It seems that every day we hear someone on television talking about what a disaster the real estate market is now. During 2003, 2004, 2005, and most of 2007, the market in Maryland was booming ... partly because of the liberal practices of lenders. We saw home prices shoot up at ridiculous rates and home sellers were getting multiple offers for their homes.
Now the buyers have disappeared for the most part because the news media and Wall Street have scared them to death by talking about the "problems" in the real estate market and how investing in real estate is no longer a good idea. It's obvious that many people who bought homes during the boom shouldn't have and they're now suffering. Fortunately, the lenders who put them into that position are now going belly-up. The fact is that the market that we are in now in Maryland is NORMAL ... properties are still selling, although the pace has slowed down. The rate of price appreciation has stopped, and we are seeing some price reductions. Many of the price drops are by sellers who were (1) unrealistic to begin with about the value of their home, (2) need to sell because of a transer or relocation, or (3) need to sell because of an impending foreclosure.
As long as we all keep our wits about us, we will make it through this current "correction" in the market. For those of us who can see what is REALLY going on, there is money to be made ... and the buyers that I am representing will get some incredible deals!
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