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Antidote to the Real Estate naysayers

by sfishome on November 16, 2007

Wish I could take credit for this compilation of old headlines… but it comes from the COO of Intero Real Estate, Tom Tognoli, by way of an Escrow rep I know, Lili Seif at CornerStone Title Company:

“The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.”
– Time Magazine, 1947

“The goal of owning a home seems to be getting beyond the reach of more and more Americans.” (Average price at the time: $28,000)
– Business Week, 1969

“The era of easy profits in real estate may be drawing to a close.”
– Money Magazine, 1981

“If you are looking to buy, be careful. Rising home values are not a sure thing anymore.”
– Miami Herald, 1985

“Most economists agree…a home will become little more than a roof and a tax deduction, certainly mot the lucrative investment it was….”
– Money Magazine, 1986

“We’re starting to go back to the time when you bought a home not for its potential money-making abilities, but rather as a nesting spot.”
– Los Angeles Times, 1993 (Note: 1993 was the absolute low-point for real estate values in Los Angeles. Priced have sky-rocketed since.)

“Financial planners agree that houses will continue to be a poor investment.”
– Kiplinger’s Personal Financial Magazine, 1993

“A home is where the bad investment is.”
– San Francisco Examiner. 1996

I personally love the “Financial planners agree…” comment… Financial planners have a stake in your investing in stocks where they make a commission. The same jab we Realtors get. Sure there has been irrational exuberance in both, and it’s smarter to buy at the bottom then at the top. But NOW that there are many more naysayers, that’s is the bottom… the time to buy… simply because the “experts” are telling you not to. Just about all of the above headlines were published during downturns in the market… only to be followed by significantly improved markets.

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