Thursday, December 11, 2008
Insider's Market Update
Here's an update from deep inside the real estate community. I just returned from an event in Arizona where many of the top agents from around the country meet to share information about their local markets. According to agents in San Diego, they are experiencing multiple offers on lower priced homes and home buyers are having difficulty getting their offers accepted. In many parts of Texas, the market is holding strong. Florida still has its challenges. Prices in Arizona have come down by about 35%, but rents are very strong there so investors have some opportunities for good cash flow. The forecast is that we will be out of the recession by mid 2009, but it won't be reported until the end of 2009. According to mutiple sources, there is $11 Trillion (that's right, TRILLION) sitting on the sidelines after being pulled out of the stock market. It's earning next to nothing for its owners. That money will go somewhere. Today, real estate is still on sale with some of the lowest rates in history. The smart money is getting in before the next run up.