We are at the bottom of the real estate market and we’ve been there for a while. The problem is, everyone wants to continue to think that we are in a depressing market. Sure, we have foreclosures yet to hit the market, we have banks with limited and restrictive loan products and we have buyers awaiting to the infamous bottom. No doubt there are many factors that trend towards a slow and long recovery, however, we, and I mean ALL of us, can effect that change NOW. We are living a self fulfilling prophecy and misery loves company, but it doesn’t have to be that way.
The general belief of a quick recovery occurring now is no different than what most sports fans believed about the 1969 Jets or the 2008 Giants winning their respective super bowls……low, very low. The difference in those games was that those players knew they could win. They knew, man for man, that they had equal talent and they had faith in their coaches to develop a plan that would be successful. The rest was easy, all THEY had to do was execute.
Albeit, a sports analogy relating to a dire economic situation may seem a little corny or superficial but, the psychology in exactly the same, dead on, I would even add.
We face a situation today that appears to have all the makings of an upset victory. First of all, we need to believe we can turn this thing around….NOW. Obviously, the trends are going to shift back to growth at some point, so why not start it now. We control it. What we need is for all of us to work together, believe we can do it and start making it happen.
First, the banks need to let the pendulum swing back to the middle. Currently, that thing is so high up the right side the good Lord would have difficulty getting a loan. This knee jerk reaction is typical in the banking industry. Historically, whenever they’ve gotten their hands slapped for doing aggressive loans they over react and get so conservative so that they’ll receive positive audit results when the regulators come back a year or so later. In the meantime, our economy suffers because the lack of credit prohibits creditworthy borrowers from obtaining necessary capital to sustain and grow their businesses. I’ve seen this happen a number of times over my career and it still amazes me why these highly intelliegent business people (yes, these folks in executive management are very smart and savvy business people) can not draft a comprehensive credit policy that is fail safe from stupid lending practices.
Second, Buyers…………….start buying dang it. The values are at the bottom, stop trying to squeeze every nickle out of the property. Don’t get me wrong, I want you to get the best deal you can, but conventional wisdom tells us that by the time you start buying values will already be on the way up. So start buying now and stop blaming the banks. Believe it or not, when the banks see the demand for loans begin to increase they will bring more products to the market.
Lastly, everyone and I mean EVERYONE, start talking it up and let’s support each other. It’s so doom and gloom out there. Call a friend, a business associate or a family member that’s caught in the middle of this thing and ask them how you can help. The more we talk it up and network, the more solutions we’ll find we result in more activity which will ultimately create the positive energy we need to turn this thing around.
We can win this game but it’s going to take US working together to make it happen. So, get out there, call someone and ask them how you can help.
