Brief market update

Our market is shifting, not bursting, not hissing, but shifting slightly. Many properties seem to be staying on the market for a couple, if not several, days instead of hours. For a good doomsday analysis, read this RealEstateJournal article. How to prepare for a downturn (hint: buy a house primarily as a place to live in and not as a stock!)

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  1. Knox August 31, 2005 at 10:30

    You hit the nail right on the head with your hint. Even though buying a home is probably the biggest monetary investment you’ll ever make, you still shouldn’t treat it solely as an investment (unless it is an investment property). You’re going to live in this home, drive to and from it every day, host gatherings and maybe even raise a family. Enjoy the home for those personal reasons and not just for the potential appreciation value. I’m not saying that you shouldn’t do some research and buy in an area with rising values. What I am saying is that you shouldn’t buy a house that doesn’t really fit your needs just because it’s in the “hot” area.

  2. Jim August 31, 2005 at 10:39

    This is exactly what I am reiterating in my monthly newsletter (that I am working on right now). Strict investment properties should be evaluated using much different criteria than a primary residence. My mother (a Realtor who as been in the business for ~20 years) used to tell her clients that if they are able to live in a home, sell in 5 years and not lose money, they have done very well. We need to reevaluate our expectations.