An Opinion About the Real Estate Market (Corvallis and other markets)
Opportunities in the Corvallis Real Estate Market (and possibly in many other markets)
I replied to a face book post and was so inspired I may have gotten carried away. I wrote a lot about my opinions about the current market, the past market and hopefully will lead some to think about future markets. Corvallis and the mid-Willamette Valley has not been unscathed by the recent real estate downturn. However, all is not doom and gloom. This is what I wrote, for what it’s worth:
Every market has its opportunities; it’s how you position to take advantage and where you are in terms of need…
The insane market of the mid-2000s was not normal, it was an anomaly. So expecting or even wishing for a return to that type of craziness just doesn’t make sense. Labeling a market as hot or cold doesn’t make sense either. It depends on for whom it’s “hot” or “cold” and the perspective of the parties involved. We had situations here where buyers were so priced out they couldn’t move quick enough to buy. Yet, sellers made “killer” returns.
Now, it’s a better time for that buyer and for long term investors, they have more choices and can make intelligent decisions instead of jumping in because everyone else is. Those that have held their real estate long term have still made a return on their investment (think of the down payment and closing costs when you think of the investment). And, all the while have had a roof over their heads (for the most part).
There was a huge shift in the attitudes of buyers/sellers in the mid-2000s where the public seemed to think that real estate could be a short term investment (evidenced by a lack of good judgement eg. buy high, hold short, flip, use consumer credit to finance purchases and so forth). That attitude created a driven market that was out of whack with reality. For real estate to be considered an investment it needs to be a long term proposition. An important shift occurred, at the root was the loss of jobs, confidence in the financial markets and in particular housing crumbled and the market turned.
Owner occupied real estate really is an investment in life-style and has some “investment” benefits that renting does not provide (forced savings in the form of principle reduction; tax benefits and over the long haul the potential to appreciate), while still providing the all important shelter. With long term interest rates somewhere in the mid 4′s, those that can buy, who want to be homeowners, and who believe they have the financial fortitude to buy, may be well served to consider a purchase. Home prices are more affordable in many market; inventory is available in many markets, those factors coupled with record low interest rates create opportunity in today’s markets.
This is a market place where buyers and sellers can benefit from the long term knowledge of an experienced agent. What we do is not as easy as it may appear. As in every industry there are those that have a strong commitment to their craft and those that do not… Buyers and Sellers would be well served to seek out and agent that approaches their business as a business.
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