A Message From Woody Hogg

The Real Estate Firm-New Messages From Woody About The Real Estate Market

Richmond

Area

Market

Outlook

Fall 2007

Woody Hogg

Owner/Broker ERA Woody Hogg & Associates

As we enter the Fall of 2007, there are all kind of rumors and reports flying around that affect the attitude of buyers. There is no doubt that the number of sales have been down and it takes longer on average to sell a home. One would wonder how we went from the hottest real estate to one of the slower times.

My theory is that when Katrina hit the Gulf States the gas prices rose to $3 a gallon and the public was worried about the economy, heating costs, their jobs and numerous other fears. The interest rates had slowly crept up to around 7%. This is a good rate but not as good as the 5% or below that we enjoyed for a brief time. Builders, speculators, investors and buyers were jumping at everything and prices had risen dramatically. This could not continue. This year we endured the sub prime loan market collapse which was brought about by lenders lending to buyers that could not afford to buy.

The market came to a screeching halt almost over night. Where does that leave us? Today rates are back down to close to 6% for credit worthy buyers, there is an abundance of inventory and prices are more competitive today than pre Katrina. The confidence of the home buyer has eroded because of the doom and gloom primarily inflated by the main steam media. If you repeat something often enough people start believing it and it becomes the reality.

I expect that the last quarter will continue to be somewhat slow even though we are experiencing more positive activity. Let’s face it. Home ownership is the cornerstone of the American family. Most of us want our homes paid for or close to it when we get ready to retire. It is where we live, raise our families and enjoy the comforts it provides.

The real estate market will improve. This is the best time to buy in the last 2 plus years. The public is smart enough to recognize this. This reminds me of the fable when the king is sold a non existent suit and parades around naked but his subjects are afraid to tell him for fear of his retaliation. It took a little boy to shout out “the king has no clothes”! Sometime soon the consumers will step forward and shout out that “this is a good time to buy”!

Rates are low, prices are excellent and inventory is plentiful. It is indeed a good time to buy!

Woody Hogg

Owner/Broker ERA Woody Hogg and Associates

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