There has been so much change in the lending and financial world that it is difficult to not get discouraged or confused. If, however, you have been following the national news recently regarding the bankruptcy of Lehman Brothers, the stock market getting hit and Fannie and Freddie being taken over by the government, you should know that these are all the classics signs of the bottom of a market correction (or the bottom of the market).
Right now, it is more of a banking problem rather than a real estate problem. Prices in Massachusetts have mostly stabilized and we are seeing multiple offers in the short sale and foreclosure markets. Although there are probably more banks in trouble, and there’s not yet a full complement of mortgage products to satisfy all the buyers in the market, that will get sorted out. For thousands of years lending money has been one of the most profitable businesses in the world. Banks make money by lending; not by deposits. So they will figure out ways to package loans and get cash into the hands of consumers. I believe this is the final step in the process and in the next six months we’ll start to come out on the other side of this.
Make sure you don’t get caught in the “cudda shudda wudda” of taking advantage of this market. Call me today to find out more about great deals that exist in today's market. I know that I fully intend to take advantage of something soon too. We won’t know what the bottom is until after but I believe it’s pretty close. (information in this blog was taken from a great real estate expert, Brian Buffini)
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"If, however, you have been following the national news recently regarding the bankruptcy of Lehman Brothers, the stock market getting hit and Fannie and Freddie being taken over by the government, you should know that these are all the classics signs of the bottom of a market correction (or the bottom of the market)." SINCE WHEN? Is this just a post to drum up some business because it makes no sense! When does the fact that everyday you hear about another banking, investment, or insurance giant closing their door signal the bottom of the Real Estate market?
We are as close to a 1929 depression in the Real Estate market as you can get. The statistics don't lie. This year has been one of the worst on record for Real Estate.
Inventory and market time is rising and we have only seen the start of the short sale and foreclosure market.
There will be more more coming and this will only continue to drive prices lower.
It is great to think positive and see the glass half full but lets be realistic. The Real Estate market is no where near the bottom.
BTW - When did Brian Buffini become an economist?
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