For those of you not familiar with Rotary, there's a wonderful tradition during each meeting where Rotarians are fined by the Sergeant at Arms for indiscretions. I have been fined many times over the years, and for many different things. However, yesterday was a surprise. I was fined for not smiling enough in this real estate market! What? Of course, the Sergeant At Arms was my dear friend Nathan Bauer, of Bauer Insurance. I'm assuming in this economy, insurance agents must be sipping Mai Tai's or something!
But enough of the sarcasm, because I believe that what makes every joke just a little bit funny is that it's a little bit true. So I have to take Nathan at face value and smile a little more in my blogs. After that I'll just have to consider botox, 'cause I'm sure this issue has more to do with gravity than it does with my attitude!
After all, I'm the first one to tell you we've got a lot to be grateful for. I really think we're nearing the end of this downturn. I'm thinking we've got a couple more years of decline, but then things in Salem should stabilize. As you watch national news, try to keep in mind that we are typically a couple of years behind the nation. That's because our labor market is dependent on government and the school district. Their budgets are based on property taxes, and property taxes are a 3 year look back.
On the upside, we have historically low interest rates. As you see in the article link, we're whining because interest rates have "popped up" from 3.88 to 4.0+/-. Oh, wo is me!
All and all, I'm still bully on real estate. The investment and first time buyer opportunities are phenomenal. Rentals actually cash flow, and there are a number of families that need homes to rent.
The banks have become much more efficient in their handling of short sales. That's a positive, as we reach out to folks who are under water, to try and save them from foreclosure.
The banks are also poised to again dress the foreclosure issue, as the MERS settlement occured about 30 days ago. We'll start seeing those properties entering the marketplace in around 60 days. The end is in sight once that mess is cleaned up over the next couple of years.
So there you have it......Amy's Happy Report on real estate. Call me if you have questions....or if you just want to see me smile over the phone!
Ciao for now,
Amy
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