Updated: Friday, October 20, 2017
What are real estate professionals saying to homebuyers and sellers about current market conditions? The successful brokers and sales associates are talking about the strengths that exist in the market — not the negative media hype. Below are positive angles that appeared recently in the media and underscore why it is a good time to buy real estate.
Recent Quotes about the Positive Signs in the Real Estate Market:
Consumers Show Confidence in the Value of Their Homes
Americans are confident their homes are retaining, even gaining value, according to a nationwide telephone survey of 1,007 adult Americans conducted May 31-June 3, 2007. Here are a few stats from the survey’s findings:
55% say their home would sell for more money now than it would have a year ago.
74% of homeowners say they’re confident they could sell their home within the next six months at a price they think it’s worth.
85% believe their house will be worth more five years from now than it is today.
27% say they’re likely to purchase a better home over the next five years.
“Americans Express Confidence in the Value of Their Homes, Despite Softening Housing Market,” Business Wire, press release by Boston Consulting Group, June 21, 2007.
Consumers Show Confidence in the High-End Market
A 2007 Coldwell Banker Previews International® Luxury Survey of people living in homes valued at more than $1 million (or $2 million in California) found that homeowners are fairly confident in the future.
58% said they believe increases [in the value of their home] will continue over the next five years, and 36% said those increases would be significant.
40% said they felt comfortable enough with the housing market that they were considering buying a second home.
Excerpt from “Upscale Homeowners Confident in Future,” Real Estate Intelligence Report, Vol. 13, No. 27, July 2, 2007.
Commercial Real Estate
“This extraordinary run-up in rental rates is going to continue through 2008 and into early 2009. There is just not a lot of space around and not a lot of big blocks of space,” regarding the Manhattan commercial real estate market. “The hedge funds are sort of floating this market right now because they are willing to pay significant dollars in rentals. Manhattan is still the place to be.”
Howard Grufferman, vice chairman of Transactional Services, Grubb & Ellis Co., Reuters: Quotes from the Reuters Real Estate Summit, June 25, 2007.
Redfin’s Rebates to Buyers? The Answer From A Full-Service Perspective
During a “60-Minutes” interview on May 13, Leslie Stahl said, “Redfin very proudly says that they returned in rebates $3 million last year to its buyers. You can't boast of anything like that." Deborah Arends, a RE/MAX agent for over 18 years, responded, "Absolutely not. I don't know how to answer that one."
Here’s how the agent should have responded, according to John Featherston, founder/publisher of RISMedia, a national real estate trade news organization:
“Of course Redfin is willing to give money back to the customer because they’re not owed the money in the first place. The Realtor's marketing, negotiating skills, and reach into the market is the experience the seller is paying for and that will ultimately put more money in the seller's pocket!" Click here for more of Featherston’s response.
And Now … Positive News in Your Local Markets:
Many cities, such as Atlanta, Dallas and Denversat out the housing boom, and are now seeing prices rise instead of fall.
Seattle had the largest price gains over the past year, according to the S&P at 9.6 percent, and prices were also up in Charlotte, N.C. (7%) and Portland, Ore.(6.4%).
If buyers are waiting it out in some communities, they may be facing paying higher prices. Affordability speared to be the greatest factors in: Cumberland, Maryland, which had the largest price increase year-over-year through May (17.1%) is well below the national housing average of $212,300, at a little over $100,000. Other areas with double-digit price increases: Beaumont, Texas; Biloxi, Miss.; Salem, Ore.; Bismarck, N.D., Albuquerque, N.M., Salt Lake City, Utah; Farmington, N.M., and San Antonia, Texas.
Excerpts from “Home Price Outlook Darkens Nationally, Brightens Locally,” Realty Times, by Blanche Evans, June 27, 2007.