Fort Lewis Area Real Estate Market
Did You Miss the Bottom of the Ft Lewis area Real Estate Market?
In recent months, I have heard a lot of remorseful comments regarding missing the best deals of the recent economic downturn. While the market has improved, in some sectors by as much as 15%, there are still lots of great deals to be had…and interest rates (which have gone up) are still the best we have ever seen…ever!
We are much closer to the bottom than the top, and that can’t be argued with. I recently had a discussion with someone who was convinced that if the market went down by 20%, and then up 15%, we must be 5% from the high….I suggested a trip to the local elementary for a math lesson. If the market declined by 20% (some higher priced areas declined by 25-30%), it has to appreciate by 40% to get back to where it started.
If past real estate markets are an example, then this market will go back to where it was in 2007 fairly quickly (because of the “emotional attachment” people place on real estate, prices typically go back to their historic prices fairly rapidly, then slow to a more normal 4-6% annual appreciation). At the rate we are going, even with a winter slow down, I expect the market in the JBLM area to be back to 2007 levels sometime in 2014.
You haven’t missed the bottom…but if you wait, at this point you are just watching prices & interest rates go up. Opportunities abound in the real estate market…some will take advantage, and some will make excuses (missed the bottom) not to.