The news is full of commentary about real estate performance and much of it conflicting and causing confusion. Confusion deters investors even if the market conditions are good but with so many economic reports featuring analysis about some aspect of the real estate market it’s hard to work out what is really going on. Much does seem to be a story of doom and gloom and maybe had these commentators who are so eager to pass on the bad news recognised the portents a few years ago, the market wouldn’t be in the state it is today.

But is it all bad news and should investment in real estate be avoided at this time?

Current assessment

It will never be all bad news because people will always need somewhere to live, work and shop. Certainly the spotlight of the media and the negative reporting on the state of real estate hasn’t helped but as with so many other riches to rags stories, when everything was going well everyone jumped in with a view to making a fast buck. Budding and novice developers found the niche attractive but their interest was the equivalent of a smash and grab rather than being in for the long haul.

The lucrative lure of the fast buck spawned a monster. Indiscriminate developers built unsuitable properties in unsuitable locations, took the money and ran. The zoning authority, county or city, was only interested in the property tax rather than the ethics of development and planning and the banks were just in on the act with a ticket on the gravy train. Plain greed for fast or high profit on the part of Johnny Come Lately developers, the establishment and bankers made a major contribution to the current state of the real estate and the economy.

Real Estate for Economic Recovery

Real estate needs some positive advertising. And it needs to be responsible reporting. It also needs to be given back to the experts who can regulate and rebuild it. A lot of people usually only involved on the periphery of the real estate business got big chunks of the pie when the pie was sweet. The title companies, insurance companies, mortgage brokers, attorneys, bankers and other coat tail riders should leave the main stage and go back to their bit parts to give the real estate market a real chance of recovery.

A Lesson Learned

Although the real estate market is a long way from recovery, the future outlook is good. It went out of control but thanks to a major lesson learned, it’s unlikely to suffer the same again. A move into real estate, even in the early stages of recovery, is a positive move. Regulation has improved and those who learned an expensive lesson, if they survived the down turn, have become more cautious. The greedy hangers on know the killing has been made, banks are acting more wisely and whilst not being able to be tagged as completely safe or a sure thing, an ordinary investor shouldn’t be deterred from entering the real estate market now.