Patti Phillips
Prudential California Realty
6119 La Granada
Rancho Santa Fe, CA 92067
Direct toll free: 800-680-9133
Cell: 619-507-2100 Office: 858-481-2020

Thursday, December 20, 2007

Our Perspective on the Negative Real Estate Headlines

If you read the same newspapers that I do, all you see is "doom and gloom". Our own San Diego Union Tribune is the biggest proponent of the doom and gloom- on a daily basis. Often the headlines tout "the sky is falling, the sky is falling....", but when you read the article underneath, there really is very little to be negative about!

To share some perspective with you, I thought you might enjoy reading the following article by Prudential California Realty's President and CEO, Steve Rodgers. I think that he puts things very well concerning our real estate market.

"To be newsworthy, a story must be immediate. That’s why the current real estate market is such a hot media topic — and why the long view doesn’t get much ink or airtime. That’s too bad, because that’s where you’ll find the most compelling real estate story of all.

1969: “The goal of owning a home seems to be getting beyond the reach of more and moreAmericans. The typical new house today costs about $28,000.”– Business Week

1977: “The median price of a home today is approaching $50,000. Housing experts predictprice rises in the future won’t be that great.”– National Business1985: (Median home price $152,720.) “The golden-age of risk free run-ups in home prices is gone.”– Money Magazine

1996: (Median home price $194,382. Defense cuts had triggered steep home price declines.)“A home is where the bad investment is.”– San Francisco Examiner

In the three years following that last statement, California home prices rose 19.7%, wiping out the losses of the early ‘90s and ending the decade with a net gain of 9.35%. By 2000, the median home price had hit $273,713.In 2005, it reached $603,927.

The media continues to play up bad economic news, including real problems in the lending marketplace. The truth is, a home remains the most enduring investment most of us will ever make.

That’s because the return goes so very far beyond financial rewards. To own a home is to make a priceless investment in our lives — and a confident affirmation about our future.

We’ve noticed that real estate professionals at the top of their game are actually energized by challenging market cycles.It’s an exciting opportunity to show their clients just what they can do.

Teaming up with an agent like that is no challenge at all.Just look for the Prudential Rock."

I think that Steve says it well!

No comments: