I know you think that as a real estate agent I would ALWAYS be saying that 'it's a great time to buy' yet in this instance I am not going to tell you that.... I am actually going to tell you that IF you are wanting to buy your first home, buy a bigger home or buy your first investment property... now is a good time... AND ... when you look back at this market in the next few years you might come to the conclusion that 2008 WAS the best time to buy. Rather than me simply telling you things that you already know I thought I would delve in deeper to see if I can find some correlations between today's market and some real estate/stock markets of the past. The good thing about relating today's market to a previous market is that there is no ambiguity. They are strictly numbers and statistics so there is no personal thoughts interjected.
So here are the statistics...
When the stock market plummeted in 1998 due to the Tech Bubble 18.1% from July to September the following year (1999) the real estate sales increased 14.8%. In 1987 there was 'Black Friday' where the stock market dropped 33%... the following year 1988 real estate sales were up 20%. After Vietnam and the Nixon fiasco the stock market dropped a whopping 34.4%... the following 3 years were up in real estate sales. 1975 was up 13%, 1976 was up 23% and 1977 was up 19%. In 1970 when they stock market dropped 17.25% the next two years the real estate market exploded with 1971 up 35% in sales and 1972 up 18%.
Now let's look at today's numbers... for the last 12 months (October 2007 - October 2008) the stock market has dropped 35%... and from September 2008 until today it accounts for 20% of that 35% drop! When you look at today's falling stock market and see what has happened in the past with similar markets you can see why this might be the best time to be buying a home...
Furthermore, the housing prices had been on steep decline for the last 18 months yet even those have steadied out... with actually a small increase last month of 2.3%. With so much turmoil in our economy and the $800 Billion Bailout in the works the market is definitely NOT a sure thing yet if you look at the past to learn from it you can see that it might just be... THE BEST TIME TO BUY...
Just a little insights that might get you into the perfect home... at a great price...while rates are very low... and inventory is still good... (inventory has been dropping this year quite steadily as well... inventory is DOWN 28.2% from August 2007 - August 2008...
At least now you have some statistics to use rather than simply whatever you hear on the evening news... or at the water cooler...
If you know anyone that I can help get more information into if this is the best time for them to buy please let me know. I am happy to help find eager buyers a great home that they can truly call their own...
So here are the statistics...
When the stock market plummeted in 1998 due to the Tech Bubble 18.1% from July to September the following year (1999) the real estate sales increased 14.8%. In 1987 there was 'Black Friday' where the stock market dropped 33%... the following year 1988 real estate sales were up 20%. After Vietnam and the Nixon fiasco the stock market dropped a whopping 34.4%... the following 3 years were up in real estate sales. 1975 was up 13%, 1976 was up 23% and 1977 was up 19%. In 1970 when they stock market dropped 17.25% the next two years the real estate market exploded with 1971 up 35% in sales and 1972 up 18%.
Now let's look at today's numbers... for the last 12 months (October 2007 - October 2008) the stock market has dropped 35%... and from September 2008 until today it accounts for 20% of that 35% drop! When you look at today's falling stock market and see what has happened in the past with similar markets you can see why this might be the best time to be buying a home...
Furthermore, the housing prices had been on steep decline for the last 18 months yet even those have steadied out... with actually a small increase last month of 2.3%. With so much turmoil in our economy and the $800 Billion Bailout in the works the market is definitely NOT a sure thing yet if you look at the past to learn from it you can see that it might just be... THE BEST TIME TO BUY...
Just a little insights that might get you into the perfect home... at a great price...while rates are very low... and inventory is still good... (inventory has been dropping this year quite steadily as well... inventory is DOWN 28.2% from August 2007 - August 2008...
At least now you have some statistics to use rather than simply whatever you hear on the evening news... or at the water cooler...
If you know anyone that I can help get more information into if this is the best time for them to buy please let me know. I am happy to help find eager buyers a great home that they can truly call their own...
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