The chart below shows Historic Mortgage Rates and Historic recessions and it is a great example of why we should be buying real estate in today's market.
I said before that these are extraordinary times. This chart shows the bellweather since 1970 and there are several points I would like to make.
- First I wish to show here is how low the rate is relative to history! It is under 4% at present! Why aren’t people buying! The chart also shows that technically we are not in a recession (gray areas). The Federal Reserve Economic Data of St. Louis provided the chart and surely they know if we are in a recession or not.
- Second- It shows the recession of 2008-2009 and the post 9-11 reccession. It shows the mortgage rate peaks of 1982 that were over 17%. Those were tough times to be selling real estate. It also shows the oil embargo induced recession of 1974.
Considering that mortgage money is available and is at historic lows and that there are many motivated sellers out there right now, why are there not more buyers? Many people are out of work or are underemployed and in no position to be buyers. However, there are many who are economically sound and who could be making huge potential investment gains by buying real estate at this time. I truly believe that many buyers are convinced by the never ending negative press that real estate is horrible and why would anyone ever consider purchasing real estate at this time. Traditional news channels have not been kind to real estate or any type of investment to speak of. They badger the government because we are running out of Medicare yet offer no real long term investment plan for the average citizen. This chart and the current state of the real estate market – in my opinion – offer’s a fantastic investment plan: purchase real estate for rental purposes and diversify your portfolio. Any good account can tell you the tax advantages and any good REALTOR can get you set up on a search for rental potentials.
If you tire with renting then simply follow the other old rule: buy low and sell high. There is no simpler axiom and one that holds true no matter what sort of economy we are in.
Real estate has always recovered. It is not a matter of if. It is a matter of when. So, the truth about the market is, that it is the absolute ideal time to be a buyer. I think the more positive people can be about real estate, the better off we all will be. As always – call me with ANY questions, check out my website at www.eagleriverhomefinder.com, my blogsite at www.juliesellswisconsin.com and feel free to pass this on!
Real es The chart below shows Historic Mortgage Rates and Historic recessions and it is a great example of why we should be buying real estate in today's market.
Thank you so much for your time and your business. and for LISTENING!
Happy House Hunting!!!
Julie Winter-Paez Broker/Owner, CRS, GRI
ReMax Property Pro's, LLC
602 Michigan St. PO Box 1058
Eagle River WI 54521