Housing Bubble..Myths & other Misleading Thoughts
October 14, 2006 by Terri MurphyUnless you are disconnected from the media, there is relentless babble about the housing "bubble" and how the sky is falling and, well, aren't we in a housing mess?'
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What is interesting, however, is there are solid, positive facts that still prevail even though our market is said to be soggy and in reality, might really just be "taking a short break". But for those that have been in the business for the past 10+ years, this slow down takes pause for concern."? But then again, it's all in the way you look at it".
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If you've been cruising down the highway at a brisk 100 miles per hour, and slow down to about 80, it may feel like you are crawling along, but in reality, 80 is still above the limit and cruising."? However compared to the faster speed, the contrast seems significant.
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The housing market is a bit like this analogy. In the recent past, the market has been robust, with strong factors driving the activity and NYSE traded builders soaring to all time highs."? While they have pulled back a bit now, not that much has changed when you study the facts, according to a recent article written by new home specialist and author, Bob Schultz .
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In his article, "Bursting the Housing Bubble Myth", he paints quite a different picture."?
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Schultz points out there are several primary factors that have been driving the hot market, including the obvious points like low interest rates, the proliferation of baby boomers with money, which of course, drove up the demand for housing.
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When you add in the stock market investors that switched their focus to real estate, the amazing number of immigrants migrating to this country and a proliferation of international investors buying real property here, one could get the impression real estate was hot and the way to go to make big money quick and easy.
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Interestingly, of late, not much has changed, except for the fact that we've got a bit more supply than demand, which often happens when new construction catches up to delivery dates, and the investors who were in for the short hold flood the market with liquidation."?
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But there is a real benefit in the slower market if you are a serious professional."? It's time to get proactive and not re-active in this fortuitous window of opportunity.
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The facts remain:
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Interest rates are still low and holding;
Baby boomers are still buying and selling;
Immigration will continue to grow"? (According to NAR statistics, by 2010 over 80% of buyers will be immigrants hungry for home ownership!);
Our robust economy will not enable the housing market to crash ' it will only accommodate the modest downturn we have already felt in the humble opinion of this writer;
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Schultz comments in his article that as investor inventory is absorbed the supply and demand will even out and a more level market will emerge
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While there are areas around the country that are softer than others, smart agents will help sellers to offer their properties based on more recent market comparisons and to counsel them to be realistic in their perception of the market place."? Savvy agents understand the pricing of a property is not stationary event, and will consistently "read and study" their local market on a continuous basis to counsel their sellers as they monitor their market position."? In actuality market values are not set by Realtors"? or home owners, but by the buyers who actually pay for the property!"? They simply set the property values when their offers to purchase are accepted and closed.
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The media will continue to "sensationalize" the peaks and valleys of real estate, creating as false impression about the real deal. As professionals, it is incumbent upon us to help guide our customers and clients through the maze of the market with our expertise."? We essentially provide them with counsel in marketing strategies, the providing of accurate market information, improved presentation and negotiating skills, and the use of extraordinary communication skills sets.
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When the market gets tough, the tough get better. Are you ready to ramp up your skills and not only survive but thrive in today's market?"? It's all in how you look at it"
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For more information about solutions for a cooling market visit: www.NewHomeSpecialist.com














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