My New Blog

I recently had the opportunity to attend a live simulcast for a "Town Hall" meeting hosted by financial guru Dave Ramsey. If you are unfamiliar with Dave he has developed a reputation over the years as one of the most knowledgeable, practical and sound financial advisors in the country.  He has helped 1000's of people restructure their financial lives through his program. He has authored several books, has a radio show, web site and makes daily appearances on TV's FOX Business news.  

The focus of the meeting was Dave's perspective on our current economic situation, how we got into this mess in the first place and how America can get back to being America. This forum was supported by incoming phone calls, emails, text messages and faxes from the general public all of which he answered with the same truth and passion that has led to his great success.  Dave gets right to the point and doesn't beat around the bush.  I respect him because he call it likes he sees it and he is usually right. 

Being a Real Estate person my ears naturally perked up when he began to speak about the housing market in general and its relationship to our current economic crisis. I thought I would share with you a couple of key and interesting points hew made while addressing this topic.

Point I:  What is creating the greatest impact on our current housing situation and economic desperity is not over building, bad loans, tightening of credit, inflated home values or unemployment.  The single most significant factor is our own FEAR.  For the first time in our nations history the American consumer, the public in general has succumbed to fear.  By no means is our current situation the first time our economy has been shaken. But unlike historical times when America buckled down, found solutions and in general refused to settle for less this generation has "rolled over" in fear.  We have actually as a consuming nation allowed ourselves to become "gripped" within our own uncertainty due primarily to the "sensationalism" reporting we experience daily through the TV, News Paper, Radio and Internet. You'd think based on the news that America was finished, done far, washed up! What happened to the "can do" attitude that made this country the most successful industrialized nation in the world.  When I really thought about this perspective I had to admit that I was as guilty as anyone.  I had allowed fear to overtake my normal very positive emotions and attitude.  In doing so I had lost sight of the REAL FACTS and blinded myself to the reality of all the opportunity that truly existed within our marketplace.

Point II:  Reality Check: If we take the time to research our economic history we will find that at several points since the early 1900's our economy and housing markets experienced worse times than what we are presently experiencing. This is not by far the worse. Look at the depression of the 20's.  This struggle is not that bad.  Sure we've all loss wealth but not everything as so many did in the crash.  The market hit its low point around mid March (approx. 6500 pts.) but by May was up over 30%.  Somebody made some money.  Of course you didn't hear about that in the news. It was still gloom and doom.   Anyone can find a problem or a negative if they look hard enough.  Look at the late 70's.  Gas was hard to come by.  Lines formed everywhere. The market took a dive like a tank.  Unemployment shot up like a Roman Candle (in appreciation of the 4th) but we weathered the storm because we did not allow fear to overtake our emotions as a society. We pushed forward. Look at the mid to late 80's- 20%+ interest rates, inflated prices, unemployment and again huge looses in the market.  Thank goodness for FHA and the 245 B as well as the ol' 5-3-1 buy-down.  That was the only way we could qualify people for home loans.  But the point is we did it. WE DIDN'T QUIT!  We got creative and found solutions and we pushed forward.

In closing I just want to say WAKE UP America!  Look around you and see the reality.  Austin, Texas and its surrounding marketplace is still a viable environment for opportunity. Certainly it has felt its pains but still remained very healthy comparatively speaking with other marketplaces throughout the country.  There are still jobs.  People are still working.  While true foreclosures are up and new home starts are down, there remains a lot of inventory available and at GREAT PRICES and incentives.  These are great opportunities for someone if they know where to look and how to negotiate the deal. So cast aside that fear.  Stop wasting energy on negative emotions and remember opportunity is what you make of it.