A Little Good News

Fiserv, the company that operates and distributes results from the Case-Schiller Index is out with some welcome predictions.  The Index tracks trends in the sale of existing single family homes and uses historical data and a variety of other factors to predict everything from prices to volume.  The good news is:

They expect nationwide prices to stabilize in 2012 and rise 2.7% by the first quarter of 2013. Gains are expected in 365 out of 384 metro markets by 2013.

Now there’s a breath of fresh air.

Four markets they expect to see the greatest increase in value over that period are:

Palm Bay-Melbourne-Titusville, FL: Prices to rise 18.3% by the 1st Q of 2013.

Seattle-Bellevue-Everett, Wash.: Prices to rise 10.2%.

Tucson, Ariz.: Prices to rise 10.2%.

Memphis, Tenn.: Prices to rise 10%.

I can’t help but focus in on Tucson, which is arguably the ‘epicenter’ of the housing crisis (the argument would probably come from Phoenix, Las Vegas and Southwest Florida).  Our Help-U-Sell Brokers in the Tucson area have done a very good job of weathering the storm.  Jimmie and Beverly Sonnier have continued to list, sell and maintain a good level of production and a wonderfully Cajun positive attitude.  John and Maria Powells’ business, which they opened in the middle of this mess (2008), has absolutely exploded.  Every time I talk to them they are trying to find another assistant or another buyer agent.  So I’m very proud of our folks in Tucson and am excited to see good opportunity there. (And, oh, by the way:  our other ‘epicenter’ brokers in Phoenix, Las Vegas and Southwest Florida have also done a stellar job.  I am a little in awe of what they’ve accomplished).

That’s the thing about this tough real estate market:  it’s full of opportunity.  I understand you can buy a duplex in Tucson for less than $100,000.  Think about that!  Getting financing might be a challenge – that’s why so many investor sales are all cash today – but if you did secure a mortgage you’d have a positive cash flow right from day one PLUS the good possibility of an excellent increase in value.

Fortunately, it seems the public has started to recognize the opportunity.  With interest rates ratcheting down once again, to levels below 4%, there seems to be an uptick in activity in many markets.  A lot of ‘on-the-fence’ buyers have hopped off and are ready to make a move.  So, you survivors out there:  take a breath, give yourself a hug, a little pat on the back, get that smile adjusted and get busy.  And I’d say, focus on Listings.  They will attract that good emerging opportunity and those good emerging opportunists to you!

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