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The housing market is like an Oil Tanker, not the Titanic

By
Mortgage and Lending with Franklin Loan Center

01/21/2008

Rest assured ladies and gents that the real estate market is not sinking.  I may be an optimist, but as we all know Real Estate is cyclical.  The corrections of late will allow us to move higher in the future.  The analogy that the housing market is more like an Oil Tanker than the Titanic is fairly accurate given the above statement.  The market corrects it self and although it may not turn on a dime it will turn eventually.  Slower than most in our line of work would prefer, but it isn't a sinking ship.  The housing market always comes back. People will always need a home, even in the worst market in 30 years.  Also, the investors will come back.  They always do.  It's a capitalist market and when we reach the bottom, greed takes over.  Investors and Joe and Sally Homebuyer will see that it's time to buy and the Tanker will begin to move away from the downslope and return to it's beautiful and powerful upslope.  Mortgage rates are at the lowest they've been in 2 years, so if you have a buyer on the fence now is the time. 

Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
Andrew, good analogy about the oil tanker.  A bigger concern in my opinion is the decline of the dollar after decades of deficit spending.  The chickens are beginning to come home to roost.
Jan 21, 2008 09:14 AM
Kurt Vierheller
Flagstar Bank - Wilmington, NC
This market is going to rebound in effected areas and the area I work in is extremly busy. This is the best start to a new year ever!
Jan 21, 2008 09:21 AM
Esko Kiuru
Bethesda, MD

Andrew,

The oil tanker is already slowly turning to find its proper course. Mortgage rates are way low and the fence sitters are cautiously coming down, at least here in Las Vegas, to take advantage of the bargains they see throughout the valley.

Jan 21, 2008 09:28 AM