In short, no! So go spread the good news, Austin is still escaping the economical story with strong growth rates and a strong local economy, and nothing is more local than real estate. What we are battling in Austin’s real estate industry is misconceptions, so spread the good news, here are the facts:
6 Million Americans are expected to buy a home this year. And that’s a lot!- There is still over $23 trillion of value in u.s. housing stock. Home ownership continues to be the basis of our wealth in this country.
- The housing market cannot help but grow. Our country’s tremendous wealth, liquidity, and entrepreneurship will continue to drive our economy. 70-100 million people will be added to our market in the next 40 years.
- Real estate is cyclical. The biggest fear in good times is that the fair weather won’t last forever—because it doesn’t. But the reality of a cyclical real estate market also provides its brightest hope in bad times—foul weather won’t last forever either.
- 2008 is the best year to buy a home in 35 years. 1973 was the last time mortgage rates were this low in a buyer’s market.
- First-time buyers have a real advantage in today’s market. First-time buyers can buy at a reduced price without having to sell at one too.
- First-time buyers lose money while they wait on the sidelines. First, renters typically pay more state and federal income taxes than homeowners with a mortgage deduction.
- Homes sell when they’re priced right and show well. Buyers are looking for value in today’s market. When sellers make their home’s value obvious, they make a sale—it’s as simple as that.
So take the news you hear with a grain of salt. And remember, those in the news industry are in the business of selling news. If they have an ongoing story that grabs at your emotions (like fear of losing money), they’re going to run with it! So be an educated consumer and do your research!
About Aria Kilpatrick
