Real Estate is a Long Term Investment

The news media is all abuzz these days with information about what is happening in the real estate market. But if you rely on the media to tell you whether now is a good time to buy or sell, you may be missing some great opportunities. To get the proper perspective on the value of real estate, you have to go right to the source, and that means talking to the professional Realtors at Island Realty of the Low Country.

According to 2007 National Association of Realtors president, Pat V. Combs, “Perceptions about real estate have been skewed in recent months due to the overwhelming focus on national figures. While average sales and prices help us identify trends, the fact is all real estate is local – conditions vary greatly from one market to the next. Unfortunately that news is unreported.”

The current 10 year low home sales activity can partly be justified by the virtual non-existence of sub-prime loans, which accounted for about 20% of mortgage originations in recent years. But sub-prime loans were virtually non-existent 10 years ago also. Conforming loans have tighter underwriting standards – but those standards were also pretty much in place 10 years ago. What is limiting housing demand, therefore, cannot be explained by fundamentals. The soft housing demand is psychological. It is a crisis of confidence.

Lawrence Yun, NAR Chief economist says, “The bottom line on the economy is zero growth in the first half of the year, but 2% economic expansion in the second half of the year. Rising home sales and rising home prices at the end of the year will mark one heck of a recovery after so many unprecedented disruptions.”

We at Island Realty of the Low Country agree with Mr. Yun. We also believe that when the housing market comes back, it will do so with a vengeance. With that in mind we are busy getting ready for just that. We are optimizing our internet search engine placement, gaining dominance on You Tube and enhancing our interactive web site just to name a few of the actions in the works.

When you are ready to list your home or search for a new one, turn to your best source, the professionals at Island Realty of the Low Country. We are more than ready to help you sell your house at the highest price on the best terms and / or find that perfect home in that perfect neighborhood. Call us!!!