Ok, here’s what you will hear on the national news.
In the past few weeks mortgage applications were down because the interest rates went up. That makes sense to me.
What doesn’t make sense is why we have all time low interest rates plus a staggering inventory of properties for sale at absurdly low prices but nobody is buying real estate? It’s the ultimate buy low, sell high scenario, but sales of real estate are sagging…big time.
The only culprit I can come up with is the economy. People are scared. People don’t have jobs. Those that do are wondering if they will have a job next year. Tax returns for independent contractors like real estate agents look awful so they can’t qualify for a loan even if they wanted one. Nobody feels comfortable or confident about what the market will do. So they wait.
Even very successful people with secure jobs and ample savings who would otherwise recognize this time as a significant buying opportunity are skittish. Savvy investors who typically jump on real estate deals like we have right now are sitting on the side lines. All concerned and cautious about what the market will do and what will happen to the economy.
The economy is like a big black cloud hanging over head that makes people afraid to go outside. Until that cloud lifts and the sun comes out, we are going to be stuck inside.
What we need is economic recovery. In my mind, national economic recover equals real estate recovery. Does that make sense to you?