It's hard to believe that June and July are gone already, but that's what happens when you're busy. Having left the Louisville, Kentucky real estate market in late June and then entering the Beaufort, South Carolina real estate market in early July, I have been able to have a unique view of what the "real" activity of the housing industry is. So, here is my opinion;
First, the media is really having a field day with the mortgage industry. I have long thought that when you want to sell news and there isn't anything new happening, the editors and producers send the "reporters" out to re-hash some old news and then put it out as "breaking" news. All of this is sensationalism and causes the Sellers to stay on the sidelines and the Buyers to stay in their apartments and homes because they are afraid of "losing big" in real estate.
Secondly, we are getting into an election campaign which means that you can't believe anything that is being said until January 20, 2009 at the earliest.
So what are we to do? Hide until the new administration comes in?
I don't think so and to prove it, I am still buying and selling real estate. Why? Because real estate is one of the very few things that can be invested in that is very difficult for an "outside force" to manipulate. (An example of market manipulation is the retail gasoline industry, which is acting like a monopoly.) Real estate is difficult to fix prices in because it can't be "produced" only improved, and it is very local in price structure. The really good thing is that if you look at the long term, it always appreciates! It might take 5 to 10 years, but there are few, if any, places that regress. The key is to know what you can afford and stay BELOW that number. That's what the banks used to do until they decided to take on more risk and loan 100% or more on property. People bought homes that were above their "affordable" number, (generally a fixed payment not more than 32% of income less debt payments,) and now they can't make the payments. This is an opportunity to purchase at below market levels, but do not forget that you too have an "affordable" ceiling or you could wind up on the other side of the fence.
So, to use the stock market jargon, buy low and sell high! Be prudent and you can capitalize upon an opportunity. Remember that this process may take past 2010, so plan accordingly. A piece of real estate is only worth what someone will give you for it. Always has been true and I don't see it changing anytime within our present economic system.