Statesboro Georgia Real Estate Update - March 2010

2010-03-24T06:34:00.000-07:00

Where is the Statesboro Georgia real estate market headed?

I get asked that question a lot and for good reason. If you watch the news, you may feel like cashing in, buying a lot of gold coins from G. Gordon Liddy and heading for the hills. There is good reason to be alarmed but you have to also keep things in perspective.

The good news is that we have historically low interest rates coupled with good tax incentives right now.

The bad news (notice this section is larger than the good news) is those tax incentives - which have really been helping the market improve - are about to go away in April. With the Federal Government suggesting it will hike taxes, in some cases considerably, and the fact that many local governments have tremendous short falls to make up, it suggests that consumers will have less money in their pockets and accounts to spend. Consider how that affects retail spending in a negative way, the resulting job loss, the threat of inflation from the government spending (and interest rate increases) and the potential commercial real estate financing problem looming just around the corner and you see some serious warning signs. The Federal Health Care bill adds to many consumers concerns about increased taxes which tends to make people more conservative when it comes to purchases.

How does it affect the timing of home sales? I suggest that if you need to sell your home sometime this year, I would sell it now - capture the springtime momentum as much as possible and use the tax incentives to your benefit. Once they are gone, many buyers will jump out of the market and that will mean less demand and negative pressure on home prices.

Banks are not lending like they were and new rules mean fewer people qualify for mortgages . This suggests we will see more activity in the lower price brackets. New FHA regulations will also make it more difficult for buyers to qualify for as much home as they could before - this compounds an already difficult recovery.

The Statesboro Georgia real estate market has not experienced the problems the national news suggests however. Atlanta is a very different place then Statesboro. Many of our nicer neighborhoods are still just as nice but there are deals to be had. When a foreclosure comes on the market in an expensive neighborhood for 75% of the cost of adjacent homes - it does affect the market in one way or another. Many of the foreclosures are not in the more sought out neighborhoods which suggests foreclosure sales will have a greater affect on lower priced areas. Many also are not in the same condition as a non-foreclosure and each piece of property is unique in one way or another. While they are not a one for one comparison, at some price foreclosures attract buyers from non-foreclosures.

I have been helping clients for over 15 years. Give me a call today for help with your Statesboro Georgia Real Estate needs.