Still Stormy

Most people seeing a tornado for the first tend to stand still and stare at the awesome power of nature.

Something like a deer caught in the headlights of an oncoming car. The second time most people see a tornado, they run for shelter, because they remember the mess made from their first experience. In Colorado, it’s been 20 years since the real estate industry weathered a difficult market. Most people in the industry today, Realtors, lenders and title insurers all are still staring at the market like a deer in the headlights. Those of us that have that second time around experience need to lead the industry forward.It’s time to move on. It is too late to seek shelter, and it really is time to get moving again. While the capital markets are still recovering and mortgage loans are certainly not easy, they are not impossible either. The FHA is now heavily funded, so Realtors should find a lender that gets FHA, and start selling houses using FHA financing. The entire industry needs to get on the phone and start talking to people about buying. It’s hard work, fraught with rejection and MUST be done. NOW! Smile, get your attitude arranged, get over that hang-dog look, and get to work. To the frightened and lethargic public reader of this blog, if you need a home, go buy one. The reasons to buy a home are still the same as they always were: security, empowerment,a hedge against inflation (not an ATM machine), a secure place to raise a family, and a tax shelter.

I did a quick survey of a thousand homes purchased in July in the Denver area with a sold price between $100,000 and $200,000. 14% were purchased using cash. ( I expanded an earlier effort of 100 homes.) I believe it is reasonable to assume that the cash buyer in that price range in the Denver market place is an investor; buying low with an expectation of selling high for a sizable profit in 3 to 5 years. If savvy investors get it, why isn’t it true for the average Joe that needs a home?

With home builders on the sidelines for the near future, the previously owned home inventory will begin to appreciate in value as competition enters the market. Even today, many bank owned homes in good condition are receiving multiple offers.

Today, in the United States, there are over a million Realtors. If each Realtor begins a relentless effort to show potential buyers how to buy now and win, we can change the attitude and move the economy forward.

Or, we can stand still watching the oncoming tornado (or headlights) and get run over. Seems like simple choice.

Read more on this topic:

Housing’s Perfect Storm (part 1)

The Upside of a Foreclosure Market

Written by Larry D. McGee, Denver Realtor - Visit Website Sphere: Related Content