Real Estate: When She Speaks, We Should Listen

by The KCM Crew on March 2013

Ivy Zelman is an industry expert consistently recognized by Institutional Investor, Greenwich Associates, StarMine and The Wall Street Journal as an industry-leading analyst. What separates her from many other analysts is the fact that she has accurately called the real estate market continuously over the last decade.

Her Position in 2006

She was one of the first to call the burst of the housing bubble. She was nicknamed ‘Poison Ivy’ for the harsh positions she took in combating the overly optimistic views of many in the industry at the time.

What happened next?

Existing home sales plummeted, new construction starts feel to historic lows and prices dropped by 50% in some areas of the country.

Her Position in 2012

Ivy Zelman, in a Wall Street Journal article in March Stunned Home Buyers Find the Bidding Wars Are Back, projected that the real estate market was about to rebound and that home prices would begin to appreciate. She emphatically claimed:

“We very much believe we’ve hit bottom.”
 

What happened next?

Pending sales (homes going into contract) surged in May and have remained above what is recognized as a healthy market level ever since. Starting in June, home prices began to appreciate on a year-over-year basis. This continued through the rest of the year with yearend appreciation coming in at 6.8%.

Her Position Today

What is Ms. Zelman saying today? In an interview on CNBC, she said:

“I think we are in Nirvana for housing…I’m probably the most bullish I’ve ever been fundamentally…I think home prices could go up for four to six years…Today, the urgency and sentiment toward buying residential real estate is back.”
 

What will the future bring?

If Ms. Zelman’s past predictions are evidence of her understanding of the housing industry, it seems that real estate is about to make a dramatic comeback.

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

Homeownership: The Reports of Its Death…

by The KCM Crew on March 13, 2013

Mark Twain and homeownership are both iconic pieces of the American experience. And like what happened to Twain in 1897, recent reports of homeownership’s death have been greatly exaggerated. Ever since the housing bubble burst, many so-called experts have predicted the end of homeownership as part of the American Dream. Today, we want to expose some of these myths.

MYTH #1:

After the housing crash, Americans would no longer believe in homeownership.

FACT:

While homeownership has fallen from a high of 69.2% in 2004 to 65.4% at the end of 2012, the desire to own a home is still strong.

• 73% of Americans say it is a good time to buy a home. (Fannie Mae)
• 70% of Americans see homeownership as part of the American Dream. (Trulia)
• In every age group from 25 to 65 years old, over 80% plan to buy a home in the future. Even 76% of those over 65 years old plan to buy a home in the future. (Joint Center for Housing Studies at Harvard University)

MYTH #2:

Those families that were forced from their homes during the housing crash would never look at homeownership in a positive light again.

FACT:

• Many of the sellers who lost their home to a short sale or foreclosure over the last six years are re-entering the housing market as purchasers. It is projected that over 700,000 people in this category could be in the market for a home in 2013 and that the number will more than double to over 1.5 million in 2014. (Moody’s Analytics)
• Nearly 80% of those homeowners who decided to strategically default (walking away from the house and mortgage) over the last few years have expressed a desire to buy a home again within the next 12 months. (YouWalkAway.com)

MYTH #3:

Young adults, after seeing their parents suffer major loses of equity, will not embrace homeownership especially as a financial investment.

FACT:

Not one study has substantiated this myth. Recent studies have actually proven the exact opposite:

• 72% of young adults between 18-35 years old see homeownership as part of their personal American Dream. (Trulia)
• 75% of young adults between 18-35 years old see homeownership as an indicator of success. (Realogy)
• 94% of young adults under 25 and 96% between the ages of 25-34 plan to buy a home. (Joint Center for Housing Studies at Harvard University)
• 79% of young adults under 25 years old and 86% of young adults 25-34 believe that owning is a better financial decision than renting. (Joint Center for Housing Studies at Harvard University)

Obviously, the reports of the death of homeownership in America were GREATLY exaggerated.

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

 If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!
Noemi Cardoso
Local Office. Local Agents. Local Knowledge.William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com