With the ever increasing trauma in the financial world, there are more and more individuals who are beginning to panic. They are pulling their money our of the market with standing orders to sell all of their stocks. At least this is what national headline news is saying.
It is true that there is more concern and panic in our economy than we have had in a long while. Another announcement is that GM may be filing for bankruptcy. Just heard it 5 minutes ago.
I have always been a very staunch supporter of the free economic system. Supply and demand economics will always work themselves out and will insure a balance of price, quantity and quality. Well, that was the plan. Seems that over the past several decades, we have tried to manually adjust some of the key areas of this supply and demand equation.
Now, I am not an economist and am not trying to stir emotions to the point of boiling. I am only reporting what I am hearing so that I may better understand just what is happening.
With all of the scare in the stock market, doesn't it make perfect sense for anyone you talk to to once again look toward real estate as a safe, long term way to save money. Granted, the real estate value has eroded along with stock prices. Or have they?
When companies like GM announce they may file for bankruptcy, what does that do to the piece of paper that has your name on it and reads, One Thousand Shares of General Motors Corporation. Par Value, $25.00? If you said that it is worth the paper it was written on, you are right.
Now, take that home that was purchased in any town USA. Your property is tangible. It is real and yes, the value has been on the decline. But, it still has a value. If you are not forced to sell due to other financial hardships, that real estate will have value today and in the future. It is a safe investment. We got ourselves into a real jam with the greed and availability of home ownership, just as with other avenues of investment. But with real estate, there will always be a value. Something.
I know that for a long time, we allowed ourselves to be lulled into thinking that real estate will always be worth more tomorrow than today. We now see that this may not always be the case. We call this decline in values a Market Correction. Just as in stock market terms.
Market correction can be a good thing. I know that it is hurting many people who have become overextended due a variety of reasons. Always remember however, that we all need a place to live. Our home will always have value.
This market has allowed many of us to once again re-connect with our clients, peers and circle of friends and family. Not as a social gathering alone, but as a time to help, counsel and offer suggestions for a solid plan to get past this time of trial.
If you take the time to help those around you in the area of expertise that you all possess, you will yield rewards that are not measured in currency alone.
A piece of mind that we did our share to help get through this time of trepidation.