Unless you’re describing the ultra-fit underpinnings of some freakishly good-looking celebrity body, you’re likely describing the lowest of lows in your grades, your career or your social life. Rock bottom is hard and, well, bottom-ish; generally, it’s not a good place from which to experience the world. But given the right outlook, these lows can provide motivation and opportunity. There’s nowhere to go but up, right?
This applies to today’s real estate market. And, yes, property values have, by broad definition, hit rock bottom. How do we know? Part of the answer lies in your class notes from “Econ 101: Supply and Demand.” If the market gets flooded with product and nobody’s buying, then supply outstrips demand and prices fall. You know all those foreclosures you’re hearing about? That’s the flood of supply to the housing market.
Foreclosures are homes people are losing because they can no longer afford to pay for them. In a foreclosure, the bank that owns the loan takes over ownership of the home. These foreclosures, while at an all-time high, are leveling off. For all the people who got into loans they couldn’t afford, and for all those who have lost their jobs, there sits a foreclosure.
With job cuts beginning to subside, many experts feel the major bloodletting is over and we’re going to glide along this rocky bottom for a time. Sure, there will be counties here and cities there that are still feeling for that bottom, but by and large, as an industry, you’ve got the housing market right where you want it.
Now, as a young person eyeballing the economic goings-on of a country adrift in a sea of financial missteps, your mind may be swimming with confused notions of what all this might mean for you. Don’t think, know.
Know that all other investment opportunities are still getting sorted out. Remember, the housing market started this current mess and it’s looking like it will be the first investment area to stabilize.
Know the interest rates for home purchasing is at the lowest point since the Depression era.
Know that the government is on one knee and offering first-time home-buyers that qualify excellent opportunities.
Know that money lenders helping you buy your first home have the full backing of the government up to at least 90% of your home purchase, dramatically minimizing their risk, so they’re cool with it – even today.
Know that you can now afford that home that was so far out of reach just 24 months ago.
Know that you can kiss your landlord (and rent!) goodbye.
And know that rock bottom property pricing is your ticket to the American dream.
Want a great deal on a house? They are out there. Banks are in the money-lending business. Banks do not want to own homes, yet they own thousands and are selling them at a loss. To learn more about these homes, contact real estate agents specializing in foreclosed homes or contact the real estate department of a large national back chain. You can also find these homes featured in monthly auctions in your area.
But remember: buying a home right now won’t make you rich. While property values have hit rock bottom, it may be quite a while before values go up again. The best part is, you’ll be putting your monthly payments into something you are buying and owning. Over time, this will be a huge plus for you. Rock bottom property values mean a rock solid opportunity…for you.
Start imagining yourself as a homeowner. It is within your reach.