Myrl Jeffcoat’s Real Estate News

THE REAL ESTATE NEWSLETTER FOR TODAY’S HOMEOWNER

Foreseeing Trends
“It was the best of times, it was the worst of times.”

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Foreseeing Trends
By: Myrl Jeffcoat
July 30th 2007

In Charles Dickens book, A Tale of Two Cities, the opening paragraph reads, “It was the best of times, it was the worst of times, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, and we had nothing before us, we were all going direct to Heaven, we were all going direct the other way—in short, the period was so far like the present period, that some if its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”

 


When I read Dickens words again for the first time since my youth, I realize how true they are in relation to much of life as it is experienced and perceived.


True Financial Security comes from the ability to foresee trends.

In the late 1980s Real Estate appeared to be on a never ending cycle of “The sky is the limit”. . .It was difficult for us to foresee what was to occur in August of 1990 with the beginning of recession here in Sacramento. With the decline of the Real Estate market we began to see the stock market flourish after a time. Indeed, within the last few years the stock market has climbed significantly, to unprecedented numbers.

As all things in business are measured in cycles, the last few days, the stock market has began to show signs of correction or a slowing of its cycle.

For the astute observer of the business world, this translates to the darkness of the stock market, possibly being the Light of the real estate market. Traditionally, real estate has performed well in an inflationary market. Unless interest rates become unreasonably high, as they did in the 1970s and early 1980s.

However, during an inflationary market, the cost of goods (including housing) generally appreciate at a more rapid rate.

Currently, we have housing at lower prices than we saw a couple of years ago.  We have excellent inventory, and interest rates are still reasonable. I see the present time as a wonderful window of opportunity for those wishing to wisely place capitol for future growth in real estate investment.

It has been my belief that true financial security hinges on ones ability to see trends in the business market place. And to not place all of one’s eggs in one basket. The crucial point for the most growth, is the ability to foretell when to buy what eggs for what basket.

Although, we may experience another year or so of foreclosure shakeout, I continue being a bit contrarian in nature.  I see real estate as currently being at, or near the bottom of an “up” market. . .but I see stocks as near the top of a "flat" or possibly “down” market. 

Or you can use the analogies that Dickens uses with his season of “Darkness” and his season of “Light.” The truth is, there is always Light and Darkness. Realizing there is always opportunity and choices to be made, gives us hope. It is also why some are successful, and others are not.

Dickens words in “The Tale of Two Cities” were meant to illustrate the happenings of a time he was documenting in the year of one thousand seven hundred and seventy-five (1775). . . more than two hundred thirty years ago, and the year before the American Revolution. Yet the words could very well be written to describe this very day, or yesterday. Actually they could illustrate most any time period that man has shuffled across the planet.

Although most of us do not have a crystal ball, developing the ability to foresee trends, can make a significant difference in the world of housing and business investment.

 

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If you are currently considering selling or marketing a home, please feel free to call or contact me. I can provide a free, no-obligation Comparative Market Analysis of your property. . .Or if you are thinking of buying a home, I would be pleased to be given the opportunity to sit and explore with you the opportunities that await homebuyers at the present time.

Service is always
a priority

Myrl Jeffcoat

Local Realtor since 1981

Phone: 916.635.0420

E-Mail Myrl

Sacramento - El Dorado -  Placer Counties

License# 00827565

Date: July 30, 2007