‘It Was Not Easy Leaving Haiti’: Good Neighbor Pat Moore Returns
This article came from one of NAR’s sister blogs. It is worth reposting because it’s a great example of how members of the REALTOR family are reaching out and making a difference globally. If you have a story to share, please send to resort@realtors.org.
Is This the Right Time to Buy?
Filed under: Events, Market Updates, News, Resort, Second Homes
Dennis Hanlon, RSPS of Park City, Utah, shared this entry on the RSPS members-only site and we thought it was timely to share with all. Enjoy the article below.
Tell us what’s happening in your markets. (resort@realtors.org)
Happy Thanksgiving to all from the NAR Resort and Second-Home Section!
If you have been following this blog for the past few months you have most likely noticed a reoccurring theme that I feel that this is the time to buy resort real estate. As I have been showing buyers property over the last few weeks and talking to other buyers on the phone, they are asking me why I feel this is the time to buy. Another great question that somebody asked is, what do I tell people who purchased at the height of the market two or three years ago? These are both excellent questions and I would like to address them in this blog. First, what do I say to people that purchased during the height of the market and have seen their property values decline over the past 2 years?
As would be expected, I have several clients in this situation and I have talked with them at length about this. The first response is that while yes the property value has declined, they have had a wonderful vacation home to enjoy with their family and friends. It is impossible to put a value on the quality time that a family is able to spend together. Time spent reconnecting with children and a grandchild who may have scattered around the country is priceless. Second, I frequently hear my clients say that had they not purchased their vacation home and instead invested that money in the stock market they would have lost more money than the value of their real estate has declined. While not overly pleased that the values have declined, everyone understands that it is a function of the global economy and are comfortable with their decision to have purchased. As long as the intent of the purchase was to actually use the property and not just flip it for a quick profit, my buyers are generally pleased with their decision.
So, why do I think now is the time to buy? After watching real estate values decline over the last 18 months I am beginning to see some sign of stabilization. However to best answer this question I need to ask two questions, first, “do you think real estate prices in a resort such as park city will increase in the next 3 to 5 years?” Second, “do you believe that interest rates, which are at historic lows, are going to go up in the near future?” If you answer yes to both of these questions, as I do, then combined with low real estate prices, strong inventory, and sellers willing to negotiate you can see why I feel that this is the right time to purchase.
It fascinates me to observe that in a “buyers market” as we are currently experiencing, buyers are reluctant to buy. However when the market is hot, as we saw in 2006, everyone wants to jump in and purchase property, even though the sellers have the advantage.
