What impact does the stock market have on the real estate market? Some would say for once the real estate market's loose rules for lending is what has caused the current implosion in financials in the stock market. Verses the usual where the economy tanks followed by the real estate market tanking. Few would get a whole lot of argument from anyone that the housing bubble and insane lending practices of the lenders led to this crisis. But the cyclicle side of the stock market tanking is that many people who may have been taking money from their investments to buy homes. And not just the lux market where CEO's and executives with large stock options have disappeared leaving the lux market drier than a bone in the Arizona desert. But also the average Joe or Janette nearing retirement in Minnesota or Chicago who may have wanted to sell everything and buy a home down in the desert to warm their arthritic bones. After all this is the year the baby boomers started to retire. I was born in the last year of the baby boom, so there is still 21 years left of boomers retiring. This demographic group has the largest valuation in assetts ever accumulated by a single generation in the history of the planet. This should lead to a lot of growth in the sun belt over the next 20 years as people continue to retire and want to move to warmer parts of the county. Including of course sunny Arizona which is where our opportunity lies.

Getting back to the stock market, usually the stock market turns before the economy does as a whole.  Wall Street can see from what companies are doing today, that it will impact and turn a company's earnings around in 2 or 3 quarters. That means when we see the stock market turn, we will see the economy as a whole turning a few quarters later. Hopefully the implosion in the financial sector will soon blow over. Granted we may be seeing a commodities bubble as the next to burst shortly. That will be a relief to those of us suffering at both the pumps and the grocery store.......and those of us in the real estate business as well.

Marc