still lamenting over the retraction in the market and fail to see the opportunity that is present now.
“The Market is Falling, The Market is Falling!”
NEWS FLASH – the real estate market is cooling off in many areas of the country. I realize this will probably shock you, probably not if you have been watching the national news lately. This topic is a favorite target of the media at the moment and is often coupled with the melt down that has occurred in the sub-prime lending markets.
So what a surprise – lenders are now actually going to require that a buyer have a decent credit score and be able to prove that they are a healthy credit risk. Imagine that! All kidding aside, we are seeing some of this slow down here in the Austin area as this article is written. The sub-prime issues, coupled with all the bad press going around recently are definitely having an effect on the state of the market locally. But what does all this actually mean for the average person in the market to buy or sell? One could be quite negative about the news being spread at the current time; however, there is one universal truth about marketing – every market has opportunity, you just have to mine for it. Based on this truth, this article is about what areas of great opportunity will exist in the coming months and how those opportunities can be used to your advantage.
Areas of Identified Opportunity:
Area 1 – Investors: Investors are very happy about the market conditions, you know the worse it gets the better for them. This market offers some fabulous opportunities for investors: prices are low, people are freaking out, rents are high, and there are more tenants on the street now (those people, who could qualify for a loan a year ago, but can’t now). This all adds up to an opportunists’ market for investors or even new investors.
Area 2 – First time homebuyers: Ok so I know you are saying “Wait a minute; you said that the sub-prime lending debacle would make it impossible for these sorts of buyers now, right?” Well no, not if they have a better than 660 credit score! This is GREAT news for first time buyers! The type of homes that were being sold to sub-prime buyers last year are now creating a huge buying opportunity for first time buyers who have been sitting on the sidelines and not getting into the game the last couple of years. Many of these homes are not selling currently creating a great bargain market for first time buyers.
Area 4 – Utilizing your professional connections to advantage: This is the type of market where people really depend on being able to turn to someone they trust. I’m happy to say that month after month my team and I get to help people make important financial decisions that effect their futures. We don’t take our relationship with you lightly and hereby pledge to give you the best in support and advice when you turn to us for real estate services. Whether you fit in any of the above categories or some other, we are here to serve you and to put your goals and aspirations above all others in that process. Thanks for your continued business and trust.
