Your Home - The Place you LIve
March 15, 2007
The Riverside Press Enterprise has a headline today in big, black, bold print "Housing shakeout jolts area". If you take the time to read the article, the data does not warrant such a dramatic headline. Of course, any journalist will tell you that headlines are supposed to capture the reader's attention and entice them to buy the newspaper and read the news. Tsunamis, Tornados, Hurricanes, and Earthquakes are natural disasters and news of them does capture the public's attention.
A slow down in the housing market historically has been a natural phenomenom. To categorize it as a "disaster" proably depends on how it affects the economy and certain individuals. Real estate is cyclical and there are up, fast paced markets and flat, slower and some times down markets. We call them sellers' markets, buyers' markets and "normal" markets. So far the actual data shows 2006-2007 to be trending to a "normal" market.
A few days ago, I showed the Febraury 2007 statistics compared with the 2006 statistics. While the number of sales have trended down in most markets, the prices are still up in some, flat in others and down in still others.
My real question is "Are you purchasing an investment or a place to live, enjoy your hobbies, and entertain your family and friends?" I am a collector of original art and I have never bought a work of art as an investment. I buy it, because it pleasures me in some way. Isn't that what a home buyer really is looking for in a home purchase?
If a buyer's goal is a place to live, then any market is a good time to buy if the desireable property is found. Call a lender (Financial 2000 - 909-748-7110) and find out what payments can work for you. Interest rates are still at historical lows and the supply of homes is plentiful.
The long term advantages of homeownership outweighth the short term characteristics of a cyclical market.
The Riverside Press Enterprise has a headline today in big, black, bold print "Housing shakeout jolts area". If you take the time to read the article, the data does not warrant such a dramatic headline. Of course, any journalist will tell you that headlines are supposed to capture the reader's attention and entice them to buy the newspaper and read the news. Tsunamis, Tornados, Hurricanes, and Earthquakes are natural disasters and news of them does capture the public's attention.
A slow down in the housing market historically has been a natural phenomenom. To categorize it as a "disaster" proably depends on how it affects the economy and certain individuals. Real estate is cyclical and there are up, fast paced markets and flat, slower and some times down markets. We call them sellers' markets, buyers' markets and "normal" markets. So far the actual data shows 2006-2007 to be trending to a "normal" market.
A few days ago, I showed the Febraury 2007 statistics compared with the 2006 statistics. While the number of sales have trended down in most markets, the prices are still up in some, flat in others and down in still others.
My real question is "Are you purchasing an investment or a place to live, enjoy your hobbies, and entertain your family and friends?" I am a collector of original art and I have never bought a work of art as an investment. I buy it, because it pleasures me in some way. Isn't that what a home buyer really is looking for in a home purchase?
If a buyer's goal is a place to live, then any market is a good time to buy if the desireable property is found. Call a lender (Financial 2000 - 909-748-7110) and find out what payments can work for you. Interest rates are still at historical lows and the supply of homes is plentiful.
The long term advantages of homeownership outweighth the short term characteristics of a cyclical market.
posted by shirley harry at 10:13 AM
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