How’s the market? Well,it depends….
Posted on August 27th, 2010 by Nicole Beauchamp
The minute I utter I am in real estate – it is one of,if not the FIRST question I am asked. The answer-well, it depends on if you are looking to buy, sell, rent or invest in real estate but most ultimately –it depends on YOU.
First things first-the market is what it is. There are opportunities in so called “good” markets as well as the “bad” markets. What drives you ? YOU have to determine what you need, want and what your number is-whether you are buying, selling or renting or seeking an investment property.
A lot has been in the press this week about housing statistics in the United States. There was a prominent article in the New York Times this week Real Estate’s Gold Rush Seems Gone for Good – that essentially declared housing (aka real estate) as a primary wealth vehicle was no longer the case. Other recent articles, citing quotes from around the US (from real estate professionals), declaring the market is HORRIBLE. Another recent article this week, from the Wall Street Journal Manhattan Gains Even as Broader Housing Market Stalls speaks of how while for the REST of the country, the market doesn’t seem so hot, things in Manhattan are improving. From what I have seen and heard-the WSJ article is pretty on point .
Someone recently quipped its no longer about being “ready willing and able” , but it is entirely about being “realistic willing and able”- where the realism in pricing expectations indicates the level of readiness. And they are quite right. Pricing is paramount, along with exposure-price too high, and it’s a stigma that is hard to lose-you become that overpriced comparable everyone else uses to get a price reduction or demonstrate the value of some other property.
For most people, the real estate they own does comprise the vast majority of their net worth, but it wasn’t necessarily purchased with that intent in mind. It was purchased as a place to live, to make a home. It appreciated in value, over time. Purchasing a property as and investment, is an entirely different aspect, and can be intricately more involved than purchasing something to reside in.
Mortgage rates, are still at amazingly historic lows, yes.However, you must qualify for financing-additionally, an EXTRA quirk, in the maze of Manhattan real estate- we also have to be sure that you can get a loan for the purchase of your target property (for sellers, one of the first things we must look at when considering to list the property-is for any potential red flags in your building, so that we may work to address them earlier, rather than later!) When you are considering buying ,you must do a thorough analysis of your financial situation, which quite frankly if you’re considering buying a co-op is a necessity regardless-but ESPECIALLY if you are currently renting, it always makes sense to do a renting versus buying analysis- homeownership isn’t for everyone, for a variety of reasons.
Real estate has long been a vehicle towards wealth building, however-the recent boom changed perceptions, where real estate may have been seen by some as a freeway to increasing net worth, versus taking a long range approach. A speculative approach to anything isn’t an avenue for amateurs.
And if you’re buying something to live in-is it not most important that it fits into your lifestyle (including the appropriate affordability for your particular financial situation)?
If you are considering a change-it is imperative that you engage a team of professionals (brokers,attorneys,accountants,mortgage professionals) whom you trust, and who work in YOUR best interests, after all, with out YOU, where would we be ? The ME in Team is YOU.
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My debut on the Warburg Realty Blog- invite comments,discussion and questions -as always !