Do you feel that you missed the last housing boom? Are you afraid that if you don't take the appropriate action you will miss the next big housing boom? That is exactly what we are going to be discussing this week with a question that was submitted by one of our readers.

How do I keep from missing the next housing boom?

In order to answer this we must first understand a little about the economic forces that create a boom or bust. In order to have a boom we have to have three things: a supply, a demand, and the ability to purchase. Without all three of these elements we have what we see today. Today's real estate market is one characterized by a large supply, lower than average demand, and increasingly tighter lending requirements, which in turn lowers purchasing power. Those things together mean that prices have to drop in order to sell your home. Why? Lowering prices on homes on the market creates not only demand (people want a deal) but also increases the purchasing power (lower prices mean that something affordable to more people.) So as prices and interest rates drop the average consumer has more ability or purchasing power. That is why often you will see a news story that mentions the consumer housing affordability index. It is simply a number that regulators and market speculators use to gage the ability to purchase.

Now back to the question of how to get in on the ground floor of the next boom. Simple buy as many houses now, while prices are dropping, as you can afford. (Do not over-extend yourself.) Why? Because the key to any successful investing strategy is buy low - sell high. So if you want in on the ground floor of the next boom buy now while prices and interest rates are low. Hold your investment and sell it later when prices go up. This will work even if you only want to purchase one home for you and your family to live in.

Do you want more information about all of the programs out there making possible to get in on the next boom? Please send me a comment through my website:  http://www.norcalhomefinder.com/