Wednesday, April 20, 2011

Is it too soon to break open the Bubbly?


How beautiful on the mountains are the feet that brings good news! Boy this news sure sounded good this week! Did you see the cover story on Fortune Magazine for April "Real Estate is Back!" Wait...what did they say? Real estate is back? Sure sounds good doesn't it? But is it time to have the end zone celebration! That maybe a little premature...the article sure caused some response in the real estate industry. You should have seen all the Angry Birds (Couldn't help the pun!). Most seemed irate to even be thinking of any kind of recovery! Could we just hold on to the glee for just a little while? Sure, jobs are needed for sustained recovery, sure real estate is realizing negative appreciation in most of the country, sure foreclosures are happening everywhere, but is there anywhere I can hang my party hat?
Those that know me know that I am not an economist. They also know I tend to think of the glass as half full. But as I look around I do see some positive things occurring in the Albuquerque real estate market.
First there are more people able to achieve the American Dream of home ownership because of the entry level pricing. In fact there are more people able to buy upward because the average price has dropped to the most reasonable levels since 2001. That seems like a positive to me!
We have all heard that interest rates are really low.....go look.....really.... go look because they are really low! That means lower payments and more people able to qualify. That seems good to me as well.
In Albuquerque, more people seem to be out looking and the best priced homes in the best condition are being purchased. They inventory is becoming less and less....
Lastly (but there are plenty more reasons for me to be optimistic!) it just feels better. Remember that "perception is reality" thing?
Do you remember a fellow named John Paulson? He is the fellow that sold his real estate inventory when everyone had that euphoric feeling and thought that the real estate boom was going to last forever? Yes...that's right he made a fortune! During the last quarter of 2010 he is quoted as saying "This is the best time in 50 years to buy a home. If you don't own a home, buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home." September 27, 2010
Should we break open the Bubbly? No, perhaps not yet, but it sure is beginning to feel like we are back in the game. Well...the game hasn't actually begun but I can hear the players beginning to warm up!
Congratulations to all who are ready to begin to take advantage of this wonderful opportunity called the American dream! You are making one of the smartest moves of your lives!
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