My New Blog

Emotions are running high in todays market as both buyers and sellers remain nervous over whether their house will retain (or regain) its value.  Sellers who can afford to do so are waiting on the sidelines, and buyers are waiting for prices to continue to drop and bottom out.  Both sides need each other to further their goals, but fear is the strong emotion that is immobilizing any action.

Frustration also runs deep for both sides.  Buyers are convinced that prices will drop further, but overconfidence in the ability to time the market can be a mistake.  When is the right time to buy?  No one has that answer, but a history of real estate will show that the highest incidence of remorse has been when prices have been historically low.  Have you ever heard the phrase, "If only I would have bought when . . . . .?"  Sellers are increasingly more upset over the decline in their home values than in the falling stock market.  The home is an extension of the self, so a perceived loss of value there has a greater attachment and emotional impact.  While stock market losses are still painful, they are less personal.

In reality, sellers who have lived in a home or owned a home for several years prior to the real estate "boom" and who have equity in the home, should still turn a profit, even in this slower market.   Looking back at prices that "could have been" does not help, as we can only move forward and pricing in todays market is crucial.   Buyers have a large selection of quality properties to choose from, the lowest prices in almost a decade, and low mortgage rates and excellent programs for those with solid credit.  In waiting too long, one could miss the opportunity.

On this roller coaster of emotions, the negative ones like worry, anxiety and depression are rooted in fear and will not lead to positive outcomes.  So instead of being pulled into the bottomless pit of gloom and doom, we can train ourselves to concentrate on hope, optimism and expectations of good things.  Even in the worst of times, there are people who make money, still move and homes that sell.   To calm these unstable emotions in unstable economic times, we can begin by being appreciative of what we have, accept our circumstances, and focus on positive results.  If nothing else, we will all feel better!