Finally, Some Good News!
April 15th, 2008 categories: Our Market
Are you sometimes afraid to even turn on the TV because you know you are going to be bombarded with more bad news? I know that I will sometimes opt for music while I’m cooking dinner in order to keep the mood lighter. I know for a fact that negative news has a dramatic effect on consumer confidence and that sometimes, in an effort to sell news, the media can cause significant deterioration in market performance.
Real Estate is no exception and is a perfect example of the media leading the market further down the path of destruction. If you recall several years ago when the housing sector first showed signs or mortality, every other article was about the Housing Bubble. In fact, prices were increasing at an unsustainable rate and lenders were making unsound decisions in lending to individuals who could not really afford the loan payments. And yes, the Bubble did certainly Burst. Foreclosures are commonplace in our neighborhoods and we probably all know at least one person who has fallen prey to a bad investment in the last couple of years.
Which brings us to where we are today. The bad news is still coming but sprinkled in are stories that bring a little sunshine into the arena. I found this news story as I was perusing YouTube looking for Real Estate related articles. It originally aired a couple of months ago and momentum in our local market has been increasing recently. Not that we can credit this broadcast with turning the market but it doesn’t hurt…
I think it’s obvious to most that our market still has some price instability but I think for the first time in five years, the rewards of buying Real Estate may out-weigh the risks. It’s important to buy within your means and use a lender that you trust. Base your home buying and loan selecting decisions on your longer term plans and goals. Real Estate was never really intended as a short-term investment. There certainly have been those times where it made many considerably richer in the short term but if you buy with long term in mind, your risk factor falls to almost zero.
And remember, always use a Realtor…
