The Good:
Commodities tick down featuring Oil under One hundred dollars. Mortgage rates continue to drop. The Fed is drawing the line on "saving" or socializing our economy. Another road block from finding bottom and moving forward is being removed. Transparency is the topic and much needed reform in the wind for Wall Street. News of another one biting the dust occurs and there is no panic on Wall Street.
The Bad:
The 158 year firm called Lehman Brothers is going away and confidence (the lack of), perceptions or better yet the self fulfilling prophecy that has been going on since August last year continues. We will see other "adjustments" or fall out occur manifesting itself in many ways some very subtle.
The Potential:
Oil prices down freeing up money for the consumer and if sustained the potential to having a positive impact (although modest) down the road. It is an important building block toward the road to prosperity again.
Interest rates are dropping and perhaps the side liners will jump and purchase in what I view as a market everyone has been waiting for. Low prices, low down payments required (or zero via USDA) and low rates. Now this is my kind of perfect storm.
So while many choose to wallow on the side line others see the opportunity and those who seize this opportunity now will be better than those who wait.
Why? There will be a turning point and the best of the experts don't know when. RATES WILL BE HIGHER and we don't know how or when that pendulum will swing. Property values will go up history proves that. You can't buy a house at the prices offered 20 years ago but 20 years ago you would have been offered an interest rate of 10% or more for the 30 year fixed rate mortgage.
My advice is to look at real estate as a long term "investment". STOP watching the churn and burn television programs that say you can make a profit over night. Real estate is a long term proposition (five years or more). Today you are witnessing the pit falls to those who swung for the fences only to strike out.
If you have a secure job and need a home for your family then you should buy a home. If you are an investor with cash looking for opportunity real estate should be on your radar screen.
How do you buy a home or investment property? With an experienced Real Estate Agent.....a professional...not uncle Bob that works part time for the extra money.
How do you find the right financing? You find a mortgage professional....I REPEAT...a mortgage professional that has been in the business several years that understands this market. Experience counts and is important now more than ever.
Good luck to all and have a great 4th quarter!
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