Checking The Water's Depth

How Deep Is The Water?
Deutsche Bank issued an ugly projection this week that 48% of American homeowners will be underwater by the first quarter of 2011. Of course, this figure did not come out of thin air. Deutsche already estimated that 27% of Americans were in that position during the first quarter of this year. Combine that with higher unemployment figures, tight credit, and less-than-booming house prices and it is easy to see why there is concern that numbers have not bottomed out yet.

On the other hand, a Deutsche Bank estimate only means so much. Certain variables are too difficult to track because they are so fluid. Home price stabilization has been occurring recently, and if that holds on for the long term, a great deal of the negative equity being forecast will not happen. Granted, there is justifiable concern about an upcoming wave of foreclosures coming just as the summer selling months end; however, most analysts have been pleasantly surprised by just how many buyers have entered the market even after adjustments are allowed for the seasonal peak.

Uvestor Opportunity:
Take advantage and bolster consumer confidence. The fact that buyers are exceeding expectations this summer means that there is room for optimism in every sale. An entirely new and tech-savvy generation of first-time homebuyers is entering a dream market of low mortgage rates, adjusted housing prices, government incentives and a wide variety of available properties.

Make sure your property is being seen by this group. Make sure your presentation features crisp photos and emphasizes the positive. And finally, make sure your potential buyers understand all of the benefits of purchasing right now.