We have sure heard a lot lately about the much heralded "end of the market slump". What do I think about that? Unfortunately, I believe it is still a long way off. I sure hope I am wrong, but too many major factors are at play, regionally, nationally, and internationally. We have sure had a good ride the last few years with real estate values soaring and everyone and his cousin and his cousin’s dog being a real estate investor/developer of some sort; banks loaned out the money like candy, especially in the US; 100% financing became common. Of the many definitions of speculation I have heard, one became rather timely over the past few years. It went something to the effect of speculation being when you bought a product, added nothing to it, and then sold it for a higher price...something for nothing. Sound familiar? The party started about 13 years ago and finally heated up in the last couple to a crazy rate. I don’t know if the worst is over yet, but I sure hope so. I do believe though, that there are some more ups and downs to go through before it is all over.
Should you buy real estate right now? I think so. Why? Because real estate is a long term investment, NOT a short term speculation vehicle like some folks made it out to be recently; and as a long term investment vehicle, few things can beat it. Prices are not bad right now. As always, do your homework, work with a team of professionals, and don’t go anywhere near 100% financing.