With so much statistical information readily available
at the click of mouse or the tap of the keyboard today,
it has become difficult to decipher what is fact from fiction,
and what is recycled propaganda from truthful, practical knowledge.
That is why Realty Economics was created. This publication of facts,
figures, statistics, and credible information will attempt to sift through
the superfluity of data and report what is real and simply what is not,
who is credible and more importantly, who is not.
Currently our national economy is in a state of flux.
Some of the leading and lagging economic indicators
are at odds with one another. Our economy is
somewhat of a paradox at the moment. Realty
Economics will further expand on this in later articles.
With that said, I will make an obvious, and a mostly
known statement that bears repeating anyway.
Real Estate, whether it is a single family dwelling, or an
Income-producing high-rise, is an INVESTMENT. An
investment not unlike the other vast and diversified
investments in the financial markets.
The main differences are in the monetary returns and
the risks associated with any one particular investment.
On the whole, real estate historically, has been a
relatively safe and positive, consistent investment providing
stable returns over the course of the last 40 years.
Anyone who purchases real estate is an investor, and
for the purposes of this article we will assume that the
typical investor is not someone who is a seasoned
player – so to speak.
So understanding at least the basics of macroeconomics
as well as microeconomics will serve the investor well.
If you think that National and Regional GDP, CPI,
Un-employment, and Home sales, etc. does not affect
your decision(s) or should concern you regarding a
particular real estate purchase…then I in turn would say,
you may be ill-informed and might possibly be on your
way to making a poor purchasing decision.
Too many investors rely on faulty, and unreliable
sources of information, and when I refer to faulty
sources I am inferring to some of the fly-by-night
so-called real estate and realtor industry newsletters,
magazines, web pages and websites that litter the
information highway. Even some long-time publications
from realtors are misguided in their overly optimistic
opinions of the market. But that is not to say there aren’t
any good people within the industry.
There are those men and women that have the experience and wisdom
to understand the big economic picture, but they seem to be few and far
between. Although I will say that a particular editor of an online realty publication, RT, is one of the most knowledgeable and realistic real estate industry persons I have come across.
The recently graduated sales associate/agent would not
be the person to rely on for reliable, timely economic
information, and real estate investment advice.
That does not preclude the veteran real estate sales
person either, because the truth is there is many
out there who do not fully understand the effects of the
national and regional economies, economic indicators
and forces that influence real estate.
Unfortunately, the above-mentioned sources have
shown time and time again that a portion of the said
sources just do not have a very clear understanding
about Leading and Lagging indicators, or a basic grasp
of how the U.S. economy works, and how it effects a
particular investment.
Unreliable and uninformed sales persons with regard to the
economy are not limited to the residential market either,
there is a fair share of commercial realty persons out
there that are not fully aware as well. Investors be wary.
Investors must do their homework. Investors must be informed.
