Stock Market: The Sky Did Fall

Record losses, depreciation and short sales. Sound like the real estate market? Well, it actually describes last week's activity in the stock market. Chicken Little went running and yes, the sky did fall.

Many of us were impacted last week by the extreme volatility in the stock market. Reported losses didn't have anyone jumping out of windows as they did in 1929, but examining your investment portfolio may be worth your while, if you haven't already. Now money market accounts, traditionally viewed as safe investment tools, are in question. Money managers are mixed in their opinions about where to invest. 

As a realtor, in my opinion, the one sound investment is real estate. Yes, we've seen losses in the current market and no one knows when it will turn around. However, the current conditions present many opportunities for buyers. The fact is that prices are low. Will they adjust any further? Some say yes, some no...the reality is no one knows and no one can claim to.

If you remember the most important aspect to real estate investment...location, location, location, you'll be a winner. If you find a property you deem to be a good investment, buy it and expect to hold it for awhile. That’s just the reality of this market. But having a tangible investment, especially in a resort town like Provincetown, Truro and Wellfleet, you can expect some appreciation in the coming years. Also, there is the potential to generate extra income through rentals, if you choose that route.

If a bank is willing to finance a purchase then you know the property is worth it. Consider how the mortgage industry has completely become stricter in its qualifying. If you are a cash buyer....you are king and queen once again.