The Global Financial Crisis and Real Estate (part 1)

The Global Financial Crisis and Real Estate (part 1)
Disclaimer: I do not know what will happen. I am just making this up like the real pundits do.
I guess the real question is, “Who will be affected, how and why?” That question leads back to the question “What is the crisis?” and “Is this a financial crisis or a confidence crisis?” The answer to the last question comes first. This is a financial crisis that stems from a confidence crisis that comes from a financial mess. The foreclosures themselves should not cause a crisis of the magnitude we face. Nor should the “real estate bubble”. Even together these two crisis should not cause a problem this big. There are not enough losses from foreclosures to do this. The “real estate bubble” was caused by speculators and most of them took the hit on their balance sheets and went on with their lives.
These two situations should have actually caused a bonanza for real estate professionals. They did not. There should have been some really great buying opportunities. There are not. That goes back to the definition of the crisis. That will come in part 2.





David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com