When I was a pattern day-trader, I had a saying that is relevant to real estate as well. I always said, "You never try to catch a falling piano." Why? I think it's obvious that your chances of survival are very low. My wife has a baby grand 
piano sitting in our living room, and I can tell you from experience, it's really heavy.
The same is true in real estate. A lot of would-be buyers are sitting on the sidelines waiting for the bottom. That's where my old piano saying came from. So many traders were sitting around waiting for a stock that had taken a hit, for whatever reason, to hit bottom. Normally, by the time it hit bottom it took a big bounce back up and they missed it. I saw it over and over.
Housing prices are currently hovering around 2000 real estate prices. Interest rates are also at a five decade low. How much lower can these two
go? Not much. I've seen real estate in my community drop 50% in some areas, and even further in others. Most local areas have fallen 20-30%. There is a good chance they are near, or at bottom.
So, before a piano drops on you, get involved and buy that dream home that you've been driving past all year. It may be at the bottom, or it might drop another .05%, but I can almost guarantee if you're watching it, so is someone else.
Comments(9)