I just received the November 2008, The Wall Street Journal Mag, Smart Money and the cover reads
Surprise! 25 Housing Markets Ready To Rebound.
Even as the nation reels from the housing crisis, we find 25 Markets ready to rebound.
"Some of these cities saw home values soar during the boom; others sat it out. But they all show signs of life on the job and home sales fronts suggesting that their worst days are behind them.
Number 16 Memphis "A super affordable housing market has meant little volatility."
5 Year Price Change '02-'07 +17.6% (where are your stock values right now?)
YTD Price Change +.70%
So, this has been and will continue to be the theory that I work and advise from until I see differently. As I posted yesterday, Memphis never had the huge price swings and speculators that other cities had that caused their massive depreciation's. Memphis real estate is a very stable environment and particularly downtown Memphis real estate is a very solid and wise investment for personal and rental investment uses as I posted yesterday.
Next time you hear gloom and doom don't believe the hype, hype sells newspapers and stirs media buzz. The reality of this situation is yes, we are in a sluggish economy but mortgage rates are low, inventory is great and prices are stable to appreciating. Fact is, downtown Memphis real estate is selling at a lower volume but our average prices are up from previous years.
The way I see and advise is such. Based on the WSJ/SM article of a 17.6% Memphis appreciation and using a $200,000 home value that equals equity of $35,200 over 5 years or 3.5% appreciation per year (like a bond) but in this scenario you get the pleasure of living in your investment! Not a bad wealth building tool.
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