What is the real estate market forecast look like? Where’s the next big opportunity in the real estate market? Well, we’re going through an interesting season, and during this Coronavirus, I’ve had a mantra. And my mantra lately has been, “There’s an opportunity in every crisis.” Or as a politician once said, “Don’t ever let a great crisis go to waste.”
But what does that mean for real estate? Real estate has cycles, market cycles, they call them. And every few years they look back into history, and it’s almost about every eight years, we’re going to go through a cycle. Real estate will cycle up, real estate values are going to go up, and then real estate values can trickle down.
Now, we had a huge, big, real estate bust in 2008 that really lasted until about 2014, where real estate had gone way, way up in 2007-2008, we reached a peak, and then we had a huge bust. A bust that we hadn’t seen in over a hundred years, since the great depression.
And that was mostly caused by predatory lending. Really wasn’t a real estate problem, it was a lending problem, where lenders were giving loans that really shouldn’t have been given out, and then a lot of those loans had foreclosed to folks that really couldn’t afford to pay their monthly payment, resulting in what we call the Big Housing Crisis Of 2007-2008.
It caused real estate prices to go way, way down. Well, what was the opportunity there? If prices go way, way down, most people are going to hold off because of fear, because of the unknown. They think prices are going to stay down forever.
But Warren Buffet, the very wise investor, Warren Buffet, says, “When everybody’s selling, then that’s the opportunity to buy. When everyone’s buying, then that’s the opportunity to to sell.” We’ve seen a recovery since 2008. Prices went way, way down. And then we started to recover in about 2014-15 prices went up, and now we’re here, 2020, and prices had gone back up.
And now we’re in this interesting Coronavirus that’s causing some economic turmoil with lost jobs. And again, we don’t know what this is all going to entail or how long it’s going to last. But the powerful question to ask yourself, and I ask myself this several times a day so that I am aware and my brain is looking for the opportunity, because there is an opportunity in every crisis.
Albeit, we hate to see the crisis happen. And I hate to even pretend that we enjoy a crisis. We don’t enjoy a crisis. We just look for the opportunity in every crisis. And that’s a difference right there. So let’s be watching together.
Perhaps you’ve been wanting to invest into real estate, and you’re asking yourself, is this the time? Is it a good time to buy a rental property? Is it a good time to even invest in, maybe, fixing up a property and reselling it? I have experience in all of that, that’s my sweet spot. And I would love to work with you, reach out. We can have a cup of coffee and talk about, is this an opportunity for you in the season?
If it’s not, let’s get you prepared. Because there’s opportunities in every season, and they can show up in a crisis. So be asking yourself over the next couple of weeks or next couple of months, instead of hovering in fear and getting caught up in the feelings of the day, but to say to yourself, what is the opportunity today? Where can I see an opportunity that maybe wasn’t here a few months ago?
Hope that helps. Reach out if we can get together and talk more.