The Market Update
Market Update for December 2011:
Inventory is at a 10 year low.
Interest rates remain around the never-previously seen 4.00%.
There is less than 6 months supply of housing locally (while nationally inventory is at 8.5 months).
Purchasing activity is higher than Fall 2010.
Those are the positives.
The negatives are there, and they tend to be outside real estate. The economy is puttering along. Unemployment is at 9.4% locally (higher than the national average). Congress can barely agree that pizza sauce is a vegetable. The lack of passage by the Super-Committee of a new debt deal could result in $500 billion in additional defense cuts in 2013, fairly important to a vibrant economy in DOD-heavy Colorado Springs.
It may not be an original idea, but it has never been more important: anyone entering the market to purchase or sell should data-up, knowledge-up, and define expectations clearly. Every variable necessary for a market correction is in place - IF - buyers allow the market to improve by continuing their purchasing of available inventory. If buyers slow down or if inventory balloons in 2012, all market improvements will be lost. But out gut is this: people are ready to get on living. It won't be an instrument of congressional manipulation or some giant tax break to a new local manufacturer that brings our local economy back. It will be youth and ingenuity. This is a real estate market that will set people up brilliantly for the next 5 to 15 years, a scalable, sustainable, repeatable, appreciable market, and when buyers believe that (we think that they are "believing that" now), then the market recovers.