How To Spark Home Buying Again
Banks are being bailed out and more home loans are being modified, but what to do about home sales? What will spark people into home buying again? Especially with our foreclosure saturated city of Chula Vista in San Diego. A new plan has been announced to be in development to use Fannie Mae and Freddie Mac to reduce mortgage rates for new home loans as far as 4.5%. it is not clear at this point how such a plan will be implemented. The government could perhaps buy down interest rates using TARP funds or they could perhaps just create a new temporary program through the two government controlled agencies FANNIE MAE and FREDDIE MAC.
visit: http://www.equityinmotion.net for local san diego and chula vista real estate and financing info.
Wednesday, December 3, 2008
Monday, November 24, 2008
Herd Mentality
Herd Mentality
It is amazing how caught up in the herd people can get sometimes. A few start running in one direction and pretty soon it turns into a herd of hysteria. But what happens when a few people from the herd stop and turn around in the opposite direction? Just as when good old Forrest Gump stopped running, everyone suddenly becomes disoriented and confused. Some want to continue in the direction they were headed, but the overwhelming feeling of wanting to be a part of the group causes them to turn around and follow the herd.
There is always a herd running in some direction, whether it is the herd that proclaims the next dot com stock is going to go up in price forever, or the herd that is certain that the property they want to buy will double in value every year. Unfortunately, it is very difficult for most people to think outside of herd mentality. Now that the herd has stopped charging full speed ahead in the real estate market, many people are left standing disoriented and confused. Some people want to sell everything now with the same hysteria they had when they wanted to buy everything in sight. This has led to the drastic change in the real estate market, the rise in foreclosures, and a rise in the not so well known “short sales.”
It is much easier to get caught in the herd mentality than it is to go against the flow. This fact is part of what makes herds so important. The herd is predictable. You can count on a herd to move together in one giant mass. The herd is also dangerous. You can count on the herd to shake the ground as it moves. The herd has no direction except for the direction it is going. Sometimes the herd can get lost. The herd only moves because everyone in the herd is moving.
We must stay outside of the herd, always watching closely. When the herd begins to run out of steam, it might be wise to head in the opposite direction (even though the herd thinks you are nuts!).
Don’t forget to visit: http://www.equityinmotion.net
It is amazing how caught up in the herd people can get sometimes. A few start running in one direction and pretty soon it turns into a herd of hysteria. But what happens when a few people from the herd stop and turn around in the opposite direction? Just as when good old Forrest Gump stopped running, everyone suddenly becomes disoriented and confused. Some want to continue in the direction they were headed, but the overwhelming feeling of wanting to be a part of the group causes them to turn around and follow the herd.
There is always a herd running in some direction, whether it is the herd that proclaims the next dot com stock is going to go up in price forever, or the herd that is certain that the property they want to buy will double in value every year. Unfortunately, it is very difficult for most people to think outside of herd mentality. Now that the herd has stopped charging full speed ahead in the real estate market, many people are left standing disoriented and confused. Some people want to sell everything now with the same hysteria they had when they wanted to buy everything in sight. This has led to the drastic change in the real estate market, the rise in foreclosures, and a rise in the not so well known “short sales.”
It is much easier to get caught in the herd mentality than it is to go against the flow. This fact is part of what makes herds so important. The herd is predictable. You can count on a herd to move together in one giant mass. The herd is also dangerous. You can count on the herd to shake the ground as it moves. The herd has no direction except for the direction it is going. Sometimes the herd can get lost. The herd only moves because everyone in the herd is moving.
We must stay outside of the herd, always watching closely. When the herd begins to run out of steam, it might be wise to head in the opposite direction (even though the herd thinks you are nuts!).
Don’t forget to visit: http://www.equityinmotion.net
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