Cindy's Blog

So sorry for the lapse in time between postings-- I am only now crawling out of the haze that the flu has thrown over everyone in our house. Would that the market would come out of its haze as well!

Things do seem to be picking up. I know I've said that before, but it is absolutely true, and the media continues to only give the bad news. Yes, the mortgage industry is in the hole right now, and there are all sorts of ideas of things to do to "fix" things, but in the meantime, the rates are at near record breaking lows, and it is a great time to buy.

As for sales, it is true that things are taking longer to sell, and that the prices are not appreciating at the rate they once were (and arguably, there are areas where prices have dropped) but for the most part, real estate, for the majority of people and the majority of purchases, is something like the stockmarket. It doesn't except in an exceptional market, appreciate so quickly that you can watch it.

The typical length of time spent in a home is 3-7 years. In an average market, that home will appreciate during that time, degrees of which will be determined by the area, the home, etc. Just as anyone will say about the stock market, you shouldn't watch it every day, because the fluctuations will make you crazy. Since we've been in a market for a few years that allowed us to watch it every day, and gave us the expectation that we could make 50k on a home to which we've done nothing in six months, it's tough to come back down to earth and realize that that was the weird market, not this one...

I recently was talking with a real estate investor who explained that he had actually lost money on every home he had ever purchased- because they had all risen in value after he had sold them. Interesting take on things, isn't it?

How does that affect me, though, you may be asking... If you're planning to buy all cash, you may still feel like waiting it out, if you don't need to move for some reason- family, job, schools, etc. If you're planning to get a mortgage, you are still in terrific shape to get a great deal- not only on the house, but the financing as well.