I have seen a lot in 32 years of real estate sales, and I feel an unusual sense of confidence considering what the last 4 months has brought about to completely change the real estate environment here in London.
The reason for my optimism is that buyers are now in control of the game, home selection is back again, and the prices in most cases have reversed the upward trend, some homes are asking prices not seen since 2007, mortgage rates are coming to the low levels from the previous years and with variable rates in the low 4% range, people would be wise to own their own home rather than pay rent, confidence or not, you will be living somewhere, and most likely, you will being paying a price for that accomodation.
Real estate today has proven again that it is by far the best investment an individual can make for people who have seen their equity investments drop by 40% in one year!
Our homes are in our control, we cannot control the price of stocks, no matter how profitable a company can be, stocks still seem to drop in value an incredible amount. Why?
People will look at real estate again as the safest and most reliable way to build wealth over time, and not as another get rich quick scheme.
We can live and enjoy our homes, while steadily paying off the mortgage month by month. Real estate is by far the number one way to safely build wealth.
So, in 2009, negotiating the deal will be difficult for many, but once you make that decision to buy, you will be on your way to wealth. Selling your home can be easier, once you realize what buyers will be truly willing to pay for your home, and an experienced agent will be able to determine this for you.