Shhh, It's A Good Time to Buy and Sell Real Estate
By Nancy Russell Vice President CBRB
Okay, I was not going to write about it; however last week pushed me over the edge. I don't know why, but I was watching a Network Nightly News program. The "News Anchor" announced that the country was heading for a recession due to the sub-prime wave that has been sweeping over America! It's been close to six months of hysteria and yet markets, including real estate, have not come crashing down. Has there been a continued correction in Real Estate? Yes. However, the Doom and Gloom crowd would have you think that real estate is a bad investment and it's not the right time to buy or sell. Gross oversight of facts can be quite frustrating.

Nancy A. Russell, VP www.nancyarussell.com

First, what is this subprime mess? Remember when real estate was white hot? One could buy a home one month and sell it the following month for a profit. During this time more people came into the real estate market than ever before. Over the last 10 years home ownership rose 3.1 percent to an all-time high. This was helped, in part, by the lending institutions relaxation of rules to borrow money. Mortgages were provided to people who did not previously meet the standard. Then the market cools off and now we have people defaulting on loans. Yes, foreclosure rates increased and now we have a wave rippling through the market. Some would have you believe that this wave is a major tsunami.

Shhh, I have a secret for you; don't tell anyone, but the economy is doing quite well. I know you don't hear that from the major news outlets, but they have a product to sell and reporting good economic news does not fit their current agenda. Not everyone that benefited from the mortgage rules relaxation is defaulting on their loans today. Why? It's simple, over the last 10 years the average hourly earnings rose an astounding 40.7 percent! I know your night- ly news program missed reporting that fact provided by the U.S. Department of Labor. While there are people defaulting on loans, you have a better chance at getting knocked over by a wave at your favorite Cape Cod beach than you do having the sub-prime mess impact you. Let's look at other facts.

Unemployment rate: I have said it before and that is a healthy employment rate is always good for home sales. Again, based on information provided by the U.S. Department of Labor, nationally the unemployment rate is 4.5 percent. It has been hovering around this figure through the first six months of the year. Closer to home, the Massachusetts unemployment rate is around 5.1 percent. Yes, it is higher than where it was in March when it hit 4.4 percent, but in the event you did not know, jobs in the Bay State are up 33,700 from one year ago!

Inflation is defined as a sustained increase in the general level of prices for goods and services. Inflation for the first five months of 2007 is averaging 2.5 percent. If this continues, inflation will be lower this year than anytime over the last three years. Say what you want but the Federal Reserve is keeping this economy moving along nicely.

Finally, there are many other fundamentals like mortgage rates, real gross domestic product, real disposable income, consumer confidence, etc. that tell me it's a great time to buy or sell real estate. The fact is I have always been bullish on real estate. If you are planning on buying and staying in a home for at least three years, what are you waiting for? If you are planning on selling, what are you waiting for? I would like to talk to you and help with your real estate needs.

"Whatever Nancy touches turns to SOLD." Call me at 508-389-1902 or by e-mail Nancy.Russell@NEMoves. com. Visit my Web site for more information: www. nancyrussell.com.