What happens if someone yells “Fire!” in a crowded movie theatre? It causes panic and people try to barge their way to the nearest exits. Even if that means they crush and trample others on the way out. Others might stay and assist others out safely. But even then, the panic is so high that things get out of control and a larger percentage of people can get hurt than that should have if there was no panic to begin with. What if it was just a small, manageable fire? People would still get hurt in the panic. Some may even be too fearful to return to their seats and then might even miss the best movie they have ever seen! Panic causes people to do irrational things.
I have been hearing bad news in the real estate market for years now. And for the most part, for good reason. The real estate industry has taken a beating unlike most of us have ever seen. Lately, however, the news is better than is reported. Sales are up, investors are making incredible buys, sellers are finding creative ways to weather the storm, borrowers are getting excellent rates an great loan deals, etc. That however, makes for boring news. Isn’t it more fun to hear of the blood and guts? The stories of success always fall by the wayside. It is sad, but we all know it’s true.
Now, back to the fire in the movie theatre; The talking heads in the news media have screamed “Fire!” and we have all ran for the isles! We panicked! We foreclosed on our homes, we negotiated short sales, we walked away from our white picket fences. But, most importantly, many of us have shied away from the housing market as a whole. Sure, the housing market got bad there for a while. And because of that, I believe too many people have gotten too fearful to return to market. I look at it as the unfortunate few that never got up the courage to return to their seats in the movie theatre and missed an incredible show! Personally, I want to see the ending, I want to experience the drama, I want to have the wonderful experiences that this housing market still has to offer.
I have been tracking home sales for many years now, take it from me, although it is not the best market in history, it is surely not as bad as you have been hearing. And I can assure you, it is not appropriate to be yelling “Fire!”
By the way, Here’s some proof