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Comments About the Housing Market From a Finanical Advisors Point of View

Pessimism regarding the real estate and stock market seems to be at a very high level recently. Realtors at their weekly meetings have admitted fear of advising clients to buy a house now, as they fear prices may be going lower. This is a very encouraging sign from a contrarian point of view. Whereas the last 1-2 years were filled with complacency and the gradual lowering of prices every few months, it seems we are getting to a point of outright capitulation, giving up, throwing up, and throwing in the towel, either by foreclosure, short sale, or regarding investment portfolios, its selling at the recent market lows into cash. All of these actions are guided by emotion, financial necessity, or both. Historically all these types of actions are what you see at bottoms of market corrections, not tops or the middle. The bottom line is, unless you are a real estate flipper or stock trader, this time-frame will probably be looked back on as one of the better buying opportunities in history (for long-term investment purposes), especially if you are purchasing a primary residence or long-term vacation home, and a great opportunity to add money to your retirement accounts if you have at least 5 years until retirement (contact a financial advisor for a risk profile before investing). So remember, emotionally you will feel like buying a home or investing in the stock market is the worst thing you could do when markets are much closer to a low, and you will feel giddy, and want to buy more real estate or invest more in the stock market when they are closer to a near-term high, both the opposite of what you probably should do. So be careful, but don't miss the opportunities that may present themselves during these difficult times. Have a plan, and good luck!
Quote: Fear is what creates the opportunity, greed is what looses it!
Justin M. Connors, MBA Branch Manager Financial Advisor
Raymond James Financial Services, Inc. Member FINRA/SIPC 101 N. Orlando Ave Cocoa Beach, Fl 32931
321.868-0732 800-868-9707 321.868-0772 Fax Justin.Connors@RaymondJames.com www.raymondjames.com/cocoabeach

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  1. Brian Patton, CCIM on

    I agree it's a good time to buy. I also think the negative press has created a large part of this problem. Perception is reality. I recently heard a speech from a couple of guys that are very smart economists (at least they sounded like it and other people said they are). Here's some notes that i took from the meeting. http://www.capitallistings.com/focus-bad-news-creates-problems-markets