Glass Half full

     We are in a time where everyone is talking about what is going to happen.  Whether it is the real estate market, the economy, the government, the world, the spiritual arena, I could go on, but I would never get to the point.
     As a realtor I am constantly faced with the question, or presented with an opinion, of what is coming in the real estate market.  Because I am not a genie in a bottle, nor do I have a crystal ball, I can unequivocally say – I don’t know!
     Some folks believe I should know, and many folks claim to know what is coming, I guess I’m just not that smart.
     Last year when the quarantine hit, I truly believed it was going to tank the market.  I had no idea it would just abound and end up as one of the hottest markets ever seen.  So that is why I can say resolutely, I do not know.

     Here are the things I do know - Glass Half Empty

1. What goes up must come down.  I have been in or close to real estate since the 1980’s.  My sister-in-law asked me to answer the phone at her mortgage company office during the summer one year, and that started me on this path.  I lived through the Savings and Loan crash, Black Monday, Enron, Bernie Madoff, and the 2008 Housing Bubble, and a lot of ups and downs in between.  Right now, much of Texas is experiencing higher than ever, real estate prices. 
2. No one really knows how long it will last.  Some of the smartest people I know are on both sides of this conversation.  Some say a crash is coming soon, others say the market will stay strong for the next few years.  There is a lot of data that has been collected and analyzed, and the internet is full of articles with opinions and data to support both sides.
3. High demand brings higher prices.  When inventory is low, and population increases, it naturally drives up the price.  We all learned it in high school economics class – supply and demand.  Some people see the current market conditions and want to sell out, however they often forget in the moment, that the truth is ‘sell high-buy high.’  The ‘really good deals’ are just not out there as much as people think they are.  If it is a ‘good deal’ or the price seems low, there is a reason.  Distressed property, a highway coming through, massive high-line wires, or gully’s in or around the property.
4. When things go south, it usually happens quickly.  I personally knew many people who sat in houses they couldn’t afford after one particular bust, I believe in the 1990’s.  A friend and her husband purchased their dream home, with a mortgage that had an adjustable rate and a balloon payment (Option ARM Loan-I believe).  The thinking then was that when the balloon payment was due, they could refinance at a low, fixed rate.  However, the market shifted and their house could not appraise for the value of the balloon.  They were unable to refinance or sell the house for the balance due.  Foreclosure was their only option at the time.  This took place all over Texas.   Beautiful, fairly new homes sat empty and were sold for penny’s, as mortgage companies tried to recoup their losses.

     To prove the point that no one really knows, I have come across articles just while researching this newsletter that gives both sides.  Some say we have an 18 year cycle, some say there is an 8 year cycle.  We just don’t know.
​

     Other things I do know - Glass Half Full

1. We will all make it through.  My husband has been in some form of construction for over 40 years.  Because of that, these housing busts or crashes have affected us directly.  I had my real estate license in the late 1990’s and ended up getting a corporate job later because it was too hard for both of us to be impacted, because of these crashes.  But we, like most American’s, are resilient and we find a way out and even make a better life for ourselves.
2. Most of what we worry about, does not come to pass.  As I mentioned earlier, many of us, not just me, thought that the quarantine would devastate the housing market.  People were stuck in their homes, and a lot of Texas was in lock-down mode.  Who knew that would create a desire to move, change jobs, or start a business?  But it did cause all of that.
3. We – at least in Wise County and the surrounding areas – are still in a very strong market.  Many are experiencing large equity increases and can sell out and pay cash for something else.  Interest rates are still low, and people are moving in from other parts of the country have cash to spend.  If you want to sell, now is the time.
4. The world is changing, and much of it for the better.  While many feel like bad news is coming in droves, people are beginning to be so creative with their lives.  Some are selling out and moving to their dream life in some exotic place because their work is all online now.  Others are creating new businesses in markets that benefit many people, some that were never thought of before.  Still some are changing careers completely and moving to their dream job because they realized that life is passing them by.  What we have been through this past year has made almost everyone re-evaluate their life. 

    What is my point of all of this?  Don’t let the naysayers or Debbie downers cause you to make a decision you later regret.  Counsellors will tell you never to make a permanent decision based on a temporary situation.  Today, this is more true than ever. 
    Administrations change every 4-8 years, and the economy shifts with it, in some way or another.  I saw a sign on a property last year that said something like “Land for Sale – depending on who wins election.”  That is a permanent decision based on a temporary situation. 
    My parents bought a home in the 80’s, from a couple that were selling out and moving to a type of religious complex, all because of what the preachers and prognosticators, were saying at the time.  Not many years after, the head of that ministry was accused and tried for adultery and embezzling.  Now the, once beautiful complex and theme park, has been sold off with huge empty buildings, and a variety of housing.  Millions and millions were lost to investors and families.  The family that sold that home to my parents, made a permanent decision based on temporary situation.  They had to start all over. 
   Buyers have called me, wanting to find land so they can live off-grid and become preppers because they are listening to some saying we are in for a really bad time.  It is supposedly coming soon and we will need to be self-sustaining.  I heard the same thing about Y2K and we all know how that turned out.   ​

However, many real estate experts say that we will never again see the housing crashes as drastic as we have in the past.  There will be an adjustment at some point, but so many things have been put into place to prevent the predators from destroying the market in that way.  So there is hope for the future. 
   If you are thinking about selling out to become a prepper, selling so you can get the equity and pay cash, or you need a larger home because of your family situation, let’s talk.  I can help you weed through all of the variables and try to help you make the best decision possible.  This is no time for a rash decision, and I would love to be your trusted real estate advisor, to help your situation.  Sometimes just talking it out, helps alleviate the concerns and you may just decide to stay where you are.  I truly want you to come to the best decision for you and your family. 

If you are interested in what some of the real experts say about the market, go to Home - Real Estate Center (tamu.edu).  Texas A&M Real Estate Center has Housing, Employment, and Index reports as well as other industry information.  ​

Update from the Wedding!

I wanted to just let you  know the wedding was absolutely beautiful and they are happily settling in to their new life together.  Thank you for your sweet comments and congratulations.  We had a wonderful weekend.  

Connecting you with Happenings and Places!

I am a proud member of the Wise County Chamber of Commerce.  They provide support for businesses in and around Wise County.  There are Chamber offices in Bridgeport, Decatur and Chico, but many of the smaller communities do not have a city office, so that is the strength that WC Chamber brings.  

Recently they created a calendar of area events, that highlights what was going on in Wise County.   Below are just a few coming up!  But click on the links below to go to their website and like their FB page, so you can see all of the great happenings and information. 

(20+) Wise County Chamber of Commerce | Facebook

Wise County Chamber of Commerce – Welcoming, Uniting and Promoting Business

God is the only one who can make the valley of trouble a door of hope. 
​Hosea 2:15