Our throwback today is to the last couple of months of 2005. The Federal Reserve was raising rates, real estate prices continued to rise, and Nancy had just moved the office from Clinton to Ridgeland. Well, it's now 2017. Yesterday, the Federal Reserve raised rates, the real estate prices are rising, and our office is still in Ridgeland. As Matthew McConaughey's character said in True Detective: "Time is a flat circle."
I didn't think you could blast me out of Clinton with a stick of dynamite, but in August I moved my office to Highland Colony Parkway.
The old real estate mantra of "location, location, location" is still true. Highland Colony Parkway winds through Ridgeland and Madison without leading you into traffic jams and construction zones. It's quiet. I can see a pond out my window. I just seem to concentrate better here.
It's taken a couple of months, but I've finally unpacked MOST of the boxes. I've managed to nest fairly well - painting, hanging pictures, and generally "spiffing up."
We have new phone numbers, along with a new address. Attached is a business card with all the new information. Keep it handy. And if you find yourself on Highland Colony, pop in. I'll give you the tour and a cup of coffee.
The Federal Reserve raised rates once again. We now stand at 4.0%. We have survived the hurricane season with a lot of physical damage, but little economic damage. Retailers are looking forward to a healthy Christmas season. Despite the shock of Katrina, the rest of the year looks positive.
Real estate prices continue to climb. Surprisingly, prices are rising along the Mississippi Coast. Houses left standing are at a premium, as residents scramble for shelter.
Over the last five years, real estate prices have risen, on average, 50%. That certainly beats the usual 4 to 6% per year generally expected. Pockets of insanity can be found in California, the Eastern United States, and along ANY shoreline (hurricanes notwithstanding).
Meanwhile, home sizes are increasing. Toll Brothers Builders reports that its average home plan is 1600 square feet larger than it was five years ago.
The average 30 year mortgage rate sits at 6.50%, still quite low. The pre-Katrina rising inventories have evaporated, making the talk of a bubble moot... for now. So, live it up. Home sweet mansion!
--Nancy's New Perspectives Newsletter, Volume 45, November, December, 2005