Thursday, January 22, 2009

The new real estate economy

The new real estate environment is quite unlike anything anyone has seen before. Granted election years are always a bit on the slow side but this year we had some extraordinary circumstances what exacerbated the situation and with a slowing economy, massive foreclosures, and banks not lending money, the market pretty much locked up completely. In fact the only people out looking at real estate right now are people who want to invest on the foreclosures that are selling for up to 50% under their true value.

One thing that we as agents have going for us at this point is extremely low mortgage interest rates approaching 4%, which means many people who are still in their jobs and still have equity in their homes or are first time buyers will have the best opportunity to own a home in decades, or ever for that matter.

What will people do? Will people be able to sell homes to move into bigger ones? Will people just refinance into low rates and try to recoup some of the equity they once had? Mortgage modification will also be available via the T.A.R.P. program as well.

I believe that people with jobs will begin to spend again, those without will have to wait until the economy comes back which means that we will have a mediocre year at best in Wisconsin real estate with solid communities like Watertown, Oconomowoc, Jefferson, and Waterloo will fair better than those areas without industry and commercial entities which provide solid, stable, and secure incomes for potential buyers of homes.

I feel like the long term holds great opportunities for things like solar energy, geothermal heating and cooling, and wind energy, as well as clean coal and nuclear energy.

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