I read an Assoiciated Press story this morning that reported gold "closed out its worst year since 1981." And, yet, I have heard absolutely no commercials in recent months from Rosalind Capital or any of theother gold peddlers regarding what a great time it is to buy.
Crazy, isn't it, that a couple of years ago, when gold was at an all-time high, the airwaves were flooded -- and I mean flooded -- with commercials urging investors to jump in and buy. Everyone from Sean Hannity to G. Gordon Liddy served as pitchmen for gold, touting the fact that the metal was at an all-time high, thus making it a great time to add gold to a financial portfolio.
We in the real estate profession saw the same thing a few years ago.
Here in Beaufort, we saw buyers almost knocking each other out of the way for the chance to buy newly released homesites in communities where land was 20 percent more than it was when the previous homesites were released, six months earlier. And, the buyers from six months ago paid 20 percent more than the buyers from six months before that.
Everybody was buying high.
This, of course, demonstrates the extraordinary power of buyer enthusiasm. When everybody is buying, human nature makes us want to be a part of that. When nobody is buying, we tap the brakes and wait for others to lead the way.
Well, the great news for us in the real estate profession, is that buyer enthusiasm appears to be returning, however cautiously. And, as we have all seen, just a little enthusiasm can go a long way.
Personally, I do not yearn for a return for the free-wheeling, get-rich quick market of the early to mid-2000s. I look forward to a more stable market for 2014 and beyond.
Happy New Year everyone!!!
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