The National Association of Realtors has had its share of battles this year, but none is more frustrating than the national media telling homebuyers that investing in a home is a stupid idea.
First, they keep trying to make real estate into a national market (real estate is a LOCAL market), and then they treat the approximately 2 percent loss in housing prices for 2007 like the Crash of 1929.
From the Housing Bubble to the Mortgage Meltdown, the press has been relentless, even though most people have lost more money on their SUV's and their stock portfolio than their homes this year.
It's time for a little perspective here, folks. Here are a few facts the NAR would like the media to remember: please click here for the full article.
MESH is completely right in trying to bring some sort of prospective on what has been a media frenzy foretelling doom-and-gloom. Putting aside what could be viewed as an agenda for many media factions to get America to believe that bad economic times are here, lets just concentrate on the real estate market.
As MESH stated, real estate is nothing BUT a local market. To compare the market in California with Massachusetts or Florida is similar to comparing record sales of hip-hop with country-western or pop. Although they reside under the same general umbrella, each has its own unique environment.
No doubt there has been some readjustment in some real estate markets that has sent ripples throughout the nation due to the media hype. However, both historically and analytically, there is no better investment medium than real estate.
To believe that all real estate assets appreciate continuously is naive and dangerous. It causes speculation and risk-taking beyond safe boundaries. Hence, the current sub-prime mortgage mess that exists.
Your real estate holding will, over long-term, bring yields that far exceed other investment mediums. Provided, of course, that the location of your real estate continues to provide the support for appreciation. Meaning that the local town or city councils promote plans that provide growth, security, and good schooling.
Although some may find this cruel, hard times always provide great deals for those that are positioned well. A real estate downturn can easily provide great investment opportunities for some. One person's loss is another person's gain.
Keep your head during these times and don't get stampeded by the media and powers that be into believing that there necessarily is a real estate downturn or problem in your area. Trust MESH or your trusty realtor to give you the true assessment of your local market.
Posted by: james coughlan | January 09, 2008 at 11:27 AM