THEN AND NOW * BOOM AND BUST
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In this time - so strange for us all, many are reminiscing about the way things “used to be” and wondering what our new normal will be. Perhaps a little reminiscence about real estate would be appropriate since Group One Real Estate was founded in 1971 and has seen several economically stressed times.
Until the 1960s, homes were considered to be a “depreciable” item. FHA interest rates hovered in the 4% range since 1939. If market fluctuations called for a better return for lenders, sellers made up the difference paying “discount points." In 1966 FHA raised their fixed minimum rate to 6%, still requiring discount points.
The 1960s real estate market saw two major changes: Inflation of home prices and escalating interest rates. Many homebuyers tried to wait for rates to go down. Sadly, for the next 25 years, those people who were “waiting for lower interest rates” saw inflation not only move property prices up steadily and dramatically, but also increasing interest rates.
By 1970 a 9% single digit rate was a bargain. During the 70s, VA and FHA loan rates that had historically been “fixed," were allowed to float with the market. By 1981 the VA/FHA minimum rate hit a high of 17.5%.
1971 saw a new real estate company open its doors. That company evolved over the past 49 years to be the major local, family owned real estate office in Corpus Christi. We are Group One Real Estate and Group One Property Management, a Leading Real Estate Co of the World office.
OH YES...the BOOM, surging home prices escalated as much as 10-15-20% a year. Realtors and appraisers could hardly keep up with the upward trend. Corpus Christi Association of Realtors grew to almost 2000 strong; lenders made loans so freely that we laughingly said “if the buyer can make breathe on a mirror, they can get a loan”.
AND THEN…. The BUST. In the mid 1980’s, the financial markets and oil industry crashed. S & L’s closed, banks failed, homes depreciated, foreclosures were abundant. If there is one thing we know from being in the real estate business, life is a series of peaks and valleys.
Group One Real Estate experienced the recession of the 70s; crash of the 80s; recession of the 90s; financial recession of 2000s and now COVID 19. At each economic valley Group One diversified and expanded services to meet our client’s needs. With a second-to-none staff of residential realtors, Foreclosure/REO/Asset Management; International Relocation and Referrals and our sister company, Group One Property Management, we offer the best in professional real estate service.
-Sarah Graham BROKER/REALTOR EMERITUS, Group One Real Estate
With a second-to-none staff of residential Realtors Foreclosure/REO/Asset Management, National and International Relocation and Referrals plus our sister company, Group One Property Management, we provide the very BEST professional real estate service.
Let us put the puzzle pieces together for YOU.