Twin Cities Economy, Real Estate, and Short Sales
There's a lot of bad news circulating out there right now. The reality is, this economy is the new normal for the Twin Cities and the entire country... for now.
Acceptance of that doesn’t mean we give up on the future, mourn our retirement funds as lost forever, dwell on the state of the real estate market and our lost home equity, or think that we can't create a plan to get back into home ownership in a couple years if we need to do a short sale on our homes due to a hardship.
We as a community can still be successful. Lots of people find opportunity during hard times. Realtors have a great opportunity to use their knowledge to get the most money for those who still need to sell traditionally and help those who are lucky enough to be in a situation to buy. We also can choose to learn what needs to be known to handle short sales so we can help homeowners who have a hardship create a plan to get past their financial difficulty.
People outside of real estate have an opportunity too. They can learn from what is going on, reduce their expenses and in the future live with minimal debt, paying as they go instead of borrowing to buy everything. I got stuck in the debt rut too. How could we help it, banks marketed to us extensively in the 80's and 90's and changed our impression of debt! Do you think our grandparents would have accepted even $10,000 in credit card debt? The Twin Cities economy needs to be a bit different for awhile to change the mindset that 20 years of marketing created.
People in trouble have an opportunity too. "How's that?!" you ask? From a real estate perspective, people who have lost their job (or who have some other hardship) and can't pay their mortgage have an opportunity to do short sales on their homes that are worth tens of thousands less than what they owe on their mortgages. Then they can put the short sales behind them, start fresh, and get back into the real estate market again in 3 years basically at today's home prices.
People get tired of hearing clichés but they exist for a reason. There IS a silver lining in every cloud (even a cloud as dark as the current Twin Cities economy) and we as a community, both inside and outside of real estate, need to find it.
Hope is the gift we give ourselves and we then turn that hope into action. What are you prepared to do?