Published: March 11, 2008 04:59 pm            

Real estate market healthy

To the editor:

In response to the “Real Estate Watch” column printed in your paper on Sunday, March 2, I would like to give you a different perspective on the current real estate market.

Today’s consumers are watching the national news media and many are remaining on the sidelines and not purchasing real estate. First and foremost is the misconception that prices will continue to drop.

On a national basis, last year was the first year since World War II where prices have fallen in our country. This price drop was 1.4 percent, according to the National Association of Realtors. Locally in Whitfield County, according to the Dalton Multiple Listing Service, the prices dropped a whopping one-half percent. The media needs to be praising the resiliency of the market with prices holding steady after a fabulous “bull run” that lasted nearly 10 years.

Do you know the stock market does not even use the word “correction” unless the stock market goes down 10 percent?

The resiliency of the real estate market is the real story that should be told. But, of course that does not sell newspapers or magazines or get viewers for television. Since 1972, according to NAR, the price of real estate has increased an average of 6.2 percent every year. According to the

Dalton Multiple Listing Service, since 2003 in Whitfield County prices have appreciated nearly 13 percent — including the “down” year in 2007.

Another misconception is that mortgage money is not available. We are now back to doing mortgages the way we used to do it. The borrower must document their income, employment, assets and liabilities. I think most people in our industry and the public welcome this return to normalcy. This will enable real estate to be healthier in the long run.

Very few people realize how strong real estate is in our country and our area. There are approximately 75 million homeowners in our great country, and a full 35 percent of those homeowners have no mortgage. Yes, one in three homeowners in the U.S. own their homes free and clear. And according to NAR, 50 percent have fixed rate mortgages, six percent have government loans (FHA or VA) and only nine percent have subprime loans.

The market that we are currently in is similar to other corrections that have occurred in our industry. First, the number of homes purchased drops, causing the inventory of homes to rise. Then prices level off and it becomes a buyer’s market. Then, buyers jump back into the market and prices take off once again.

We are currently in that situation with a high number of homes on the market and a buyer’s market. Listings for sale now are more competitive than ever. Homeowners are having to price their homes to sell and get those homes in the best condition possible.

If most experienced real estate investors are looking to buy now, why shouldn’t everyone else? If you are renting, now might be the time to make a move into real estate. The interest rates are still at historical low levels, and there are a great deal of homes to choose from. Don’t let the negative media discourage you from home ownership.

All of us at Coldwell Banker Kinard Realty are committed to assisting our clients, whether they are first-time homeowners, expanding families or investors, and we encourage them to take advantage of all the above mentioned buying opportunities. Now more than ever is the time to invest in real estate in our community.

Mike Maret

Broker, Coldwell Banker Kinard Realty

        

• Click to discuss this story with other readers on our forums.