Matt Hermes

The Commerce Department said Wednesday that construction of new homes and apartments rose 2.8% last month to a seasonally adjusted annual rate of 591,000 units. That was better than the 580,000 economists were forecasting.

As we head into the second quarter of 2010, we expect continued modest gains in both new home construction as well as re-sale activity. While pricing in both continue to be pressed downward and there continues to be a steady flow of foreclosures coming to market prices should start to stabilize in the coming months.

For more information click on the link below:

http://www.usatoday.com/money/economy/housing/2010-02-17-housing-starts_N.htm

There is one thing that is a constant in the real estate market that has been proved over and over through the years that I advise my Sellers and and sometimes Buyers on a daily basis.

You cannot Buy low and Sell high at the same time.

Something has to give. The question is what.

If you are in a shifting or shifted down market, and you are looking to get a "Deal" on a home you probably can. Right now there are a lot of really good and I mean really good deals out there for you and I can help you find them. Potentially you can get a home at a steep discount and in the long run make a killing on your investment.

If you have no home to sell, even better, but if you need to sell your home before you can take advantage of that "killer" deal you need to realize and face the facts that the person who is looking at your home to purchase is trying to do the same exact thing that you are on your purchase. They want a deal. Not just a deal, The Deal.

As the old saying goes, "You cannot have your cake and eat it to". Sorry to spoil the fun, but facts are facts here.

We cannot sell high and buy low.

It simply does not work that way.

In a down or Buyers market, in order to sell your home, you are going to need to be priced in line with your competition. Price the home too high and you will sit on the market. There are too many great deals out there and pricing is key. Yeah, you may loose some $ on the front end of the deal, but will make it up on the back end (Buy side).

When we are working in a Sellers market, the roles are reversed. You are in a great position to make some cash on the Selling side of the transaction but more than likely the Buy side is not going to be that sweet a deal. Can't happen. If we are in this type of market, inventory is low, buyers are plentiful and prices are up. What makes us think we can then sell our home at a premium and buy at a discount.

So you have to make a choice. Personally I would rather take the hit on the selling side of things in this market, especially if I am moving up in price point. There is lots of money to be made on the buy. Remember this also, it is not what you sell it for which determines how much money you make, it is what you bought it for that makes you the cash.

My two cents...

I have seen a lot of marekting recently stating that "We are the best in this" "We list more than ...". People get your facts straight before you deceive the general public.

If you are the best in this or list and sell more than that, awesome. Good for you. Keep up the good work. I am happy for you. I mean it.

However, if you are not sure, or do not have the proof to go along with your statement please rethink your marketing strategy. Don't worry I would never rat you out. However, others will and that is those are the ones you need to be careful of.

Just sayin'

For the first time in a couple of years, the listing inventory in the Hamilton Mill Subdivision in Dacula GA is under 80 active listings! Currently 18 of the 78 active listings within the subdivision are either foreclosures or short sales. Almost 25%! Wow.

Typically we run somewhere in the 5% range (100 listing / 2,000 home subdivision) and to see this drop well below 100 is pretty interesting on a couple of fronts.

Couple of points to consider:

First: Less inventory obviously means fewer options for Buyers. Fewer options means the potential for price increases coming.

Second: If you are looking to sell, now may be the time to get your home on the market. We are seeing a good increase in activity and with less inventory than we are used to, the time may be right to get the home on the market and sold.

I could go on and on about the pro's and con's of inventory, sale prices, foreclosure numbers but my main point is this. Inventory is down which means something.

Want more information, give me a call.

Yeah, I know that by now, most if not all of us have had enough of hearing what 2010 holds in store for us.

What the experts say the economy will or will not do.

How will the housing market change if at all, and to what extent if any the market rebounds or stays in crisis mode.

The unemployment rate will do this or that and what happens either way it goes.

Blah, Blah, Blah.

Here is what I know.

I am going to do everything I can to stay positive and make 2010 the best year in real estate I have ever had. Positive thoughts? You betcha! We cannot control what others feel, think, do or say. However, I can control my own destiny. With that being said, here is to a prosperous remaining 50 weeks of 2010.

Go out and make it happen, make it a GREAT DAY and as Southwest Airlines says "It's On".

Matt Hermes