I watched the Today Show 3 weeks ago and Matt Lauer interviewed Barbara Corcoran (multi-gazillionaire investor in New York City) and was asking her if the housing market has hit bottom yet?
Then for the 3 weeks following this interview, positive economic news has come out: 1) more new home buyer traffic in model homes reported by builders (highest volume in 3 years!); 2) 5 weeks in a row of declining initial unemployment claims; and 3) a possible resolution to the European economic crisis announced today.
Because more economic indicators are pointing to the inevitable fact that we MAY have hit bottom (halleluja), I revisited the Matt and Barbara interview online and listened to her answers again.
"Barbara, what do we look for in a neighborhood to let us know that the Housing market has hit bottom and to know that we are buying a house at the right time in the right neighborhood", asks Matt.
5 things that Barbara Corcoran tells us to look for in a neighborhood to know we are buying in the right neighborhood at the right time (housing market has hit bottom):
1) Do you see new cars in the neighborhood-new car stickers in windows of inexpensive cars?
2) Can the neighborhood income afford the average house?
3) Are the cheap houses selling? The recovery always happens from the bottom-up, that is to say the cheapest homes sell first and then works it's way up to the most expensive homes.
4) What's the average price per square foot? This is when you need a Realtor to help, numbers don't lie; this is how you find the best buy!
5) Are there a lot of for sale signs? If so, the bottom hasn't been hit in that area, town or neighborhood.
Use Barbara's list of 5 items to buy the right house in the right neighborhood at the right time!