Like any investment, buying low and selling high is the key to maximizing profitably. However, a volatile market makes it difficult to recognize when a stock is high and going down and when a stock is low and going up. The TV pundits seemed almost desperate this week, advising investors not to panic and searching for good news among the downward trending prices.
Real estate on the other hand, moves at a slower pace and monthly tracking by government and industry analysts are easier to understand and react to. Because of the 2008 crash, which was fraught with fraud at high levels and throughout the segment, we have more regulation and a more stable environment. We also saw a gradual climb in prices that took 10 years to get where we are.
Recent news on Real Estate suggest that low inventories, higher home prices and, “a new tax law that reduces incentives for home ownership have weighed on the housing sector this year.” Even NYC property prices are softening. September sales of homes in the U.S., were down 4.1% from a year earlier, “the seventh straight month of decline.” On the other hand, inventory supply is still low but rising, and there are “signs of strong demand.”
Softening sales and prices, increasing inventory and strong demand, mortgage rates still under 5%- all factors suggesting that this may be a good time to consider investing in real estate. If you are looking, don’t take a winter break – you will likely lose opportunities. If you are thinking of buying, start now and take advantage of this favorable confluence of factors. If you are selling, be realistic about your pricing and insist on aggressive and consistent marketing from your broker. For help with all your real estate needs, call us at Beninati Associates, we get results!
Source: The Wall Street Journal, October 20-21, 2018, Home-Sales Slump Deepens, pages A1-2.