Here we are, about to say good-bye to 2007.   If you listen to the media you have heard how terrible the market is, and how we are all one paycheck away from being homeless.   Foreclosures have doubled and my goodness how will the economy survive?   Well, I  believe the  stock market jumped over 300 points last week so I think economy is chugging right along.

So let us talk about the real estate market here in Tallahassee.   We are 31% percent below the number of sales we had in 2006 for 2007.   Ouch.   Foreclosure numbers have risen.   Ouch.   So let us put things in perspective.   Our real estate  transaction numbers for 2007 are very similiar  to the numbers we had in 2002.   In fact, they are a little better.   Why is  that important you may ask?   Because 2002  was the start of that fantastic little market run we just had.   Another reason for optimism in 2008 is the fact that interest rates are still incredibly low.   Job growth has remained positive.   There are “pent  up” buyers waiting on the sidelines.   Oh, did I mention property values have only decreased 2% through this “terrible” year?   As for the foreclosure situation, let  us put that into perspective as well.   In a  nutshell 98.6% of existing mortgages are performing like they should.   Even with the “doubling” of foreclosures 98 out of 100 home  owners are current on their mortgage.    

What does this mean.   Well, it is open to interpretation.   Bottom line is those buyers who are waiting for some great price decline or massive sell off due to foreclosures may wait themselves out of the best time to get their best deal.    If you are a long term investor/ home owner now is a great time to purchase, and lock in a low, low interest rate.    The keys to a new home would fit under a Christmas tree.   Something to consider.