Real Estate Storms are created when a center of the housing market develops, with a system of bad loans surrounding it. This combination of opposing forces can create turmoil and result in the formation of housing storm , such as short sales, and foreclosures.
The phrase perfect storm originates from the 1997 book which refers to the simultaneous occurrence of weather events such as Ice storms, Blizzards, Ice storm, hurricane, tornado, hailstorm which, taken individually, would be far less powerful than the storm resulting of their chance combination. Such occurrences are rare by their very nature, so that even a slight change in any one event contributing to the perfect storm would lessen its overall impact.
Are we heading into The perfect storm?
A perfect storm where the fuel prices continues to dip lower, a decrease in foreclosures, the rise in consumer confidence and spending, the stability in real estate prices, low mortgage rates, and feds cut interest rates. This might be the perfect real estate storm. People can relax and believe in the great things this country has to offer including home ownership.
Elections are under way in two weeks. We don't know who will win but the important thing is that America is ready for changes. We will all be partying for the first 6 months after the elections and comes the Spring Market where it will be perfect. Are we going to have the perfect real estate storm?
Our investments are protected.
Lets sell and buy homes!
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