Last night I was watching a set of “Flip this House” episodes thinking how dated they’ve become in a year. Where are all those guys today?
I have a crystal ball here in my office that other Real Estate professionals seem to be looking for. My crystal ball says that pricing will return to pre 2005 with slight appreciation for these last three years. The double digit appreciation will just fade from memory.
September 2008 is projected to be the bottom of the market with an uptick in pricing Spring of 2009. The economy will weaken again at the end of 2010.
After that it’s a little hazy because we have a Presidential election coming up. The President can be good or bad, you never know. In my opinion both Ronald Reagan and Bill Clinton were surprises.
Since 2005 all I’ve talked about is selling off properties. My most harden investors sold properties in the past two years. As one gentleman said, he never thought any one would pay the kind of money his properties sold for. It was hard to get a deal to flip because of the competetion, but there were deals to be had. The trick was to get them sold before the rate increases coupled with the Adjustable Rate Mortgages reset.
These things are obvious. I don’t really have a crystal ball, it’s just that some facets of the economy are set in stone. I used to buy stock in candy companies every year then sell it at Halloween. Another Investor buys IPOs that have to do with medicine. Once you’ve been through FDA approval it’s a pretty safe bet some one will buy the product. He only holds the stock for six months to a year.
Real Estate is that easy. You buy a product people want then rent or sell it. If you’re thinking that you will learn how to do that here, you’re right. The problem is that there is no way I can show you the thousands of houses we have worked on. There’s no way to show you what’s hot from a historical perspective.
