I spent the week of January 19-26 at an all-inclusive resort in Punta Cana, Dominican Republic, and returned to Nashville on January 27.
A week at a luxe resort: warm breezes, gorgeous views, immaculate landscaping, excellent service, lots of food, lots of cocktails, lots of lounging. Like being on another planet.
Returning to: freezing cold, power outages, downed trees, impassable roads, and many of my fellow citizens living in cold and darkness. Not to mention a couple of clients seriously worried about the condition of their property which, because of the ice, is inaccessible at the moment.
Whiplash! Disorienting, to say the least!
This reminds me, however, that certain things remain constant. On average, Americans are richer than Dominicans, but we all want the same things – food, shelter, community, recreation, a sense of purpose. We have disasters – they have hurricanes and earthquakes; we have tornados and ice storms. We all recover.
It’s life. In the Caribbean. In Middle Tennessee. Which brings me to real estate.
As I’ve said a number of times in this space, a house (or condo, or whatever) is a place to “do” your life. It’s a big investment for sure, but it’s so much more than that – a canvas on which to paint your personal story. Everyone everywhere wants and deserves a good place to live.
So, how does that play out on this freezing, ice-bound mid-winter day in Tennessee? May be hard to believe it, but this is the perfect time to buy.
At plus/minus 6%, interest rates are a whole 1% lower than they were a year ago. While they may drift somewhat lower in the year ahead, they aren’t going back to the record lows of a few years ago, and if you look at history, 6% is a pretty solid deal. Inventory was up by 13% in December – so, you have plenty of properties to look at.
Shop now. Don’t wait until spring. The conventional thinking is that there will be more inventory in the spring because sellers often wait to list until spring. And sellers do that because they assume there will be more buyers in the spring. It’s a circular argument.
Right now, there are fewer buyers to compete with, and inventory is more than adequate. Aside from slogging through sidewalk slush and soggy yards, this is the perfect time to gear up for the search and beat the rush.