What tends to be the trend in Real Estate now?

I ask this question to flame the fire of thought this beautiful October evening. Let me start by saying the stock market does have some say in the area of real estate but maybe not as much as you would think, tentatively speaking. Since the stock market is on everyone's mind, I thought it only relative to introduce it as a variable for the time being.

What is the trend then for real estate? Allow me to answer a question with a question. Are people getting married...yes, are people sadly divorcing...yes, are new babies being born..yes (i have first hand knowledge because my wife is due in Feb 09'), are people passing away...yes, are people moving...yes. With all this going on, men and women will either need bigger homes, downsize to smaller homes, or need to sale homes to fulfill a last will and testament.

So the trend tends to be what it has been since the conception of a deed, Americans must buy and sale real estate. Yes, credit markets have been rocked by recent events, but does this make the previous statement above irrelavant. No, of course not. Banks are still lending, people have remained good stewards of their financials, and the American dream still remains. Such a driving force cannot be distinquished by some executive who sits at a desk in a high rise in some business district downtown.

So then the question is asked, if there is this so called driving force for real estate, why all the foreclosures and deflating market prices? I have to go back to my above statement about the trend and notice I said nothing about how much time or money it takes for these trends to occur. All I am saying is the sale and purchase of real estate exists because of these variables and since the variables remain, the show must go on no matter what wall street says.

Prices are dropping because of economics. Supply is high, demand is low, thus value is decreased. Foreclosures are only adding to the misery because banks are discounting homes which is not the true market value (blog topic for another day).

There you have it for now. My blog entry for next time will center around how a realtor is proactive in our current market.

For now, so long, good day, don't wince....real estate only gets better with Spence!