A client recently commented to me that he can finally see the light at the end of this long dark real estate tunnel; the only problem is that the light is from an oncoming freight train! That pretty much describes the state of the current local real estate market. While sales may be up prices remain down and foreclosures persist. Its a buyer's market and a seller's nightmare. Even with a reduction in local county impact fees for new homes, new home builders still can't hope to compete with the foreclosure resales and short sales. While buyers with cash remain as kings of the local real estate market, there are definitely some positive trends upward for young couples buying their first homes on credit. With mortgage rates at an all time low this might just be the best opportunity ever for home ownership, but is that the right move?
What I find truly intriguing is the proliferation of new construction of large scale apartment developments. What is going on here? Do developers believe that there will be a large percentage of former homeowners who have either lost their American dream of homeownership or who have forever opted out of the merry-go-round known as home ownership through mortgage financing? If these developers are correct does this mean that the future of housing locally has forever changed. A very interesting question to ponder. Will we come out of this economic downturn forever changed on how we view the value and benefit of homeownership?
Listen carefully, I heard the feint sound of an oncoming train whistle. Can you hear it approaching?