Recent gyrations of the stock market seem to resemble the vicissitudes of the stock market. With the stock market dropping hundreds of points in a single trading day, it is starting to get some negative press like the real estate market has been getting over the past year or so. The key point to understand is that the recent, brief correction in the stock market is normal and, in fact, healthy for future price appreciation to take place. The overall market is several percentage points off the all time highs set recently. There are many compensating balances pushing and pulling on equities such that the market remains healthy and likely to resume it's historical track record of returning approx. 8% on a long term basis.
The real estate market throughout the US has clearly corrected in a significant way. However, when one takes into consideration the price appreciation of the past 5-7 years, the correction becomes more understandable and again, healthy for putting in a more solid foundation for further price appreciation in the future. Whether one measures the stock market or the real estate market, these corrections build bases that can support higher highs that would not be possible without them.
So, let's keep working on those listings and convincing buyers that the sky is not falling. The pendulum has been swinging in a southerly direction for some time but, it will start swinging to the north sometime soon. If it is anything like the turns in the stock market, it pays to buy in the darkest part of the tunnel-- OK-- enough of the mixing of metaphors-- let's get back to work.
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