It’s been a tough year. Unemployment still high, foreclosures up there where it could begin to affect home values, Washington in gridlock, and no matter how hard we try, we just cannot right now see the light at the end of the tunnel. I understand; I’m living in the same world.
I saw recently, though, a graphic that I wanted right away to send you, because I believe it’s necessary for us all to see it. We already know it, of course, because it’s common sense. But sometimes seeing it on the page is more impactful. Here it is:
What you see is the standard business cycle that every student learns in Business 101. Business happens in cycles, and this is the standard that we all live through. People are Optimistic, and continue to be until they get Excited and reach a point of Euphoria, where they’ll pay anything to play.
Then values, because they’re never sustainable, go down. We go through periods of Denial, Fear and Panic until we feel terrible about what’s happened.
Then, from a state of Despondency and Depression, we
begin to see the light. We’re Hopeful that we’re beyond it all, and reach a place of Optimism, which is where we started in the first place.
Look more closely. Note that people who buy at Euphoria are risking the most. People who buy at the bottom of the cycle are buying at the Point of Maximum Opportunity.
That would be now. Interest rates are as almost as low as they’ve ever been in this country. Home values in the country have declined, even in Boulder County.
Something else. Where have people made money over the past ten years? Take a look:
Maybe it’s time to think about buying the home of your dreams. Maybe it’s time to think about buying some real estate for investment. The light at the end of the tunnel is coming.
Call me to talk. I’m always here for you.
Enjoy the day,