How the RECESSION will effect REAL ESTATE

There is talk daily about The “R” word on multiple media forums these days.  You can’t read too many articles, watch any news shows, or get to far into the internet before you get bombarded by news of the upcoming demise of our economy.  I heard recently that 25% of people polled think we are headed for DEPRESSION.  Depression?  We’ve only had one, and it was at a time when there was uncertainty on the future of the free market and capitalism!  I hardly think things are that bad, but if you ask people in parts of the mid-west what they think of the upcoming recession, you are probably going to open up a discussion that indicates that they are already in a recession!  I just got an email from a lady saying they sold their home for a loss in Detroit after living in it for 7 years and making substantial upgrades to it along the way!  That’s a tough market! 

I’ve said it many times before, and it is echoed by the chairman of the San Antonio Board of Realtors Chairman, Mr. Bob Leonard – REAL ESTATE IS LOCAL!  The recession, to some extent may be also.  Through my blog entries on what is happening in San Antonio’s Real Estate Market, I get comments from other agents in other states saying they are glad to hear someone say what they think is happening in their market – HOMES ARE BEING BOUGHT AND SOLD!  I spoke with a guy from Washington this past weekend who is about to sell his house, and my thought was, “Oh boy!  That’ll be tough!”  He then told me that his market is doing really well because people are leaving California and now buying where he lives.  I would have thought that with this horrible economy and the housing crisis on the West coast that he’d be terrified to sell, but that wasn’t the case at all.

The truth is that jobs are coming to Texas, and we are positioned nicely for great growth in the future.  I think the last number I heard was that 20,000 new jobs were coming to San Antonio.  It’s hard to think of that being a recession!  The listings I have on the market are getting shown, and not one of them is listed at below what the people bought the homes for.  Not one despite what is happening in other areas, or what the national media is saying. 

Now I’m not one of these guys with an agenda, or tries to get some political view across with the disguise of the blog being something else.  I’m just a Realtor in San Antonio, TX who evaluates what is going on in my local market, and what I see is that things are good!  Are they what they were in 2005? No, but nobody had ever seen anything like that before.  I was selling homes at that time for a large home builder, and there had been a time when if you averaged selling one home a month you’d be in great standing with the company.  When I was selling in 2004-2005 I sold 10-15 homes at month at times!  I spoke with a friend still in that market, and you know how many homes he is supposed to sell a month 4-5.  That is back to where we were before we had our big boom. 

So are we headed into a nation recession?  Maybe we are, but here in good ole’ San Antonio, TX both the business economy and the real estate economy are healthy.  Are they at a break-neck, record breaking pace?  They are not, but if you are in a market that is steady and sustainable, and a somewhat predictable, then I think you can do a lot of good.  You may have to dig in your heals and work at it a bit more than when things were booming, but there are many of us who are glad to see the boom come to an end!

If you are considering buying or selling a property in an area that is new to you, please contact someone who knows what is going on in that community!  Whatever money you spend in paying commissions can certainly be made up for when you work with someone who has your best interest at heart and wants to see you happy in a good investment!

If you are in San Antonio, TX and would like to work with me on your next real estate transaction, please contact me!

Chris Cowley

www.ChrisCowley.com

210-389-6006