Rocketing Out from Rock Bottom
Have you ever gone on a road trip with kids? If you have, you may cringe at the question, “Are we there yet?”
Over the last couple of years, we’ve been on pretty wild real estate market road trip that has had buyers, sellers and realtors asking themselves the same question. “Are we there yet?”
It seems ironic that we’re so eager to arrive at this particular destination, but arriving at Rock Bottom does have a bright spot: the only direction left is up.
Investors have been waiting for this moment, not just locally in Columbus, but also nationally. Investors, with money in their pockets, have been standing on the sidelines waiting for the right time to dive into real estate. With 70% of the U.S. economy based on consumer confidence, many professionals believe that 2012 is that year – when the market hits bottom, it surprisingly inspires confidence, because that’s when the investors start loosening up their pocketbooks and making things happen.
Commercial and residential sales and construction will begin to climb as buyers saturate the market. Real estate is about to get a kick in the pants, a boost it has not seen in several years.
Go ahead, take a deep breath. That sigh of relief is well-deserved.
People are ready for a rebound. Hundreds of people have mortgages underwater, owing more than they can afford – more than the home is now worth. Homeowners have lost everything in foreclosure; they have walked away from their homes. They’ve even begged and bargained with banks.
More fortunate homeowners, who have been able to stick it out and are fighting the good fight to keep their homes, may find better opportunities for refinancing in 2012. Current refinancing rates are ridiculously low. There is excitement in the air – refinancing in 2012, financing for commercial purchases and buyers with financing for residential real estate too. Lenders may even begin refinancing homeowners who don’t have equity in their homes
In closing –
There is an expectation of better days ahead and it’s about time. The turnaround out of rock bottom will not be a quick u-turn but more like one of those 5-point jobs in an RV. But the turnaround is happening. There will be no rocket blast effect and for most, the change will initially go un-noticed. It may be a slow burn at first, but we’re heading in the right direction. Finally.
Scott Stevenson
