While our national real estate market has clearly been on
the mend for at least the past year, building positive momentum month after
month there are still many potential buyers who refuse to believe what they
read, hear and see as it relates to housing.
These doubters are scared
to their own detriment. Which brings to mind this saying " The
error of optimism dies in the crisis but in dying it gives birth to the error
of pessimism. This new error is born, not an infant, but a giant." Which
is exactly what has happened to many who now look at home ownership as high
risk.
So while they will believe what they believe, lets look at
some simple clear signals that in my opinion tell a very different story.
1-For the first time since the housing collapse most areas throughout
the nation are experiencing home price appreciation. Many of these have
realized year or year gains of 10% with estimates for continued positive gains ranging
from 3-5% yearly for the next five
years. Home prices are going up for real which cannot be disputed.
2- Those who are still fearful have decided its better to
rent then own. As a result of this phenomenon rental rates have been rising at
double digits rates year over year. So it should come as no surprise that
investors are buying up houses at a steady clip because they know its better for
them to own and collect rent because there is no shortage of tenants.
3- When you look at
builders stock prices you will see that many have rebounded quite nicely the
past two years and since the markets looks forward not backwards its been
signally investors believe the turn around in housing is for real.
4- Another way to gauge the housing markets is to look at housing
related commodity prices, for instance, look at lumber prices which collapsed
in 2009 but have since rebounded to their old highs. If you do not believe the
housing industry is in recovery how do you explain such price appreciation if
there is no demand? Where is all the lumber going? What is it being used for if
not the construction industry?
5-Yearly housing starts have risen to a little over 1
million, almost double from their lows of just a few years ago but still half what they were
at the height of construction. So housing starts are rebounding and have room
to grow.
6- Another telling signal the real estate market is on our
minds is seen in the rise of Internet searches concerning real estate which have
doubled the last few years.
7- Then who hasn't heard the local stories about houses
hitting the market one day, getting multiple offers the same day and going to
contract. Its happening all over the country.
Granted these may not be the same indicators that the main
stream media report on when talking about the real estate market rebounding, but none
the less they are worthy of consideration. Sooner or later all these bits and
pieces of information will come together to form a real conclusion which will
be " I don't want to say I told you so , but I told you so".
Peter ReJune
Realtor Broker Associate
Keller Williams Palm Beach
561-793-2493
Peter ReJune
Realtor Broker Associate
Keller Williams Palm Beach
561-793-2493