They Say History Repeats Itself
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An opinion from personal experience for either Luxury Tahoe Real Estate or South Tahoe Homes.
They say History repeats itself. I have lived long enough to see that to be true. I have been selling and buying real estate since 1972 long enough to live through three economic Bell Curves. Usually it is a ten year cycle. The Bell curve peaked in 1991 and took a five year slide bottoming in the summer in 1996. 1997 was a flat year with a slow climb out through the year 2000. From that point 2001 on WOW! We enjoyed double digit appreciation in our real estate holdings for five straight years peaking in September 2005. We are into our third down year as of this date. If you follow History then it should continue and bottom in 2010.
Why buy South Lake Tahoe Real Estate now? Inventory is excellent here in South Tahoe homes, and the motivation of the seller is high. You might not be buying at the bottom of the market but unless you buy for cash I believe you are buying at the lowest mortgage rates you will see for along time. Remember it is a combination of buying right with lowest rates for affordability. What is different now is the price of oil. If you follow the markets like I do daily, you would know that we had a .6% consumer price index increase (Inflation) last month. I believe this will continue with the year end coming in around 10%. That is like you taking a 10 per cent pay cut. Investment in real estate long term is a great hedge against inflation. Chairman of the Federal Reserve, Bernanke is charged with the responsible to control inflation. His only effective weapon is to raise the prime lending rate. Do the math. I believe the affordability index in home buying is now, this summer not 2010 when 30 year fixed rates could very well be pushing 9%.