Chicago Relocation
 

The Housing Market and You

October 10, 2012

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John D’Ambrogio

Here are some comments from Baird & Warner’s own Tom Gill

Frank Sorrentino of Forbes wrote an article on July 7th titled “Four Reasons The Housing Market Is On Your Side.” Below are some comments and excerpts.

The current housing market has been a hot topic in the business world for a number of years now. However Sorrentino lists his four reasons why this is a good time to get back into the real estate market.

His first reason is Low Interest rates, which are at an all time low. When rates are lower, so are your payments. Therefore, your house is more affordable than it would be in an upward market. His second reason is depressed prices. This one couples with his first, low interest rates reason. Sorrentino says that because of the overall economic downturn, property values have gone down as well. Combined with the lower than normal interest rate, I believe these are two great reasons to buy now. Even Warren Buffet recently said “If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”

The third reason is consumer confidence. This is backed up with the fact that unemployment has decreased, and that some markets are improving. When looking on popular news websites however, it is difficult to say that consumer confidence is on the rise. When viewing CNN’s Real Estate page on July 2nd, the headlined articles include titles such as “Home sales slow slightly” and “Why millions aren’t getting housing help,” headlines that aren’t exactly encouraging. I do think that consumer confidence is improving, but I personally don’t believe it to be a significant factor.

Finally, Sorrentino talks about Supply and Demand. Because of an excess of foreclosures and high supply, there is buying power for the consumer to get the best deal possible in the current market situation opposed to when there is high demand and low supply, in which the seller has a majority of the power.

Overall I believe Frank Sorrentino is right; the housing market is on your side, and if a qualified buyer, now is the time to jump back into the real estate market.

 

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