Hope things are going well….thought you might like a little information about the local real estate market PLUS something we saw from an expert that is very interesting and encouraging:
“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”
– John Paulson 9/27/2010
WOW! That’s a powerful statement.
There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here are several reasons why.
Who is John Paulson?
Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?
According to Forbes John Paulson is:
a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.
According to the Wall Street Journal Paulson is:
a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.
What is going on in Rockford? Price is still KING! Homes are still selling in this area and interest rates are around 4.3% which is one reason Mr. Paulson may be so bullish on the homes market! When you factor in the large selection and low prices, this may be an opportunity we may not see again. With the interest and tax deductions from income taxes, the effective interest rate may be around 3%.
Here are the latest statistics that just came out for the month of September. Prices continue to fall a little more in our area. Total listing inventory still high and the summer slowdown and total sales were up a little from August…. Supply and demand forces continue to drive prices downward. As we move into the Fall market, Interest rates continue to be a bright spot…generally between 4% and 4.5% depending on the product and hopefully will bring buyers out. The Fall market has usually been a very good time to be on the market.
The market information for September is as follows:
Month/Year Unit Sales Ave. Sale Price Current Inventory YTD Sales
Sept/2009 364 $123,962 3475 2642
Sept/2010 274 $118,819 3485 2644
Sale Pendings (New sales ready to close) stand at 378 which is about the same as 380 last month. We will continue to watch these and pass along the trend in the coming months. Also, there were 81 Foreclosures that sold last month which is almost 29% of all sales in our market. Short sales accounted for 8 closings or 3% of sales. There is some good news about Embry Riddle considering our area plus other expansions and job creation around the area…but we continue to look for more.
Please call us if you know someone who is planning to move!