What Is Causing Buyers To Finally "Get Off The Fence"?
Ask any real estate agent, developer or builder about the current real estate market and they will probably tell you that things seem to be picking up. Allen Tate's new home division has had its best 4 months in the past 2 years. What most people want to know is what is causing the increase.
It seems that you will get a different answer depending on who you speak with about what has caused the increase in buyer activity. I am not convinced that anyone really knows. The news that we watch and read is confusing and contradictory. The professional economists can't give us a clear cut answer so how am I suppose to explain this to my clients when they ask about the market?
It may be that interest rates are starting to go up and this has caused many to go ahead and buy at today's prices. It could be that with summer right around the corner, people want to go ahead and move into the subdivision and school district of their choice and move on with their lives instead of letting the recession dictate their every buying decision. It may be that the stock market has been strong recently and that the consumer confidence level has spiked.
There are some things that we do know...Charlotte, NC still has over a 10% unemployment rate, there is a record number of foreclosures that are suppose to hit the market in the near future, the country still has a dysfunctional financial system and an appraisal system that makes sense to no one. The Middle East is stirring and almost every real estate expert is agreeing that we will not fully recover from the housing recession before the end of 2012.
What are your thoughts about the housing recovery?
