For the past six months of 2008, we have been bombarded with negativity in the markets; Banks hemmoraging capital, stock markets sliding, credit is freezing up, unemployment is mounting. Then today it was reported the Saint Louis metro area reported a 63% drop in home sales compared to October, 2007, the largest in the U.S.  The median price for a home in the St. Louis area is now $132,000, down 9% from a year ago.  Some would consider this to be negative news, given the recent job losses in our area, but this should be looked upon as a good opportunity for many.  With our government working to stablize and bring liquidity back to the credit markets, many will benefit from the recent record drop in mortgage rates.  However, sitting on the sidelines waiting is gambler’s falacy.

     If you follow the stock market, you realize 2008 was an enigma in many ways.  Incredible volatility, amazing swings, record one day losses, and constant uncertainty.  Two months ago I made a statement that the Dow Jones Industrial Index would not get below the 7400 range, as from a technical standpoint this number would be hard to break.  Since it touched this number last week, we have rebounded to 8400.  In addition, it has been encouraging to see investors buying on a rally, indicating we may be seeing a light at the end of the tunnel.  So what does this have to do with real estate?  Well, it is much like the stock market, buy low and sell high.  If recent market events are any indication, now is the time to take advantage of a rebounding market. 

 
-E.Steska 11/26/2008
(Please be aware that this article is for informational purposes only, and should not be used as a basis for investment decisions. It is merely an opinion.)