by Ed Neering BIC,
One of the greatest investors Warren Buffet made 2 quotes famous, and are so pertinent now when it comes to the local Holly Springs Market. The current market is following a similar path that happened during the 2005-2007 cycle and you should pay major attention if you're planning on buying soon.
#1. "Real estate will always be cyclical." - Warren Buffet
Yes the market has good times and bad, there are times of boom and bust. The only way you can protect yourself and your homes equity is by learning and educating yourself of these cycles and minimizing the affect it can have on you and your home financially.
#2. "We will have another bubble, but usually you don't get in the same way you got it before." - Warren Buffet
The last major bubble was caused by loose lending of the banks and mortgage companies, along with the greed of Wall Street. People were not prepared and many lost their homes. SO is it going to better now that the banks and mortgage companies are better leveraged than the last bust?
I have been blessed to be in real estate for over 30 years. I have witnessed 3 major market corrections and as Warren Buffet states above, each one starts a different way. One thing that I have noticed is each of the last 3 shifts, each one is more severe than the last.
My next post I will be covering the 4 major signs that a market correction is coming.