I continue to be astonished on a weekly basis now by the point of view of many buyers I end up talking to about the real estate market. What I see is denial. Lots of these folks seem to want to look at this market as a big storm that’s sweeping through the area. Sort of like Hurricane Katrina. OK, it’s going to wreak havoc for awhile and cause some damage but ultimately the storm will pass and things will get rebuilt and eventually things will go back to the way they were before. Normal. I think that’s incorrect. I think there’s a new normal being created and that normal will leave lots of folks behind.
I’ve had so many clients that simply gave up over the years. They just couldn’t imagine spending $450,000 for a house…no way they could afford that they thought and certainly they weren’t going to offer ABOVE the asking price to get a place. No way! These folks are now spending well over that mortgage payment in rent…and providing for their landlord’s retirement too. I had a client late in 2012 and early last year who was qualified for about $625,000 with 10% down. We wrote offers on several places and got rejected in the multiple offer environment. Finally, I had a listing coming up myself that I thought might fit them. They didn’t feel good about the floorplan and didn’t go for it. They decided to continue to rent. They’re done with the home buying idea. I think that’s sad.
OK, you can live a perfectly good life and rent. No question. You can take your money and invest in other things and if you’re a combination of lucky and very smart you’re investments will pay off handsomely and will set you up for retirement. Of course those investments could just as easily be dubious and risky…seems like they always have been for me when I buy stocks! The other option is you get over the fear and buy a place. Look what it’s done for all the people that have done that around here. What happens is you just live life…just like you would in that rental place. As the years go by your investment keeps growing. It’s as simple as that. For many, many people in 2014 it’s now or never. Seriously. When this storm passes the landscape will be totally different. Don’t get left behind.