A Reason to NOT Buy
February 27th, 2008I got a call recently from a real estate client. Whenever the mood hits him, he phones us to find out the real estate market conditions here in Cape May County, New Jersey, and more specifically in the Wildwood, North Wildwood, Wildwood Crest shore area. He knows we have our finger on the pulse of the market. And he knows I always have an opinion, good or bad. There’s no BS.
Our conversation began with my monologue on how busy we have been since mid-Summer, 2007. He heard the same thing from me back in October during our last talk. “It’s still going great,” I added. “We’ve just had plenty of closings in January and February, plus we’ve got several more properties ‘under contract’ and we’re in active negotiations on a few other deals.”
Sounds like typical realtor hype, right? Actually not. This client knows that when the market started to stall in mid-2005, even though few recognized it, we were quick to alert anyone who’d listen that it was NOT the time to buy. Conditions were changing. We could just sense it. Something was amiss.
Just like a recession, the signal that a real estate market is going up off the charts or down into the hopper isn’t generally acknowledged until you are a half year or more into it. The thinking is that it isn’t a trend until it has been sustained for a while. That’s fair enough.
By 2006, much to the chagrin of City Girl, I openly admitted that, as realtors, we were losing our shirts. The real estate market was dead, the phones weren’t ringing, and we went weeks at a time without any walk-in traffic. It was disheartening. And we told our clients so. Honesty is so much more refreshing than deceit, and definitely easier on your conscience.
Fast forward to my recent phone call. “Give me a reason to buy now,” the client queried, “Why buy?” I was ready.
“Give me a reason to NOT buy,” I quipped. “Interest rates are at near historic lows, inventory is plentiful, and the range of selection is great. And as you know, prices are down $100,000 to $150,000 or more from 2005.”
“Remember all those sellers you were envious of back in 2003 and 2004? The ones who had bought in the bad real estate market times of the late 1990s,” I continued. “You thought how smart they were to be cashing out on their investment a few years later and making $100,000 or more, sometimes much more. Well, the cycle is repeating.”
“You’re right,” he said, the wheels turning in his mind. “Tell you what. Email me some investment property listings, then I’ll pick a few and we’ll go look at them this weekend.”
”Is Saturday or Sunday better for you?”, I replied, knowing that another client - and friend - was about to make some money.
- Mountain Man
To find out more about investment properties in Cape May County, visit our website at www.JewellRealEstateAgency.com















