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Perception Is Reality

and so, misperception is fantasy?

According to most of the major news sources; Fannie Mae and Freddie Mac are on life support and Indy Mac should be tried as a war criminal. Combined with the current price for a gallon of gasoline and the "weakness" of the U.S. dollar, one would be INSANE to buy a home today, right?

"Buy Low, Sell High"

That's how one makes money in the stock market. Well, that's also how one makes money in the real estate market! After all, real estate is a commodity, an investment and a tax shelter. But it's more:

It's a dream (Home Ownership)

It's a lifetime

It's a family

It's memories

It's many different things to many different people. Can anyone place a price on a lifetime, or period, of memories?

20/20 Hind-sight:

Remember the late seventies, early eighties? Remember the late eighties, early nineties? Knowing what we know today, is it safe to say we all would have bought homes then if we could have? Of course we would have! Why then, are we scared to death to buy in the late 0's?

What does all this have to do with real estate in Toms River, NJ?

Everything! Although all real estate is local, perception is not. We, as consumers, are influenced by national and global news, events and yes, trends, or dare I say it, fads. We like to buy what everyone else is buying, when they are buying, and vice-verse.

So, a "bedroom community" within an hours drive of the financial capital of the world, with access to the Atlantic Ocean and the Pinelands, is prone to the same prejudice and social pressure as every other "place to live", or is it?

Posted by Jim Flanagan on 07/17/2008 08:55 AM

toms river, nj, real estate, perception, reality

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2 Comments on Perception Is Reality

Jim, you are also describing Los Angeles & Orange County CA except a different ocean. I agree that Location will always be a vastly important consideration in future value. But right now obtaining capital to make that purchase is the primary problem that must be overcome. Both area's are high priced and even getting Fannie-Freddie stable again to provide the necessary capital to support the basic housing industry is not the sole answer when you start talking $750,000 plus loans. Affordability and capital are the keys right now. In some sense, perception is reality. Remember the old adage "Power Perceived is Power Achieved"? The herd instinct sometimes rules. All of the above problems will be resolved but it may take 18 + months and in the meantime there will be some tremendous values to be obtained if one has the means.

07/17/2008 09:24 AM

by Keith Webb GRI (Guardant Investments, Inc.)

Keith,

Thank you. My point exactly; financing is the key right now! And those that can should before the inevitable happens; rates go up and take them out of the 'affordable" market!

07/17/2008 09:45 AM

by Jim Flanagan

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