Did someone talk to Chicken Little? I keep hear the sky is falling. After reading another article claiming that the real estate market is frozen even as real estate continues to sell all across the country. Of course, they were referring to the Fannie Mae Home Purchase Sentiment Index which apparently fell for the sixth straight month. Don’t get us wrong, we would like to see more confidence in the hearts and minds of consumers generally, but frozen isn’t terribly accurate in our opinion.
Sure, there are reasons that home sales are slowing in different areas of the country, not the least of which includes rising interest rates and growing pessimism for inflationary results on goods and services. However, while buying may have slowed and we are not looking through purely rosy glasses, the real estate market remains robust generally. If you can remember, not so long ago people were buying at 9% interest rates. back in the early 80’s some of us remember 18% interest rates. Is that good, well, no, but the point is that people still buy houses. Yes, cost versus income is terribly worse now, but we would suggest we are going through a much needed market correction. The market moves in cycles.
As we have been in the real estate industry for decades, we can tell you that what we need is more education on market cycles and how to respond to them, not panic. Very few people embrace change, yet change is one of the two constants in life. We have to learn to change and adapt if we want to survive in every aspect of life. The real estate market is no different. There are some good classes available for little money from industry experts. Maybe consider getting a mentor in real estate.
We share concern that the market is changing but more about how people and government react to change, Capitalistic market forces always are able to pick up where change starts. There is opportunity in change if you understand how and where to look. Maybe we should consider a pro-active approach to change instead of panic? Your thoughts?
We can not and do NOT provide accounting ,tax, financial, legal, nor investment advice,