Is The Sky Falling?

It seems that every time I turn on the news there is bad news about real estate. However, there should be an * about Texas. As of now Texas and Central Texas in particular seems to be bucking the bad news trend. Yes there is a change in the market but not on the level reported on the national news.

Even if there is a down turn locally I doubt it will be anything like the 1980's. Let's take a trip down memory lane and look at what was going on in Austin, Texas in the mid to late 1980's.

• Interest rates went as high as 20% plus.
• Foreclosures were in the thousands each month on a regular basis.
• Armed Federal Marshals were doing SWAT like raids on Saving and Loan offices.
• Financial Institutions executive officers were being taken out of their offices in handcuffs.
• Lenders could not lock in interest rates because by the time the borrower signed the loan application and the lender dialed the number to lock the rate, the interest rates had already jumped.
• If you took a listing for less than a year it was too short.
• HUD was selling homes for $10,000 with a 30 year loan and a 3% down payment.
• Entire streets of duplexes were being sold in a block.
• Investment property was being sold where the lender would count anticipated rents towards qualifying for the loan.

It was real estate Armageddon.

So when you hear the news put it in perspective. Also ask yourself this question. If the real estate market changed today what do I need to do so I can take advantage of the change?

A good agent knows they need to plan for future changes in the market.

All information is deemed to be correct but is not guaranteed. Posts are for eduction purposes only and are not intended to replace professional advice.