Two weeks ago I attended Howard Brinton’s Star Power Conference in Denver, Colorado and received some good information on where the real estate market is heading.
The panelists that I got to hear from were Dave Linegar President of Remax, Larry Kendall owner of The Group, Gary Keller owner of Keller Williams, Jim Gillespie President of Coldwell Banker, Alan Domb from Pennsylvania and the President of Prudential Properties. This was an astounding group of men that shared different but same opinions.
· Point Number 1, - email or speak to your congressman or senator to extend the tax credit past November. This $8000 tax credit is set to expire in November and so far this year, this program is stimulating home purchases. While your at it, ask them to extend the credit to any and all home purchases for owner occupants
· Number 2, - the home/housing market is local. What is happening in Florida is different than Colorado. All panelists blamed the media for sensationalizing the housing doom. Yes the market is bad in Florida, Nevada and California. Those states are making the headlines for the national news. States like Texas, South Dakota, Missouri and the Carolinas are actually doing well. Colorado, Arizona and Oregon are stabilizing and are hitting bottom. In Colorado Springs, sales are only down 3%. Inventory is down 19% from last year. This is recovery. All of us need to know our markets.
· Number 3, - full recovery will not be here for 5-7 years. All panelists agreed that it will be from 2014-2016 before we return to 2006 prices. The recovery will be slow and methodical. It will be a 2-3% per year process. The higher end in all markets will be the last to go up.
· Number 4, - baby boomers and genx’rs will continue to have buying power. This part of the equation will stress the lower ends of the market. Blend in the new immigrants to our country and affordable home options will be stressed. Many baby boomers want to scale down. Many 1st time buyers will want the same homes. Builders will be unable to fill this niche because costs will exceed the value. Land & materials have not gone down.
Summary- now and the coming 1-2 years will be a great time to buy a home. Prices are at 2003 levels. Interest rates remain low. Knowledge is power! Know the market and wise investments will follow.
Thanks,
Brian
