Buy low, sell high is one of the most basic fundamental of investing. We all look back and kick ourselves on why didn't we buy that Microsoft stock. Why didn't we invest in company XYZ when it was cheap. Instead people jump on band wagons like Enron.
This also defines today's real estate market. For the last five years home prices rose and rose. More and more people jumped on the bandwagon Prices rose out of sight and lending standards lowered. This year the bubble burst. There is record inventory and prices have dropped.
Which brings us to our current state. Given the large inventory and long days on the market, there are many bargains on the market. For renters and even the trade up buyers, it is time to buy low. First time home buyers can find seller concessions and low prices. Trade up buyers may have to grant those concessions but will save even more on the trade up.
Our job as professionals is to advise our clients that this is a great market, not a bad one. I realize it is a challenge but not as tough as the first stock brokers who recommended a company started by college drop outs.
Comments(2)