For years, investors have been buying houses to
make money and build wealth. Today however, the
media would have you believe that the real estate
bubble has burst and that you can no longer make
money buying and selling houses.
Newspapers and television reports love
attention-grabbing headlines. But, are
headlines based on facts or designed to get you to
tune in?
Media Headlines: Fact or Fiction? Let's take a
look at the difference.
Housing Prices Fall or Housing Prices Dip
In 2006, median home price across the country
dropped only 1.7 percent. That figure certainly
doesn't indicate a bust in the real estate market.
The way property values increased over the past
decade, that decline is more of a bump in the road
than a major disaster. Because most investors buy
low and sell high, a 1.7 percent drop in prices
wouldn't mean that investors can't make money
buying houses.
Housing Market Crashes or America Still Needs
Housing
According to media reports, the turn to a buyer's
market indicates that too many houses languish on
the market. However, the number of new households
being formed and an increasing population keeps
pressure on the real estate market. America's
expanding colleges and universities continue to
turn out qualified graduates who need housing.
Mortgage Interest Rates Escalate or Interest
Rates a Bargain
Even though headlines say interest rates are going
up, long-term mortgage rates are only about a
percentage point above historic lows. Many
investors remember paying 12 percent or more
interest and believe today's rates to be a real
bargain.
Unemployment Increases or Employment Rate
Stable
Some news stories highlighted areas where people
were losing their jobs. However, national
unemployment rates are lower than any time in the
past five years. The country's unemployment rate
indicates that Americans are better positioned to
make their house payments and will continue to
qualify for new mortgages.
Economy Destroyed or Consumer Shopping Trends
Headlines shouting that the American economy is
destroying itself are countered by consumer
economic votes. Every dollar spent counts.
Consumers cast their votes and spent an
unprecedented amount of money on Halloween
decorations, candy, and costumes. Consumers
without disposable income wouldn't buy candy
instead of healthy food for their children. Home
improvement spending is also at an all time high.
Consumer shopping bolsters America's economy.
What do these headlines mean to real estate
investors who buy houses to make money? Educated
investors can still make money buying real estate.
Learn how to make money buying houses. Free
ebooks on real estate investing and
Flipping Houses.
Jeanette Fisher teaches beginning investors how
to make money buying and selling houses at Joy to
the Home Realty's
Lake
Elsinore Real Estate office and design center.
###
Copyright © 2006 Jeanette J. Fisher
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