It’s time to B-R-E-A-T-H-E. The caving and excruciating death of the real estate market in 2006 appears to be coming to an end as expressed by experts. What a welcoming sign for our country as it’s been a long time coming. Our country as a whole has not experienced a downturn such as this since the Great Depression, with jobless rates at an incredible high, bankruptcies and foreclosures climbing, and the ceasing of construction. What is being seen now is a slight turnaround, enough of a turnaround to stand up and take notice, for sure. With sixty-seven percent of Americans feeling more confident to purchase real estate and are feeling that it is a good time to buy, and with real estate prices finally stabilizing, the once fearful and hesitant investor or buyer have come out of the woodwork and are purchasing properties within their means and are financially in a position to do so. These purchasers are confident in their buying power, with many being cash buyers, and some obtaining mortgage loans even with today’s strict lending requirements of private lending institutions. Many who were able to avoid the real estate crisis by not being suckered into prime rate mortgage scheme held off on making the decision to purchase until most recently, and seeing this trend now indicates a positive recovery. This trend we are experiencing now, is called a ‘buyers market’ and is characterized by a huge influx of inventory, realistically priced properties, with more sellers eager to sell than there are buyers, but the percentage of buyers out there is indicative of an upswing in our economy for 2011. And residential real estate is just one small part of that equation.
There is such a large inventory of commercial real estate as well and there have been many instances in 2010 and 2011 where companies looking to move to larger locations were not able to do so due to such high pricing a few years ago, and are now in a position to do so by purchasing for example, improved commercial buildings from corporations that filed for Chapter 11’s and were forced to close. Back during the peak of the recession, it was virtually impossible for companies that were struggling to purchase as price per square footage for these commercial pieces was ridiculous and completely impractical. Now what is being seen is a positive recovery with colleges and small businesses seeing once-in-a-lifetime real estate opportunities and they are taking advantage of these great opportunities.
Simply put, now is the perfect time to consider purchasing if one is in a position to do so. All buyers need to remember that they are indeed in a most negotiative and enviable position as well, because these days, a seller knows if they don’t accept a buyers offer it may be the last one for quite some time. Once a purchase is made, be smart and hang on to that investment. No need to rush and flip the property in a year or two; remember the rapid gains we experienced aren’t coming back for a long time, if ever.
Now that our economy’s growth appears to be on the rise, the focus needs to be shifted and concentrated on rebuilding, renewing, and embracing the realities of our financial system and its future.
About the Author: Tim Ryan is a real estate agent with Amerivest Realty in Naples, Florida. Tim specializes in helping buyers and sellers in Naples Park. Check out his site where you can details on Naples Park real estate.