December 21, 2007 - tonight is the longest night of the year.
Lack of light influences our emotions more than most people realize. I have a friend who bought a light table - a device that photographers used in years gone by to look at slides - photos on film that were projected onto larger screens. In days gone by, the best way to choose the best shots was to review the slides on a light table with a magnifying glass. Arther uses the light table to give his body some needed light in the dark winter days. It works for him and many others with Seasonal Adjustment Syndrome.
The Real Estate Market in the US is in the long dark winter of its cycle and may not see sustained light for 18 more months - 24 more months. What does this mean for buyers and sellers?
Savvy investors are watching to see a break in the credit squeeze (jumbo loans are scarce and expensive now), and once they see the loosening of jumbo loans, they will move into the softened market to buy properties they can add value to and sell in two years, or hold for longer term investment. Investors want to buy with "OPM" (other peoples' money - the banks) and leverage is their best friend. I am looking for good multiple units - rents are strong and tenants are plenty. I think we will see easier jumbo loans and better quality inventory of properties, maybe with needed price reductions come Spring. I am the eternal optimist.
Meanwhile, agents and brokers would do themselves a service to be questioning their value proposition for the coming three to five years as consumers show us what they want and expect from us. Time to re invent our business models.
Have a creative holiday, full of self inquiry and plenty of acknowledgement. Best to you all.
Liz
Friday, December 21, 2007
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