Real Estate Markets are cyclical – Where are we in this cycle?

Posted in General Real Estate , Golf Real Estate , Myrtle Beach Real Estate

 
With all the uncertainty in the Financial Markets what do you do with your money?  Home Ownership is an investment in Your Future.  You must remember that Real Estate is Cyclical! What does that me to you as the Buyer?  In short all Real Estate Markets are different and there are great deals and opportunities for a Buyer if you are willing to look!  Despite all the negative Media reports and some short term loss of value, home values long-term have and will continue to rise.

Now where are we in this current real estate cycle? Using a very popular financial model of how investment work I would say we are past the points of anxiety, denial, fear, depression, and somewhere between panic and capitulation.  Capitulation is financial term defined as the sale of one investment at a loss for the specific purpose of moving funds from the sale into a less risky investment.  

Ok now what – well now that we have realized what is going on in the market how do we capitalize on this knowledge.  Understanding after the point of capitulation we will be close to entering the “point of maximum financial opportunity” it is now time to research your investments.  What is a less risky investment the stocks? REAL ESTATE – Real Estate can’t go bankrupt, real estate can’t pay out a golden parachute to a VP, and real estate is yours and yours alone.  However, like any investment you can’t buy just any real estate. Real Estate is local, just because your market at home is struggling and good deals are difficult to find that does not mean they are not out there.

The Coastal regions of South Carolina have proven to be the major destination of those getting ready to retire or those wanting to get out of the hustle and bustle of the busy city life.  Lower taxes, better schools, better lifestyle, better weather, are all reasons I hear time and time again why people are moving to the area.

The key to feeling secure in a market like this is to know that it is cyclical in nature and to understand the normal feelings which accompany a down market. Don’t panic and run for safety. Sit back, relax, and know that the real estate you are buying today is being purchased at a great price. Few people time the very top or the very bottom – Understand we are close to the bottom – Understand now is the time to buy Real Estate.