Tuesday, February 5, 2008

Is Real Estate "Local?"

This is kind of a humorous article emphasizing the never-ending gloom and doom that is allegedly the real estate market. But I'm linking to it because it provides Countrywide's analysis of regions that are (or are at the greatest risk of becoming) soft markets.

The good news for Oregonians is that on a scale of 1 to 5 with 5 being the highest risk, we are a 2. The only “better” places are Alabama or Alaska, and who wants to live there?

Me neither.

The funny thing about this article and the people who commented on it is that anyone who’s been alive for longer than five minutes should know that the important thing is not that real estate markets are local (or how that line benefits real estate agents). The important thing that everyone with an ounce of sense knows is that the real estate market is cyclical. Just like the stock market, just like the economy in general. Things come up, they go down. Repeat, ad nauseum.

The person making fun of people who say there are “bargains” out there right now is just one more person who won’t be able to figure out how to create wealth for himself (or herself) during a down market. The economy isn’t about to collapse and California isn’t going to fall into the ocean and Americans will not stop buying houses. As I was discussing this morning with a good real estate agent friend of mine who has been in the business for over thirty years, the market won’t improve today and it probably won’t improve all that much this year, but it WILL come back around. It’s just what markets do.

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Anonymous said...

If history is an indicator, the odds are good that the sun will continue to rise every day for the foreseeable future and that Americans will continue to want to live in houses.

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