Real Estate News Overview:

The total number of home sales increased for the third consecutive month and was a 3.6% increase from last month.

On the flip side, the average overall home price has continued to decline. Currently the median home price across the country is $181,800. This is 15.4% less than this time last year.

Real Estate Investor Coach Response:

Quite interesting information if you ask me so what does it really mean and how can we as real estate investors leverage this knowledge to grow our business?

First of all, in regards to the economy, the fact that people are buying properties is a good thing. The “herd” (my new term for the conventional wisdom people of the country) is beginning to regain their confidence and take action on real estate again. The assistance from the government and the lower interest rates from the Fed, I believe played a strong role in this new upswing, and that is a good thing (golf clap for the government and the fed)!

In regards to the flip side of this news, the stats show that home prices were clearly inflated on a national scale and the market is simply correcting itself. Ironically, the economics classes that I took in college are starting to flash in my head as I write this article. I guess some of what I learned in college has some truth to it…markets will eventually correct themselves and get back to equilibrium, until outside forces (like the media, the government, the Fed, the banks, etc) shake things up again.

Just like everything else, the real estate market fluctuates, the stock market fluctuates, there are booms and busts, and eventually everything come back to equilibrium and then the process of ups and downs repeats. History becomes reality and reality becomes history.

So, again….what should you as a real estate investor learn from this? You should learn how to make money in good times and bad. If you don’t already, make sure that you have the knowledge to invest in real estate in multiple different ways. You need to be a transaction engineer, not an all your eggs in one basket investor. The knowledge that you can and should possess as a real estate investor will carry with you from here on out. Make sure that you are implementing your knowledge and skills every day to make as much money as you possibly can.

Until next time my friends….

No Regrets Only Results,
Brian Evans