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Damn the Data! I’m Buying a House

This blog tries to share the best real estate information we can find. We don’t like opinion pieces with just anecdotal confirmation of points. We like hard facts, packaged in a compelling matter that enables the reader to make sense of a very confusing market. The goal is to not be subjective, but instead, TOTALLY objective. We lean heavily on known sources with strong industry studies to help guarantee this.

The recent real estate news has not been optimistic. A surge of foreclosures is coming. Interest rates are on their way up. Prices are on their way down.

Yet the data never tells the whole story. There have been three major reports released recently that show that buyers are about to re-enter the market because they again see opportunity in real estate.  Below are the three main groups that will be returning to the market.

The Wealthy

The Wealth Report, a study released by Citi Private Bank and Knight Frank, is one example which shows that people are bullish on real estate. In the report, which surveyed High Net Worth Individuals, it was stated

The tangible and straightforward nature of residential property, especially when the outlook for other asset classes is uncertain, explains this attraction. The results of The Wealth Report’s 2010 Attitudes Survey clearly indicate that High Net Worth Individuals, wherever they are around the world, still see property as one of the best assets to own, with most predicting values to grow in 2010.

The report asked: “Will 2010 be a good year to invest in these asset classes?” Here were the results:

When asked to determine which will be the best performing property class, 50% said residential properties.

The Investor

Just this week, Move, Inc. released their consumer survey which said:

Interest in real estate as an investment has more than tripled in the past year.  In fact, 17.2 percent of potential home buyers today say they plan to purchase a home in the near future as an investment compared to just 5.6 percent in March 2009.

The survey also found just over 10 percent (12.3%) of Americans planning to purchase investment property in the near future say they will pay for the property using 100 percent cash.

People are again looking at real estate as a strong investment. They believe so strongly that they are willing to put their own cash into the investment.

The Average Buyer

The wealthiest and the investors are not the only ones who believe now is the time to buy. Fannie Mae’s National Housing Survey claimed that:

Nearly two-thirds think owning is preferable to renting. Safety and having a positive environment for children are cited as top reasons to own.

And the following slide from the report shows that 2 in 3 think it’s a good time to buy a house, and nearly 1 in 3 think now is a very good time to buy a house.

What does this mean to you?

The data might say that the market is not showing signs of a recovery just yet. But, to some, that means that opportunity will never be better. As Warren Buffet said:

“When everyone is greedy, be fearful. When everyone is fearful, be greedy.”

Perhaps this is the best time to buy.


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4 replies
  1. John T Williams
    John T Williams says:

    This is right on as many buyers have recently stated to me that they are more interested in finding a good deal regardless of the April 30 th deadline for the tax credit. I have explained the urgency however of cost vrs price as the current factor and people do understand quite quickly.

    Reply

Trackbacks & Pingbacks

  1. […] Damn the Data! I’m Buying a House […]

  2. […] We have already reported on two major surveys of high-net-worth-individuals in a previous post, Damn the Data! I’m Buying a House. Both surveys showed that the wealthy buyer was ready to re-enter the real estate […]

  3. […] We have already reported on two major surveys of high-net-worth-individuals in a previous post, Damn the Data! I’m Buying a House. Both surveys showed that the wealthy buyer was ready to re-enter the real estate […]

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