We live in a world that is filled with almost instant communications. This has been a change that has heavily influenced how we make decisions in our daily lives. The media knows that they get the most reaction from negative news; so therefore, that is what dominates the airways.
In making economic decisions, you should always look for situations where the majority overreacts in a direction. This means that over time this over reaction will correct itself. For those with a little smarts and a lot of courage this presents a great opportunity. Whether you are considering buying stocks, autos or real estate, there may not be as good an opportunity as we see today for a long time.
I do not consider myself an expert in the other areas, but I know it is a great time to be making real estate acquisitions. If your thought is, I have a home to sell; therefore, if I wait until the prices go up then I will have more profit to put down on my next home. This thought process only correctly applies if you have an expensive home and want to get into a small less expensive one. If you want to get a home that is equal or greater in price, selling and buying now makes the most economic sense. If you wait two years and your $100,000 home goes up in value by 10%, you will get $110,000 or a $10,000 gain. When you buy the $200,000 home you can buy today, it will cost $220,000 or 10% more. That is a loss, but not the big one. Interest rates are the big variable. If you buy now at a 5% rate or wait two years and rates are at 7 1/2%, which is very likely, your payment will increase by 50%. Now that will hurt and maybe even make it impossible for you to make the move you consider right for your family.
By listening to the news some would be led to believe it is difficult to sell a home but that is not true. It is true that the number of sales are down, but the number available for sale are also down. Well kept homes that are priced competitively sell fast in today's maket and sellers do not have to give up serious concessions to buyers.
The question is, do you have the courage to pull the trigger and go against the crowd? Those with courage reap the benefits and those controlled by fear continue to complain how bad things are. If you would like to discuss your personal situation, please contact me. I will do my best to help you see the true picture and opportunities that my be available.