Monday, February 4, 2008

The "REAL" News

As President of the National Association of Realtors, Richard F. Gaylord, gave his following advice regarding the real estate market in his article "We're in this 'All Together". (The following is article is gleaned from information given in that article)

Its important to first realize that this business is cyclical, but for those who have forgotten or dont realize that fact here is his advice:
Real estate is a long-term investment. The recent boom created the misconception that real estate is a high yield, short term investment when in reality it is not.
There's no such thing as a bad market. Regardless of what the market is reflecting, there are always pleny of peole ready to buy and sell. With favorable interest rates and more options buyers can get a good deal.
Economic indicators remain good. Low interest rates, employment gains, infation is under control, and gross domestic product growing are all indicators for healthy sales this year.
Bad new should be put in perspective. The news tends to focus on foreclosure spikes and not analyzed in context. The problem is predominantly with sub-prime loans, which are held by less than 10% of people. Most of these loans will never go into foreclosure.
Real estate is a local business. Each area is affected differentlygor a free price analysis visit REALTOR.org. The reports will help you understand whats really going on in your marketplace.

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