By: Lee Swearingen
A couple of days ago I was reviewing statistics on our residential real estate market. We obviously have had some changes. Each of our markets are affected somewhat differently depending on local conditions, but there are a number of similarities.
Anyway, this got me to thinking about previous markets over the years. I came into the real estate market in the early 70’s and have been President of The Ron Brown Company since 1975. I prefer to call myself a "seasoned observer" of the market. During my career I have experienced many different markets. You might say I have seen the good, bad and ugly in residential real estate.
A few memorable times included:
• 20%-30% down payments in early ‘70’s;
• runaway inflation in late ‘70’s;
• 22% interest rates early ‘80’s;
• collapse of the oil and gas industry mid ‘80’s;
• local depression in late ‘80’s to mid ‘90’s with loss of banks and savings and loans;
• incredibly easy financing last 7 to 8 years.
Through all these events there was always a market. In spite of the challenges – we listed and sold homes.
Even though the Victoria Real Estate market is different than Rockport Real Estate, Ingleside Real Estate, Cuero Real Estate or Wharton Real Estate – there is a consistency along the middle Texas Coast. There has never been a better time to buy a house.
Why Now?
Key events have come together.
• Interest rates are at historical lows; 30-year fixed rate loans below 5% have never been experienced before (remember 20-22% in the 80’s?);
• Loan low down payment of 5% or less (remember 20-30% in the 70’s or 10% in 90’s?).
• The price curve has flattened and in some cases receded.
• Also, for first time buyers there is a $8,000 tax credit available.
Then there is inflation! The government has greatly increased the money supply, in other words started printing more money. Many economists feel this will soon lead to an inflation spiral. Housing is inflation sensitive and this could drive up prices.
So Now is the Perfect Time to buy a home . . .