"All Real Estate is local"---is a phrase that we all have heard for some time now. This is the real truth about real estate and yet we are still bombarded with reports about the devastation that is still in the pipeline, especially where subprime mortgages are concerned, on a national level.
New homes or housing starts are in pretty bad shape nationally yet on my block in Southampton Village, in New York there are three new builds and one completete renovation going on as we speak.
Here on Activerain I read all the time about how business is active again in a lot of areas....some even say the phone will not stop ringing right now---just a FEW DAYS BEFORE CHRISTMAS!!!! Last week I offered up an article on the projections made by NAR for 2008---this was the ONLY report that was positive in it's projections for the near future in Real Estate!!!
I personally think that something to do with "buying short" by the big giants in the financial world may have something to do with this---and i just heard that the reason most BIG conglomerates like Morgan Stanley, Merrill Lynch et al were hit so hard is because they were in over their heads buying the mortgage backed secuities that were rewarding them with such high yeilds (I hear 10-12%). Most of these were based on the subprime mortgages that the poor "Little Person" was sold. TALK ABOUT THE GREED FACTOR!!
How do we ignore the national news reports that are so bad?? How do we convince our customers that this is THE time to buy a house when all they hear is that prices are going even lower????
It will be very interesting to see how those financial institutions that are buying short on real estate right now will come out at the end of the fiscal year for 2007.....stay tuned