You can go for a score or just punt! Well, I have to admit that in the last blog, I got a little overwhelmed or seemingly frustrated by the direction that our national socio economic reality was heading. But alas, now I am firmly and fitly optimistic and I am still hoping for some responsible decision making.
As far as our real estate market is concerned, I am surprised by how many "experts" there are in understanding this market. If these experts were that smart they would have warned us months and months ahead of time about what the situation really was. I believe we can pump money into different areas of our economy, but that alone is not going to completely cure our ailments. We need to also take some responsible steps on a national level to manage effectively some of the relevant aspects.
The answer is more than just "wall street is greedy"! You have to look at the complete ineptness and failure of our national leadership to regulate the aspects of the investment world of which it was put in charge. Fannie Mae and Freddie Mac were allowed to puff up their profit pictures outrageously. Chris Dodd and Barney Frank completely failed to do anything about the serious problems that these institutions had and they knew about them in 2004. They certainly did not want to panic any of us because they refused to alert the public and just let the abuses continue until it involved enough of the economy to facilitate a disaster. Also, the banking industry was allowed to speculate in paper instead of sticking to the more tradtional aspects of conservative banking( repealing the Glass-Speigel act around 1994). I won't even get into the bad debt and high risk agenda forced on the banks by the Community Reinvestment Act(greatly expanded under Clinton). That entity needs to fade into history. Until these issues have been addressed in a real comprehensive manner overall economic housing growth will not be robust.
But does it mean that this real estate market and the whole economy will be horrible for years? I think only idiots would say that; because nobody knows how long it will take for everything to be "peach keen" again. But for right now, for all of you that are out there that are considering the purchase of a home.....now, is an exceptionally good time. We have mentioned before that housing prices in our great area are at or below replacement value. The means the intrinsic value for housing is great for buyers. How long will the prices stay repressed? I don't know....but trying to time the market in real estate is like trying to time the Dow......sounds easy, but not that easily done,...successfully that is!
We live in a fantastic area, and Arizona is the second fastest growing state at the moment. So, if you need any information about our area, visit our website: www.greenvalleyazsearch.com or just give us a call!