Recently, Jamie Johnson, one of our Windermere Agents in Camano Island shared a great analogy about the current market that I would like to share with you.
"We slurp soup when we are ill. Or when the day is dark and gloomy, we hunker down and make soup. Why? It’s good for us, and gives us comfort. That is exactly what our real estate market has needed….a good soup recipe.
2010 is bringing a new “energy” to our business. Pending sales almost doubled in November compared to November 2008. The market is back in a big way. Think of our market as the perfect soup recipe. What is your favorite soup? Clam chowder? Chicken noodle? Whatever it is, it wouldn’t be good without all the ingredients to make the soup perfect. Too much salt, and it’s not edible. No chicken, well, then it wouldn’t be chicken soup.
The current housing market is the perfect soup for buyers and sellers. There are three main ingredients that make it yummy. Here is the recipe:
First ingredient: Low prices. If you are a seller, you may say “this is not good for me.” But think of it this way….if prices were not low, there would be no buyers. And if you are looking to move into another home (most people are; they need a place to live!), you are going to find a GREAT buy on your next home.
Second ingredient: Low interest rates. Hovering around 5% right now. Wow! Almost free money!
Third Ingredient: Tax Credit. $8,000 for first time homebuyers, and $6,500 for repeat homebuyers. (more info at: http://www.federalhousingtaxcredit.com/). Since the beginning of this tax credit, we have seen a rise in interest in the first time home buyer market. Clients have been using the money for down payments or to simply upgrade their new home.
Directions: Combine all ingredients, heat up, and stir. Enjoy.
What is your favorite soup? Think about it. And jump. The perfect recipe doesn’t come around often."
Via Camano Island Real Estate blog