Understanding the Real Estate Boomlet

By Sal Poliandro

A boomlet is a small boom; specifically: a sudden increase in business activity. Looking back on the first quarter of 2012, that is exactly what we had in the real estate market. Optimists hope that the market has turned itself around and we no longer have a “housing crisis.” Pessimists will tell you that it was just temporary and that the market is still headed downward.

What should I do?

If you have been thinking of selling your home, get it to the market as soon as possible. Historically low interest rates and pent up demand are feeding this boomlet. Smart people will take advantage.

Why the boomlet may not last 

We are in the Presidential election season. Uncertainty causes fear and fear causes people to not do anything. If you aren’t sure about your job, you are less likely to make a large purchase (a new home). Remember how people felt in the fall of 2008 when everyone lost money in the stock market and their retirement accounts?

Most everyone agrees that we want the economy to improve. As the economy improves, interest rates will have to increase. Chances are much more likely that mortgage rates will rise. Higher rates mean that people can borrow less. If they qualify for less, they can’t spend as much on a home.

 

Mini Sellers Market?

Believe it or not, we have seen this on quite a few homes. Just recently we have had more than a couple of homes that have received offers at or above the asking price within one week of being on the market. These homes weren’t necessarily new, but they were well kept and showed well. Pick the right realtor to help guide your strategy to sell while the iron is still hot.

Get Educated.  Get Empowered.

For more information on this or any other topic, call Sal Poliandro, Broker Associate, Realtor, Marketing Advisor, International Real Estate Specialist, Short Sale Specialist, CDPE, Certified Distressed Property Expert, SFR, Short Sale & Foreclosure Resource, ePRO, SRES at 201-259-2187, visit our websites: www.SalAndDawn.com . Follow me on Twitter: @salanddawn

Sal can be reached by snail mail at RE/MAX Properties 82 East Allendale Road Saddle River, NJ 07458.

 

 

 

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