What's the problem with Real Estate? What's the opportunity?

Let's face it, when properties were going sky high it was a foregone conclusion that there had to be a crash. We all know now that is exactly what happened. We know about the short-sales going on and the foreclosures. But, do we know what an opportunity this is to start over?

Think about it. Prices came down, a lot! Interest rates are still low, even as they are slowly rising, they are still a bargain. Five percent? I remember when interest rates were 16%. It didn't stop people from buying, just cut out a large segment of available buyers. When those interest rates were high, the kinds of mortgage programs available were restricted and everyone needed to put 20% down. Now, the mortgage programs available are much more flexible. Twenty percent down is desirable, but not necessary, even though the requirements for a person to be approved are as strict as there were back in the day.

Taking the availability of mortgages (banks are waiting for people to come in wanting a new mortgage, the money is there) and taking the low house prices, it's a buyer's heaven.

How does that affect sellers? We know the suffering of people who bought their houses at the height of the market as I mentioned earlier; short-sales, foreclosures. This has not been a pretty picture. However, anyone who purchased their homes before the sharp rise in prices, if they did not cash out on their equity, still will make a profit on the sale of their home.

Also, if they need to move up, get a larger home, this market actually works in their favor. They may sell their home at a loss, but the larger home they buy will be a deal and the equity is already built in to the new home. The difference in the new equity will outweigh the loss of the previous home. It's a great opportunity.

In conclusion, this tough time in Real Estate is both a problem and an opportunity. It shouldn't be feared, it should be welcomed as a time to re-adjust our thinking and our actions.