Every day I read or hear another commentary on the collapse of the sub-prime market.

The Fed has estimated that overall wealth rose 7% in 2006 from appreciation of real estate and financial assets. Not too bad in a slowing economy. Homeowner equity (nationally) is still a nice percentage at 53.1%.

Is it really all gloom and doom and we’re going broke in 2008????

No one really knows for sure what is going to happen in any economic change with 100% certainty, which is why I always strongly recommend enough cash is kept on hand so you do not have to be a seller in a slowing market. It’s always better to be the buyer of someone else’s property that didn’t plan for a downtown like you did!

 

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