Opportunistic buyers remain hesitant in the residential marketplace

The residential marketplace is never easy to predict and today the industry is more volatile than in recent memory. So where does that leave potential buyers? As a title insurance executive, my ear is always to the ground when it comes to evaluating the real estate marketplace. Anyone in title insurance can tell you that volumes of purchase and sale transactions are down significantly. Anyone can inform you that the refinance market is limited given the extremely low rates that borrowers became accustomed to in recent years. However, very few mortgage bankers, real estate and mortgage brokers, real estate developers or third parties are willing to go on record as to which way the market is moving. There is much to consider. Disregard the majority of the media's negative publicity regarding both our marketplace and the general state of the economy. Every article is contradictory. Some argue that we are in a recession. Our own President tells us that we are not and that the worst is over. Who do you believe? Today's economy is characterized by volatility. In a historic move, Bear Stearns was taken over by JP Morgan. We all know that it costs a lot more to fill our gas tanks than just a few months back. Food prices are rising. Every day we are assaulted with all types of contradictory economic data. And surely not many properties are trading and there are many more "for sale" signs hanging in our neighborhoods. What does all this mean? What advice would a title guy like me give? Buy now! Yes, I said it, buy now if you are in a good position (and don't forget to pay for your title insurance at closing!). Of course such a statement to buy cannot be viewed as the gospel. Many Americans are dealing with difficult foreclosure problems, job loss or other unfortunate circumstances that make buying a home next to impossible. And it may not be the best time for many to downsize their current homes given that the general marketplace is down value-wise. However, for families or individuals looking to "trade up" or for those desiring to purchase their first home, "now" is the time. Certainly rates are not as low as a few years ago, but rates are historically very low right now. That coupled with a marketplace price decrease makes "now" a very attractive time to purchase residential real estate. Don't try and predict the bottom of the residential value curve. It cannot be done with any degree of certainty. Values will surely start to rise again. Just realize that we are in an environment where most sellers have lowered their sales expectations and the interest rate market remains very attractive. Buy now and take advantage of a very unique opportunity. Cheap rates and lower home values are two partners that don't travel together very often. Brian Fitzgerald is a vice president and counsel to National Land Tenure Company, LLC, Garden City, N.Y.