Dennis Norman
By: Dennis Norman
Considering over the past few weeks I have done posts with titles such as ”Is another bubble going to burst in the real estate market?” and “Beware the false bottom in housing” the title to this post probably has you saying “huh?”.
Well, the title does not reflect my opinion; don’t get me wrong, I would love to see the market bottom out next month and then begin a recovery, but, I don’t see that happening. I think the record number of mortgage delinquencies, foreclosures and the unemployment rate are going to continue wreaking havoc on the real estate market for some time unfortunately. But, in the interest of fair play, I like to present opinions of people with opposing views as well and in this case it is the opinion and prediction of Robert Allen, the author of “Nothing Down”.
I received a press release this morning indicating that Robert Allen announced today that “in his best estimation we will hit a bottom to the real estate downturn this coming October and that now is a good time to buy.” Allen says “what’s changed from a few months ago is that inventory has begun shrinking, bidding wars have started across the country, and prices are finally starting to rise in many markets. I’m encouraging all my clients to start looking for properties again.” (tip to agents – email a link to this article to every client or potential client you have and hope that they read Allens quotes-buyers will panic, afraid they are going to miss the boat, and your phone will ring off the hook).
Robert Allen says recent facts seem to support his and the media’s claim that not only is the recession over but the real estate market has hit a bottom with some areas of the country even posting average price increases. According to the Winans International Real Estate Index (WIREI), which measures U.S. home prices from 1830 to present, all regions of the U.S. have seen significant increases in new home sales, which has led to a decline in new housing inventory. Historically, an increase in new home sales and a decrease in housing inventory have been clear signs of a turnaround in past downturns.
There you have it…You have Robert Allen, a best selling author and nationally known real estate investment advisor calling the bottom of the real estate market….then you have me….saying maybe not. Hmm maybe if I end up being right next time this year I’ll be a best selling author and nationally known real estate investment advisor?
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
