I know we are going through some interesting times that try people and their circumstances right to the limits. The uncertainties about the future abound creating fear, panic, despair, and loss of hope. This is not the way to go and.... is far from being accurate. Why is it that after having 17 previous Real Estate cycles, we have not come to respect them or understand them.
Each cycle has its own dynamic. But here is the point of this post that connects them all. The one thing that drives, dominates and finally prevails in the end is.............
THE POWER OF PENT-DEMAND and how it must be released.
This is almost a universal law. THINK: Volcanoes operate this way. Water will seek its own level and not be stopped until it does.
The dynamics at work......
One force or forces start to gather momentum and speed..... over existing forces that dominate causing them to shake, rattle and roll finally giving way to the new forces. Then, these forces rule for a while and at some point, the WHOLE PROCESS repeats itself......
The good news.....
1. Builders want to build and cannot sit idle. Their business plans are constantly subject to review
2. People love to buy. Whether they have money or not, they like to buy things.........
3. Investors need and want to invest similar to Dracula having to have his nightly cup of "RED"
4. Banks need and have to lend. That is their business plan and they are not going anywhere soon.
GETTING THE PICTURE YET........?
The bad news....
1. Stubborn BOTTOM of the Real Estate cycle. This thing is like a piece of gum from hell that sticks to your shoe and wont come off without paint thinner, hammer and chisel. But it will come off.
2. Their are wild cards that no one is clear about or how to handle exactly. The government bought us some time until we can UN-HIT the economy "PAUSE" button. Things will show themselves and then we will solve it. We have done it and will continue to do it!
3. Unemployment be gone already. It is a problem. It is ALWAYS a problem. We know this. People are going to have to learn how to save $$$. Hope for the best...prepare for the worst. It lightens the cycle up. Noteworthy: Japanese people save 1/3 of their income. If things get tough, they don't stop, they just cut back. People who lived through our depression and two World Wars....understand and respect that mechanism. Perhaps now is the time for you to learn this.
The good news about the bad news...
Please keep in mind that Nature cleans house ever so often and is quite efficient and effective about it. It is Mankind that objects and tries to manipulate the process. Most of the problems we are experiencing has come from us and by the same token,..... can be cured by us. This mess, created a larger spill to clean....takes a little longer, but will and can......... be cleaned up.
Where did all the money go that all of us lost? It is still out there because we know money just changes hands. It is like the water on the earth. We are drinking the same water that has been here since creation. It just gets recycled......Which brings me back full circle on my cycle.....Real Estate cycle...that is.
We are going to hear a loud BOOM when the pent-up demand finally kicks in. Will it take us on a long prosperous journey or just help us into the next year or circumstance? Who can say? It is coming.....
DON'T UNDERESTIMATE THE POWER OF ..........PENT UP DEMAND...... It just does not go away..........
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