March 10, 2009

Finding a Home for Katy Marquardt!

This past week has been one filled with meetings and webinars relating to real estate. At Bush Intercontinental Airport in Houston, I perused the news stands for something interesting to read as I was preparing to fly back to Salt Lake City. Reading off line is getting to be a bit of a novelty as I walked through the airport witnessing the many travelers with their laptops and Blackberrys in hand.

As we flew over the Houston area I began to read about how the current economic down turn is changing our savings plans, stock investments, and retirement plans. I was curious to read the various articles on the stocks to pick in order to recover the losses of the past year. I quickly grabbed my real estate calculator to run some numbers.

If a person had invested $100,000 in the stock market at its peak, they would have a little less than 50%, or $50,000 remaining today. I began to look at the projections of future stock growth once we hit bottom and begin to build again. These prognosticators reviewed the historical 10% growth rate for the stock market over many years. Since I was invested in stocks since 2000, the stock market has gone don 19.8%, the S&P down by 35.2%, and the NASDAQ, down by 59.9%.

I am still looking for the 10% growth rate of the early 90s. During this same time period, real estate was up 72% at its peak and at the end of 2008 it had dropped to 69.2% since 2000. Most estimate the stock market will take awhile to come back and at a slower 7% rate rather than 10%. At a 10% rate it will take eight years to get back to where we started. At the 7% rate it will take us 11 years. Remember, that is just back to where we were!

As I continued to read I came across an article by Katy Marquardt, entitled “Time to Buy Stocks or a House?” (US News & World Report, pg. 57). Katy muses about her current one-bedroom apartment life and if she should continue to invest in stocks now they are cheaper; or in a house now that they are more affordable. She is worried that she might have missed her best chance to buy a home.

After some deep pondering she quotes Carmen Wong Ulrich: “A House is not only a symbol of financial strength and stability. It serves you with a roof over your head and a place to have family and friends. Priceless!” She concludes in her own words, “Stocks seem like the simpler choice, but buying a house guarantees a huge return for me— even if it’s not financial.”

Katy, let us help find you a home! This is the time for Buyers to make their move! Homes are plentiful and more affordable. Interest rates are still very low. Government incentives are set to help first time home buyers make that first purchase. Katy, you haven’t missed your window! Call or e-mail our office and we will get the process started. With our 4,700 Leading Real Estate Companies of the World^® offices scattered across the nation, we can help you find a home this week!

For the rest of the world you can search for home easily on this website! Don’t miss your window of opportunity. If you run into Katy, please have her give us a call!

Posted By: Steve Randall