Sunday, November 12, 2006
The worst real estate market.. Or was it?
Visitng the National Association of Realtors Annual Convention in New Orleans, a bad real estate market could be define by what hurricane Katrina did in 2005. Arthur Sterbcow offered these comments about his company and the year following:"If you go back and follow past disaster areas, we are following the exact same pattern. We’re like Northridge after the earthquake, Manhattan after 9/11. When you take that much housing stock off the market, it puts incredible pressure in other areas and forces people into the real estate market who normally wouldn’t have been there. Our sales are up 42 percent over this time last year. But the difference is, it’s not fun. In a normal market anywhere else in the country, it’s a pretty fun, exciting and positive experience when someone is selling their home. They’re excited to move into their new home and it’s their goal. This is like getting kicked out of your house and you didn’t want to go. Here, it’s people buying homes under the duress of human misery."
This just goes to show you that even in perhaps the worst real estate conditions and American City may have ever faced, the market comes back and the people make the market. There were 1000 more closings in the six months following Hurricane Katrina, than the six months prior. This is a prime example of how real estate is not a sound short-term investment. But, over a long-term (3-plus years), wealth is consistent of those who practice that strategy.
This just goes to show you that even in perhaps the worst real estate conditions and American City may have ever faced, the market comes back and the people make the market. There were 1000 more closings in the six months following Hurricane Katrina, than the six months prior. This is a prime example of how real estate is not a sound short-term investment. But, over a long-term (3-plus years), wealth is consistent of those who practice that strategy.
