With all of the negative news media coverage surrounding the real estate industry, how is it possible that there could be a ‘silver lining’ you might ask?
The answer is a rather simple one. Most news media organizations thrive on both negative news and sensationalism. Have you ever wondered why we seem to have “NEWS ALERTS” complete with dramatic sound effects at nearly 5 minute intervals?
Recently, news anchors had to report higher than expected retail sales on “Black Friday,” the day after Thanksgiving, which is traditionally one of the busiest shopping days of the holiday season. Great news for the economy? One would think so. But it almost seemed a disappointment to the media who quipped “but can this last.”
You almost need to be a trained observer to interpret the news today. For instance, how many Americans believe the home mortgage industry is in shambles? Probably most of us.
Well the truth is that the “sub-prime” market that is most often reported on makes up a very small component of the overall mortgage marketplace. In fact, fewer than 2% of all home mortgages are considered “troubled.” So why does the 2% receive all the coverage? It’s negative. Today, credit worthy borrowers can qualify for mortgage loans at rates that are their lowest in nearly a year.
So, how bad is the real estate market, say, in the Tellico Lake area? Again, it depends on who you talk to.
Real estate’s silver lining in this region includes lower construction costs, shorter construction time and lower than expected mortgage rates. All of these factors result in savings to would-be homeowners looking to build.
“We’ve been able to pass on real savings to homeowners resulting from reduced construction material costs,” says Al Wilson, Cooper Homes Division President. “Coupled with a shorter building cycle, new homeowners can achieve greater savings than might have been available, say, a year ago.”
Asked if these same savings will be available in a year from now, Al responded, “That depends largely on demand. If demand increases, then building material costs can be expected to rise.”
So if building costs are down, if the construction cycle is shorter and if mortgage rates are at a one year low, why are so many Americans postponing their retirement dreams?
Perception!
The fact is, if you postpone building your retirement dream home, it very likely might end up costing you more money later.
You may also ask yourself what cost you place on delaying your retirement dreams that you have worked so hard to achieve over the last 30 years or more.
