Talked with someone today that reminded me that the definition of news is the reporting of the abnormal, not the normal. So as I see it the negative news that the real-estate industry has been receiving has been the abnormal behavior of the market not the normal. Normal people are making money on their real-estate investments and normal people are paying their mortgages. Most people are normal thus not newsworthy.
I have worked very hard this year to overcome the negativity and have succeeded in increasing my volume from last year. But I had to constantly read and listen to positive economic speakers. Those people are the ones who could give me the quotes I needed to tell clients everyday, why this is not a bad market. In Virginia, salaries are not going down, unemployment is low, and we have low interest rates still. I believe that markets do follow cycles but have seen nothing in our area to warrant the increase in inventory except negative news.
When the dot com market bombed.. many left and invested in real-estate. Those folks made high percentage gains. But the cycle has not run its course; like every other markets, it is merely doing what all markets do, adjusting.
Is it possible that the news is owned by the stock market and they want investment money back in their market. At least real-estate is tangible and does not rely on the whims of a few executive mistakes. Real- estate is not day trading, but the methodical developing of an investment portfolio. Buy low and sell high,and trade up. And if people keep waiting to buy, the market will rise again with out them; just as many waited to long to sell, knowing that their housing needs were changing.
Eventually this market will see leaps and bounds again. After all what is inflation but too many $ chasing too few goods. Isn't real-estate by its nature a limited commodity. Those folks that are buying now will certainly reap the benefits in the future. Patience.
Wanda Fears
wanda@wandafears.com
804-909-2777
www.wandafears.com
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