Real estate is a roller coaster ride which follows the health of the economy. Today's economy has many people nervous which has a negtive effect on real estate sales. For most people, investing in real estate appeals to them when the economy is strong and vibrant. However this is usually when prices are high so investing in a high market brings about more risk, unless the investment is a long term one. In today's market prices have levelled out and, in some instances, dropped below levels of 2004-2007 when they were at there highest demand. Because interest rates have not risen during this economic downswing, this may be a good time to invest in real estate. Carrying costs are not as high as in past economic downturns so the stability of carrying a second or third property may appeal to those investors who continue to enjoy job security and who are less affected by the changing economy. First-time buyers are in a good position with the mortgage rates being as low as they are and with some of the incentives offered by the government. For many people this economy should be seen as an opportunistic time and they would be wise to get involved in acquiring property while both prices and rates are down. Historically real estate has its ups and downs but in this market investors have opportunities they haven't had in past economic downswings. For those who take advantage of this the future payoffs may be handsome.
Changing Economy and Real Estate Sales - Time of Opportunity
- February 13, 2009
CENTURY 21 Blue Sky Region Realty Inc., Brokerage*