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It's an intriguing phenomenon, but we seem to gravitate to bad news. So there is no need to wonder why the media news coverage is the way it is; they are simply giving us what we want! So, with the psychology lesson done, here is my point: It's always a good time to buy real estate, but now is a great time to buy real estate! Why? Because the world is the same size today as it was when God first created it!
My father always told us," there is a finite amount of land and real property will always be valuable ." It's his limited book education and life experience definition of Supply and Demand. In 1997, I bought a property for $135,000 in the area I serve. The property steadily increased in value, and in 2005 appraised for $680,000. It will sell today for around $525,000. Yes, prices are down, but not down to $135,000. Even in this serious market downtrun, it is still worth almost four times what I paid for it. In contrast, let's look at stock values for some familiar companies in November 1997 and today. GM stock closed for around $60.00 per share then and is at about $2.60 today. GE $69.56 then, $16.06 today. B of A $60.25 then, $15.19 today. These are just three examples, but very key to our economy, and the shifts in stock value are staggering. Many companies will recover, others will stop to exist, but the fact remains...real property values are far less volatile.
If you are financially prepared, do your homework, connect with a REALTOR, and get pre-approved with a reputable lender. If you are renting, this is a true life No Brainer! With relatively low interest rates, a steady supply of inventory, more realistic sellers, and down to Earth property values, Now is a Great Time to buy!
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