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Wednesday, October 14, 2009

The New Market

Despite what we know about the market and what could possibly happen, we have data that backs a recover that we have not seen before. is it possible that we have learned from our mistakes in the past and used this downturn to our advantage?

I believe so and heres why:

As I have said in previous posts, real estate has not come down since 1945. Buyers, instead of fearing the market they lean right into it hoping to make a killing once the market bounces. I believe this may be cause of a new kind of american investor or home buyer willing to take on risk in turn for big gains in the future.

The only problem hovering over the horizon is the dollar. The dollar is dropping and dropping fast. Real Estate is measured in dollar value. Hence if the dollar drops then purchasing power of the investor drops as well causing overall market values to disintegrate.

As I always tell my clients, no one has a crystal ball, however we can give our best guess if we do enough research and work hard at understanding how our economy works.

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