As Realtors we need to bring to our investor client's attention the old adage that "History Repeats its self". For those who remember back to the 90 - 91 era when housing prices plunged over night to record levels equal in the dollar value then to what has happened now, it took roughly five years from drop to back even to pre-drop values. This history seems to support what was reported today in the financial news by Michael Psaros, managing partner at KPS Capital at a restructuring conference in New York. he indicated that the current recession is seen as lasting another 3 years beyond the two years we have already been into it. He also indicated that he and his investors are "very excited about the opportunities for investing this year and next. He is quoted as saying that "we are going to invest an awful lot of money this year". If we look back to that last severe housing slump, 1990, 1991, you could not buy today even with the depressed pricing that is out there, for anywhere near what was the pre drop pricing in 1990. So yes we do have some severe declines but we also come out to yet higher highs than before. Another line this writer likes to quote is "The poor person sees nothing but fear while the successful person sees opportunities in the challenges. And if your wondering, yes I have everything I've been able to scrape together invested into real estate not the stock or bond market.
As always have a terrific and productive day!!
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