By now you've all heard that the Dow Jones Industrial Average hit a new high this week. The media covered this in great detail and one of the interviews I heard with a stockbroker was very interesting. They asked what effect this news had on the average investor. They wondered whether hearing that the DJIA had reached the lofty 13,000 mark would make people want to sell. The stockbroker said that, in fact, just the opposite was true for the average investor. It made them want to buy! He went on to talk about how most investors make buying and selling decisions primarily on the basis of fear and/or greed.

And so it is in the housing market! As the average buyer hides and worries, I'm seeing more inquiries daily from investors. They get the "buy low, sell high" philosophy. Investors tend to take a longer term view. One gentleman told me this week that when there was a TV show just about flipping houses it was perfectly clear that it was time to sell! How right he is!

The people who make the money, whether it's in real estate or in the stock market, tend to be the people who don't follow the herd. I've known this at an intellectual level for years. But it's been interesting to see it in action it he past few years!

One day the market will turn into a seller's market again. And all the people who listened to everyone telling them to be very afraid to buy will be scrambling to get something as prices start to climb. And all the investors who bought when they had lots of negotiating leverage will be sitting back and smiling!