If I had a dollar for how many times I have heard this over the last six months I would have made quite a bit of cash. People like to ask me about the real estate market even more than usual lately due to the instability of the stock market and rising real estate prices. Yet, there is a trend in almost every conversation…and that is the person agrees the real estate market will correct, but it won’t happen here. Where is here? Here is where ever they are invested or live. When I talk to my friends in Arizona, it won’t happen there because California people are moving there, when I talk to my California friends it won’t happen there because of the weather, when I speak with my Idaho friends it won’t happen there because people from Washington are moving there, and when I talk to my Girlfriend’s family in Ohio, it won’t happen there because well they haven’t given me a reason, just because.
I am not trying to call out anyone in this situation, but if you find yourself saying or thinking, “It won’t happen here.” The truth is you have to accept your own denial and the bullshit people around you are feeding you or you’re feeding yourself. When a correction occurs, it generally happens everywhere in the country. Sure, some areas worse than others, but all areas are affected. So you have to wrap your head around that.
If you’re an educated investor and understand market cycles, then you will understand where we are at right now in the market cycle. I can’t emphasize this enough, you can’t be a successful investor if you don’t thoroughly understand market cycles.
Talk to you soon,