Bad Real Estate News? Good, Bring It On

We all realize the media blitz is going nuclear on bad real estate news.  Good.

The worse the news, the better for us. 

That’s because anything negative scares the amateurs away. Those are the folks who take shows like [tag-tec]Property Ladder[/tag-tec], Flip This House and Flip That House seriously.  But the effect can sometimes  grow to professionals.  Hey, if you listen to that news junk long enough, you may begin to believe it. 

So where does that leave us? 

In a very good position.  And I hope the news gets worse and worse. 

Before you have me committed consider my reasoning, and the reasoning of a lot of seasoned investors. 

We go by the numbers.  We crunch, we don’t squelch.  We are not ruled by our emotions or touchy feely telepathy.   If the numbers are right we make our moves.  And the numbers are more than right in a growing number of markets these days. 

Here’s the game plan for now.  Buy and hold.  Get in on the lower prices.  Just in case the prices aren’t low enough for you, make lower offers. 

The longer inventories sit, the better the deal.  Every shopper knows that.  Why should real estate be any different?  Have you noticed more of those new  McMansions sitting empty lately?  Is that telling us something?

That breathtaking brisk pace couldn’t have lasted forever.  It had to come to an end sometime.  Now we’re moving into new markets.  People need to get that.  A lot of them don’t.

Too many people think in the past (several months ago) and they’re dominated by fear. 

Here’s what is really happening.  Mortgage payments are going up.  Homeowners who can’t afford those payments are selling.  That drives prices down.  Larger inventories make lots of eye candy in MLS searches. 

It all goes back to the logic we live and invest by.  Look at history and the cycles of the past.  They’ll be repeated.  Look at what the crowd is doing, and do the opposite. 

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Technorati Tags: news, prices, McMansions, fear

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