Fortune Magazine: The Return of Real Estate!

Paraphrased by Dr. Marshall Reddick

“FINALLY! After years of plummeting home prices, the market is showing signs of a turnaround.” This is the headline written in BIG, BOLD letters directly on the front cover of this April’s edition of Fortune Magazine.

“FORGET STOCKS, DON’T BET ON GOLD, AFTER FOUR YEARS OF PLUNGING HOME PRICES, THE MOST ATTRACTIVE ASSET CLASS IN AMERICA IS HOUSING, IT’S TIME TO BUY AGAIN.” Taken directly from the article, it’s obvious that Fortune is seeing the signs of a turnaround and is confident enough to proclaim the news across the world.   

This is the first major publication to speak positively about the current real estate market in years and boldly recommend that this is the time to purchase. Publicity like this can have a huge impact on sales nationwide. In fact, our network has already seen an uptick in sales this month in May. An article like this from a global business magazine like Fortune can have a very strong affect on consumer confidence that will ultimately lead to an increase in sales nationwide over the coming months.

But why this is the best time to purchase?

The answer: Because it’s cheaper to own than to rent!

The reason Fortune magazine feels this is the best time to purchase is because it’s cheaper to own property than to rent for the first time in many years. The number of young adults entering the real estate market is steadily rising as prices remain low and capability of young adults to acquire financing stays strong.

As the overall population of our country grows at an ever-increasing rate, we will see saturation of properties shrink over the next couple years which will lead to a jump in new home building. This is a cycle of I have lived many times, and we are on the cusp of recovering.

Source:  Fortune Magazine, April 11, 2011 Page 79-88       

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