Last week there were several discussions about the market and it`s doldrums. One issue in particular was the fact that one of the financial analysts was proclaiming to folks in the Media that "The Sky is falling".
The same analysts were telling people 10 years ago to buy Yahoo at $400.00. They would pound on the table and scream "BUY Yahoo it would only go higher and higher!" I`m not making this up!
Once upon a time, people were satisfied with a small tidy profit.They weren't buying homes with high expectations as it is today! Now every homeowner and investor expects unusually high returns. Many,thought they could buy and sell within a day! Gains were astounding. Worse, in some cases it was true! I know, I lived it.
Back to our current market.The sub prime market and it`s total demise was due to companies or Hedge Funds on Wall Street who knew exactly what they were doing. They were encouraging these loans to be made essentially to people who for whatever reason qualified on a marginal sense of the word.
Suddenly, home buyers who qualified for loans at $250K were given the green light to obtain loans from lenders valued at $350K. Better, the loans were set at 100% financing and there began the root of all evil.
Many of these so called pundits of the street who handled these hedge funds are gone, but, they were able to amass "millions of dollars" in bonus before their departure!
Not too bad for a few years worth of turmoil and destruction. After all leave the clean up to others,which is exactly what`s transpired! The absorption rate will take years to fix, but like everything else, things have a way of taking care of themselves.
I`m not defending anyone, except the simple truth. People will always need to Buy, and others will always need to Sell. The rest is based on price and location. Will a person selling their beautiful home in the future be able to make "staggering Profits" as they once did?! The answer is no. Does this mean that the market is over? Stop listening to Stock Jocks who should stick to the buying and selling of what they know,which is stocks, not Real Estate.
scott daniels
florida list for less realty,inc.
954-275-0200.
http://www.floridalistforlessrealty.com