Have we hit bottom? 08/20/08

I get asked all the time if we have hit bottom in the real estate market.

I am starting to think that are economy is getting better and I will tell you why.

I noticed that the dollar is getting stronger. Gas prices, gold, and silver have dropped quite a bit.

That right there is an indicator that the average consumer can start spending money on other things besides food and gas.

Our market here in Idaho Falls has been pretty good. The appreciation rate in this area is currently at about 2.3%. It has been 6.3% in the past. It has slowed down a little, but really not that much.

All though there are a lot of things for sale, you almost never see a foreclosure in this area. See my earlier post on what I think of foreclosures.

If you can get a loan, I think now is a great time to buy. The interest rates are still relatively low and prices have seemed to stop climbing for the moment.

This area never really had any huge fluctuations anyway. It has been a slow and steady 6% over the past 10 years.

The economy always seems to suck during an election year. I have been through two recessions, and it just doesn't matter how hard you try, the money just doesn't flow freely.

I think as banks recover, you will see the money losen up.

I think it will also help to have a new president that people can have consumer confidence in again.

I hope this helps you understand if we have hit bottom or not. The truth is no one knows.

Buying sometimes takes years for you to say, man I am glad I did that since my home has gone up X$$$ in value. It seems like it is always expensive the moment you buy anything.

Thanks Burke Bennett
http://www.seidahohomes.com
burkebennett@hotmail.com
208 589 5599