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Fort Myers No Spin Zone

The Best Opportunity in 35 Years

By: Gary Szolosi
Tuesday, May 06, 2008 12:00 PM

With all the press and pundits talking about the doom and gloom scenario, they for some reason have failed to view the glass as half full. It is often said that the best teacher is history, so here is a brief history lesson. It was back in 1973 when interest rates were about the same as they are today. That was considered a buyers market then, however inventory levels were far below the level of today. Since then there has only been 2 years that offered similar interest rates as today. It was 2001-2002, rates were similar but this was the height of the seller’s market, which offered low rates but higher prices and fewer homes to choose from.  We have had other buyers markets but they were in the 80’s and 90’s with interest rates ranging between 8%-21%.

 

With supply at record highs and low interest rates available, the selection and cost has not been similar for 35 years. In fact there has not been a better time to purchase in almost four decades. For those wise buyers, I think they are looking at the glass as being half full and ignoring the pundits that have a track record of getting it wrong most of the time. So if you really want to rely on something, historical data is unchangeable and the facts substantiate that there has not been a better opportunity than now, to buy a home.

 

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Comments

Larry Bertok
Member Since '06

Larry Bertok said:

Great post Gary,

I talked about this many times on my show. I also wanted to let you know I will be hosting a show Monday thru Friday from 6-7pm on 1370wspd. I hope you tune in and let me know what you think. Take care Gary and I will talk to you later.

May 6, 2008 9:28 PM
Chantal Gakwaya
Member Since '06

Chantal Gakwaya said:

Gary, great post, I believe you are right about many things.

I think this time we're going to have some major hurdles that haven't existed in the past. Thus, we're going to have to be a lot more creative to turn this economy around.

Oil prices at $121 and expected to reach $200 by years end.

Economic globalization and outsourcing

Baby boomers leaving the workforce

These are a few things we haven't had to deal with in the past.

Though I suspect you are right - there is no better time than now. I suspect that interest rates are going to go sky high in the next couple of years to help us recoup. There is no way they can stay as low as they are right now.

May 7, 2008 9:26 AM
Jana Davis & Marcia Demerjian
Member Since '05

Jana Davis & Marcia Demerjian said:

What goes up must come down, spinning wheels got to go round...

Now I have this song in my mind!  

Our buyers are back!  The inventory is still high but the lower priced homes are going out with multiple offers.  Many buyers realize there is a small window to take advantage of the lower interest rates (Dec. 2008 deadline)  My cash buyers are willing to wait for the market to bottom out.

Our news media are also telling buyers now is the time.  What a change from a year ago.

Jana

May 7, 2008 12:53 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

Chantel, I think we will see interest rate rise but at a very slow rate. When you look at prices v/s affordability we are in a great market right now for people that could not afford a home in the past. Granted it takes responsibility when it comes to being able to service the loan but I believe there are a lot of new buyers out their (especially in my area) that now have the ability to capitalize on the American Dream. The "woe's of others sometimes open the door for the few that are sometimes left behind. Perhaps this is a signal to all of us that we need to think about the first time buyer and the future a little more diligently.

I think with any bad there is probably a good side and I prefer to dwell in that zone.

May 7, 2008 2:17 PM
Barb  Van Stensel
Member Since '06

Barb Van Stensel said:

Gary, great post!  I can see the change in consumer confidence in a positive way.  This is a great time to buy!

May 7, 2008 3:17 PM
Nate Covington
Member Since '07

Nate Covington said:

Gary, great post.

I am glad your not spinning, just the facts.

Chantal, one good thing about the Baby Boomers leaving the workforce is that someone has to replace them in those jobs.  Maybe possibly move up clients not just entry level, which would open up entry level opportunities as well.

I hate to see the price of oil go up so high, but maybe we might start the move away from the internal combustion engine?  Also it has been getting easier to find a parking space as those giant diesel pickups aren't taking up two and three spots anymore.

May 7, 2008 7:56 PM
Phil Anderson
Member Since '04

Phil Anderson said:

I know that when my car's lease ends next January, I'll be buying or leasing a hybrid.   I hate it, and I love it.   Sense?   I want better MPG, but I'm 6' 2" and I've been scared off by the fear of cramped quarters.  

Thread to follow!

Thank you, Gary!

Phil Anderson

www.NewPortlandHome.com

Portland Metro Real Estate

May 10, 2008 8:50 PM

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