Worst of Times - Best of Times

By
Real Estate Agent with BHG Real Estate - Kansas City Homes SP00229578 2007027091

The National Association of Home Builders (NAHB) reports that the real estate market is lopsided economy  improving in 76 markets across the country. They base part of that onthe number of building permits pulled and  increased prices in home sales over the last 6 months. Full article here. Both Joplin and Columbia Missouri made the list.

People are always asking me how the market is doing and when I think it's going to recover. You're probably asked the same question in your area. How do you answer that? It's the worst of times; it's the best of times. ♫ It depends. Where do you live? Why do you want to sell? Or are you buying? What are you buying?

Here's what I know: Interest rates are lower than they've been since the 1940's. Unemployment is higher than it's been since the 1940's. A lot of people can't afford health insurance. I see homeless people every day. I personally know people who have been downsized out of their jobs and worry about being able to pay bills. At the grocery store this afternoon, I noticed people carefully comparing prices before putting items in their carts. You used to be able to get 4 apple turnovers for $3.99 ($1/each); now you get 5 servings cut in HALF for $2.99 ($1.20/each). It may not seem like much but I'm seeing this everywhere I go. Paying more for less.

The only thing I know of that's selling for less now than it did 10 years ago is a house. Not all houses, but a large percentage of them are. I'm not convinced that the real estate market can correct unemployment or high priced food or even our health care dilemma. I am, however, convinced that this is a time in history when fortunes will be made.

Who will make these fortunes? Warren Buffet and Donald Trump have been buying right on through our present 'recession' but they're already rich. The average home buyers are getting great deals on their primary residences but I doubt that they'll get rich; they'll just live a little bit better than they were. So, who's going to significantly improve their financial status before the market turns?

My bet is on the landlords and the people who are buying, rehabbing, and then selling all those REO's. Flippers and landlords - that's who has the best chance of making a fortune in our present market. Think about it. Houses are dirt cheap. Interest rates are low. Fewer people are able to get a mortgage. Sure, there's enough housing now but builders have slowed down, or stopped building completely, for the last 6 years. Builders are not going to be able to catch up as the population increases. We will experience a housing shortage and rents and home prices will rise.

What do you think?

If you are considering selling your home, call 816-560-3758 for a private consultation to analyze value and condition in our current market.   

Kansas City Real Estate Year End 2011 Market Reports: Sunset Hill, Brookside, Waldo - more to come as time permits!

Maria Morton, Senior Real Estate Specialist, TRUSTED REALTOR  ♫ ♪  Contact Maria Morton Kansas City Realtor   
Leading Edge Society 2010  .mobile:816-560-3758 www.MariaMorton.com .
Search ALL MLS homes for sale      KANSAS CITY AREA SCHOOL INFO MO & KS  Professionals helping Seniors ♫ Visions of Dollar $igns Danced In Their Heads   ♪ Neighborhoods in Kansas City ♫  Historic Homes of Kansas City  ♪ Do You Know Jack? . ...*Information obtained from Heartland MLS is deemed reliable but not guaranteed. **This is an eclectic blog combining a little business with pleasure; please consult a licensed  professional before making life altering decisions. ♪♫   .   Maria Morton, Realtor©, SRES is a Kansas City Real Estate Agent licensed in MO & KS and affiliated with Prudential Kansas City Realty 816.410.5499.o Maria Morton Copyright © 2011 *Worst of Times - BEst of Times*
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*Information obtained from Heartland MLS is deemed reliable but not guaranteed. *This is an eclectic blog combining a little business with pleasure; please consult a licensed  professional before making life altering decisions. ♪♫  Scan QR code for homes for sale mobile app:

Maria Morton of Better Homes & Gardens Real Estate is a licensed Real Estate Agent in KS & MO. 816-560-3758 Mobile 816-410-5499 Office 816-410-6302 eFax 435 Nichols Road Ste. 300 Kansas City, MO 64112   Maria Morton Copyright © 2008-2014 

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Comments 9 New Comment

Show All Comments
Rainer
234,262
Doug Bullwinkel
NMLS #281609
Vitek Mortgage Group

We could also call this the good, the bad and the ugly.  I'm actually pretty optimistic about 2012 being a good year, a better year and not so good for some.  I think it's going to be what we make it.  For every problem there is a problem solver that will prosper.  That's the business we're in.  Have a great 2012.

January 11, 2012 02:00 AM
Rainmaker
483,864
Jordon Wheeler
J W Group Real Estate Sales and Service
The Jordon Wheeler Group

Hi Maria, I'm with you on who is benefiting in this market.  Landlords and flippers and I see a lot of foreign investment happening here in Georgia.  Cash buyers just gobbling up properties.  Owner occupant buyers have to really be on their game to be competitive.  You know the food that shocks me is the cost of potato chips in the small bags at the convenience store.  They have gone from 99 cents, to $1.09, to $1.19 to $1,49 in a matter of six months.  Anyways, 2012 will be a great year!  Best of success to you this year!

January 11, 2012 02:55 AM
Rainmaker
1,153,440
Cheryl Ritchie
Southern Maryland 301-980-7566
RE/MAX Leading Edge www.GoldenResults.com

I like the upbeat press release from Dave Liniger this week. We are seeing  some multiple offers on listings as we start the New Year. Nice sign!

January 11, 2012 03:07 AM
Rainmaker
158,785
Angelica Blatt
Selling the Monterey Peninsula over 15 years!
DeLuca Real Estate

2012 will be a better year for the housing market in my area. Interest rates are amazing and I have noticed that buyer confidence is up. I am not getting asked as often by buyers if this is the bottom.

January 11, 2012 07:59 AM
Rainmaker
521,295
Maria Morton
Kansas City Real Estate 816-560-3758
BHG Real Estate - Kansas City Homes

Doug, going with the flow decreases resistance.

Jordon, I'm seeing the same thing here in KC. Most of my investor clients are cash buyers. Owner occupant buyers learn quickly how competitive the market is now.

 

January 11, 2012 12:00 PM
Rainmaker
521,295
Maria Morton
Kansas City Real Estate 816-560-3758
BHG Real Estate - Kansas City Homes

Cheryl, yes, we are seeing multiple offers here as well.

Angelica, we won't know we hit bottom until we're on the hill back up.

January 11, 2012 12:01 PM
Rainmaker
980,919
Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

Maria, I'm not about to bet against you regarding who's going to make money from this market.  I've been telling people for a long while now that I wish I had a pocket full of cash to invest in real estate...I really don't want to be a land lord, but flipping homes is something I used to do years back and this is a good time for it.

January 11, 2012 07:35 PM
Rainmaker
521,295
Maria Morton
Kansas City Real Estate 816-560-3758
BHG Real Estate - Kansas City Homes

Yeah, I wish I had a pocket full as well, Nick. I know a great property manager; he could wire my money to a small island.

January 11, 2012 10:39 PM
Rainmaker
660,266
Pacita Dimacali
Alameda/Contra Costa Counties CA
Alain Pinel

Maria

I always say "Fantastic!" It's a great time for buyers -- low prices, low rates.

As for sellers, it' still fantastic if they're attempting a short sale because more banks are more willing to work with short sales than foreclose. That means less damage to their credit, and in a few years, they could try again.

For me, it's fantastic because I'm busy. And when I'm busy, that means I have business!

Fantastic!

January 18, 2012 03:24 AM
Show All Comments
Rainmaker
521,295

Maria Morton

Kansas City Real Estate 816-560-3758
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