We have come a long way....We experienced the 1999 computer upheavel as we dove into 2000. We experienced some amazing events after the dot com crashed. Lots of money and a pent up demand for Real Estate drove our communities in a frenzy of home sales as if we had a "Blue Lite" special blinking in our faces. Families dream of home ownership became a reality and the world was a happy place. Long time home owners property values bagan soaring through the roof! EQUITY....... They screamed! Buy more houses. Sell those 100% financing loans. We want EQUITY....
2005 brought a year of abundance and yet uncertainty. Our Real Estate market grew so fast, we began feelie ng growth pains. In our area in Northern California, our home values grew 22% in one year! Boy, we will all be retiiring early at this rate. Or so we thought. 2006 started off sluggish and many agents that left the dot com industry and became Real Estate agents found themselves challenged by the market, and were at the end of family and friends to help support their business. The Department of Real Estate saw a real drop in agents during 2006 and 2007. Sadly, not only did many agents lose their jobs, but families started losing their homes. The 100% financed first time homes became a heart-ache in the family network system and started a surge in the drop in our Real Estate prices. Where did our 2005 EQUITY go? In the garbage!
Now a brave new world of the REO or Bank Owned property. An opportunity to purchase a second home, or investment. 100% financing? NO WAY! It's Full Doc all the way, with at least 5% down with good credit scores. This is the way it should have been all along. Maybe so many families fighting to acheive the ultimate goal of home ownership would have been saved the humility of losing your home.
So, now here we are. Long gone are the days of 2005 prices. No more quick equity in our homes. Actually, when we take a look at the prices in 2003 and compare them to the Real Estate market today, they actually mirror each other. Amazing. We just went back in time, (however I still have my new wrinkles) and barely knew it, accept for the pain we are feeling in our falling home prices. No worries. In a solid market, whether it be real esate or stocks, solid postive growth should occur over a 10 year period. Slow, methodical and gradual. Strong stable growth.
Let's embrace what is happening today. What a great time for investors to help the growth of our economy and boost the moral of the nation. Although sad at how we arrived here, I am happy to be an REO Agent to help our economy recover and gain faith once again in the market!