The blood is in the streets… when did the leak start? Let’s go back in history for a better understanding of where the market is today.
Over the past two decades, Middle America became familiar with investments through the use of 401Ks and other types of retirement plans which introduced them into the stock and bond market. The equity markets were the new avenue to financial freedom and wealth.
However, because of the market corrections of the 1987 crash and the 1998 tech bubble, society was forced to become accustomed not only to the up’s and down’s of the market, but also to the extreme emotional distress of these market fluctuations.
Psychologically, those fears were reserved for those riskier types of investments and real estate was considered the new safe haven to asset diversification. Middle America started considering their own home as their investment with hopes in adding to their portfolio through purchasing a second, third, and so on.
Enter- the media. Books, tapes, DVD’s, seminars, Gurus, clubs, mentors, education- a new industry within itself- all with the common goal of showing society how they too can get rich in real estate… get rich quick.
Suddenly there was a high demand for property through the growing knowledge of how, where and when to buy. First it was California- home prices appreciating substantially by the week. Then followed Miami, Tampa, Phoenix, Las Vegas, until we got so bombarded by inventory in markets with double-digit appreciation that buyers were at a frenzy to make that $50,000 in two months.
What happened…?
To Be Continued...
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