Saturday, February 6, 2010

The Perfect Storm Brewing

Some storms are bad but, some are good. I think that a good storm is brewing all around us! I am not alone in my thought! All of the conditions are coming together for this storm to occur and there is only one factor preventing it from hitting us full force. Here are the factors which are leading to a perfect storm in Real Estate sales:
  1. Pent-up demand
  2. High inventory
  3. Low prices
  4. Motivated sellers
  5. Low interest rates
  6. Incentives from government and other sources
What is the one thing preventing this storm from occurring? It is lack of buyer confidence. When this one factor changes, Katie bar the door!

Have you noticed the little blond giving Real Estate advice on the NBC Today Show? Maybe you have seen her on the program Shark Tank. At first I wasn’t very comfortable with what she had to say because she appeared attune to a single market “New York City” rather than the Nation as a whole. Are you aware who this tiny lady is? Maybe we should pay attention!

Being old sometimes has its privileges such as receiving the AARP magazine. A recent article about “Real-Estate Seer” Barbara Corcoran by Laurie Wiegler was titled:

A Tycoon’s Tips
BUY NOW! That’s the hot advice of respected housing expert Barbara Corcoran, who says she’s never seen a better time to purchase a home. “Typically when real-estate prices are low, interest rates are high. This is the first time I’ve seen cheap money and cheap prices simultaneously. This is the good old days we’ve dreamt about.”

Corcoran has a knack for timing. Having parlayed a $1,000 loan into a high-end New York City real-estate firm she started, The Corcoran Group, she sold the company for $66 million in 2001, before the market cratered.

Now, as an investor on ABC’s Shark Tank, Corcoran encourages buyers to jump at the abundance of good deals, “It’s a perfect time to snatch a bargain or to upgrade,” she says. And when does she think the market will rebound? “Real estate is slow to unwind but fast to recover. I suspect we’ll make up for most of the loss of the last four years within the next 18 months.”
I like this tiny blond better all the time! Check out her best selling book (click on the image below).

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