I’d like to touch on the state of the market and the state of the real estate market specifically. It just seems like everything is in total chaos.
-the economy is in recession, the stock market is plummeting
-huge banks are failing and going out of business
-insurance companies are having to be bailed out
-the big 3 automakers are on the brink of failure
-we have this enormous 700+ billion dollar bailout
Where does it all end? We should all be running for the hills right? I mean we would all be crazy to get into real estate investing right now, right? Well, sadly folks this is the attitude of many people these days and it is the exact opposite of what they should be thinking.
No question, there is a lot of fear and concern in the real estate market right now. We can’t turn on the news, read internet articles or turn on the radio without hearing gloom and doom and how terrible the real estate market is, but we need to be really careful in how we interpret or how we react to all the seemingly bad news in the market. I say seemingly bad news because I don’t view it as bad news at all. It is all about perspective.
Let’s talk for a second about the “so called� bad news in the real estate market. What is it that is scaring people off?
-Number of foreclosures at all time highs
-Housing inventory is way up – more homes sitting on the market than in a long time
-Number of vacant and abandoned homes sitting on the market
-Homes sales have slowed to a snail’s pace
-Difficult to sell homes
Is this bad news for us as investors? I would argue these indicators have created more motivated and flexible sellers than we’ve seen in decades.
Now is the time to take advantage of the current market conditions. I really believe that in the next few years people will look back and see that 2008-2009 were incredible buying opportunities. There will be more millionaires created in the current market than there has been in a long time.
Posted by Carter Brown
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