What's the deal with real estate?

It seems like everywhere you go someone's talking about the big sub-prime mortgage mess, the real estate market bust and how it's all going to drive the country into recession. The truth is that we're only hearing the gloom n doom side of the story.

It's true that in many parts of the country there was an absolute real estate feeding frenzy, mostly by investors, that drove prices through the stratosphere. It's also true that in those areas many people who had been planning to buy their first home probably felt like it was one of those "now or never" type things - that if they didn't go ahead and buy something prices would get so outrageous they would never be able to buy anything. Then there were the people who wanted a piece of the pie and decided to go out and get mortgage broker and real estate agent licenses to capitalize on the whole thing.

All of this, combined with a healthy dose of greed, created the bubble that has now burst.

But did this happen everywhere? No. Did everyone who purchased a home within the past few years get a sub-prime, adjustable rate mortgage? No. Are all mortgage brokers and real estate agents really inexperienced salespeople just out to make a quick buck? No.

The fact is that in many parts of the country, the real estate market is humming right along, neither in a frenzied pace or a laboriously slow pace. It's pretty much normal. Believe it or not, in many parts of the country today people who purchased their homes within the past year or so are happily raking leaves, baking cookies, taking the kids to their soccer games and making their mortgage payments, not worrying about all the hype about how other peoples' houses are loosing value daily.

Fact is, most real estate professionals are just that - professionals. They are dedicated to providing the best possible service to their clients and plan to stay in their chosen profession for many, many years. Most of them continually take classes in order to stay current on their local issues, law changes and counseling skills. Many of them consider themselves to be more "friend," "advisor," "teacher," and "counselor" than "salesmen." These professionals realize that real estate is really about developing relationships with people - not just selling property.

But that's boring stuff, that's just typical life stuff, no one really wants news about that. So, in order to satisfy the public at large all we hear about is how the "sky is falling."

Now many people in areas that are doing fine are afraid to buy a house or try to sell a house. Many of these people are now afraid that the country will slip into recession and they will loose their jobs, so how can they even think about buying a house?

Aren't we creating that "self-fulfilling prophesy" thing? Isn't this becoming one of those "you are what you think you are" times? Shouldn't someone start being a little more positive?

Any time we make broad generalizations about anything, whether it is targeted at races or religions or financial markets or housing, it is a dangerous thing to do. No one "always" or "never" does anything. Markets, like housing, are cyclical in nature and they will always change. There will always be a seller who is desperate to sell and a buyer who wants to buy - whatever the overall market is like.

Bottom line, if you want to buy a house, and you find the house of your dreams, don't worry about the market, worry about you and what you can afford. If you can afford it, and you want to buy it, go ahead.



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