Lake Nokomis Real Estate Prices

Prices are dropping. Doesn’t that sound like an oxymoron right now? With inflation out of control due to a weak dollar and high commodity prices most things are costing more and more. But not houses. Buyers and sellers in Lake Nokomis can capitalize on this situation.New listings in Lake Nokomis are down 12.4%, the average sale price is down 11.4%, and the percent of the original list price received at sale is down 2.2%. Why is this good? It is all about supply and demand. The increase in housing supply is driving down prices. It is making it cheaper to live in your home. That is great. People will have to spend less money to live. Now, it probably won’t be enough to offset the increase in the prices of gas and food, but there are a lot of deals right now. The average house price in Lake Nokomis right now is about $214,000. So if prices are down about 11%, that means it is about $24,000 less to buy a house in Nokomis then it was a year ago. Talk about cash flow, that is about a $144 saving every month. Not too much, but it helps. I talked to a good client of mine today. He owns over 50 rental houses and has been in real estate for over 25 years. He thinks it is going to be 5 years before things start to appreciate a lot. So why buy now? The answer I believe is inflation. I think inflation is going to get worst and the last time the United States was in a position like it is right now it was 1981. Inflation was high and the economy was slowing down. Federal Reserved Chairman Paul Volcker raised interested rate through the roof and that put an end to inflation . I believe this is one of the only ways to solve the problem right. We need to limit the money supply. But if we do this that will make it more expensive to borrow money, which at the end of the day, will make it more expensive to get a mortgage and raise your monthly payment. Buy now while prices are low and interest rates are low. I think it is going to get worst.