Thinking of Becoming a Home Buyer?

Read Between the Lines Before Investing In Real Estate

If you're planning on becoming a home buyer, keep all the media reports in perspective.

There's an old saying that "good news doesn't sell papers."

While that may be true, this saying represents a trend in media reporting that should be of concern to prospective homebuyers and homesellers.

The current tendency to focus on negative news could create unnecessary confusion and uncertainty about the real estate market, eroding home buyer confidence and even impeding future sales.

What can you do about it?

Well, for starters, take the time to get the whole story.

There's been an incredible amount of interest from the media about what the real estate market holds in store. After seeing record-breaking performances in both home sales and values throughout the last few years, and with the recent bubble burst in sub-prime mortgage market, the question on everyone's mind is "What happens now?" (Real estate timing is vital!)

Recent events such as the conflicts in the world have raised concerns about potential economic effects, and that has stepped up interest in market forecasts by another notch.

However, although real estate is certainly not exempt from experiencing the effects of a major economic downturn, there is very strong demographic evidence that continues to support a stable and vital real estate market.

Still, despite strong evidence to the contrary, consumer media creates the image of a "real estate bubble burst" in the mind of the potential homebuyer. In fact, the very imagery of the word "bubble" being used so frequently in the media conjures up a fragile, over-inflated market.

The reality is that a healthy real estate market is driven by such factors as low inventory, low interest rates, pent-up home buyer demand, and an unprecedented increase in assets and disposable income for the large part of North America's adult population.

In Canada alone, nine million baby boomers have either already inherited, or are poised to inherit their parents' wealth. They are trading up and seeking investment opportunities outside of the stock market or other more traditional investment vehicles. Their now - grown babies are also becoming players.

More "baby boomers" with more money and younger, more affluent empty nesters and early retirees will continue to fuel demand, particularly for upscale and recreational property. These demographic trends will all have a positive impact on the future of real estate, and will not disappear when the more cyclical economic factors such as interest rates start to move in other directions.

There's an abundance of information that supports a positive outlook. Real estate has traditionally performed well through times of economic and political uncertainty.

Yet despite well-supported assertions of a healthy market, the media continues to favour provocative and controversial headlines.

Be pro-active and go past the headline to read between the lines.
Concentrate on the facts and come away with a better understanding of today's real estate market and the advantages of becoming a home buyer.

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