My New Blog

Today is a day of national history - the inauguration of the first African-American President of the United States of America.  While watching President Obama's address to the nation, it was refreshing to hear the same words in his speech as I have personally felt through this economic crisis . . . . that we must cling to hope instead of fear and become responsible and accountable citizens, doing our own part to heal a broken nation and economy and moving forward with confidence.

We all know that the housing market will be the main driving force in healing the economy.  But fear is still in the driver's seat - it seems the "fear" of paying too much is stopping buyers in their tracks.  When buyers should have been afraid of paying too much, they weren't, and now that they shouldn't be afraid of paying too much, they are!  The media constantly bombards us with negative news and uninformed advice, and buyers buy it all . . . . and that's the only thing they are buying!  

A buyers' market should be just that.  It's not fence-sitting, waiting, delaying, postponing, hesitating, wavering, faltering or pausing.  By its very name it means buyers should be doing one thing . . . BUYING.  So why aren't they?  Because buyers are trying to "time the market" and no one can do this.  The smartest buyers play in the safe zone.  They know that anyone who buys at the top of the market is just unlucky and anyone who buys at the bottom of a market is just lucky.

People who do buy in a buyers' market are the smart ones.  They aren't looking for a killing because they know that is a matter of luck, not planning.  They are looking for a sound decision with a predictable result and an answer to the question, "Has the market dropped enough now to make a sensible purchase?"  Once they ask this question, they are in the "safe zone" and the answer is YES. 

There are two types of buyers - those who believe they can time the market and those who are always in the market and believe timing will find them.  History supports the latter - it says that if you're always actively paying attention, although you may never sell at the peak or buy at the bottom, you can buy right and always do well over time.  That time is now!