Perspective

Although the recent past has seen real estate treated by some as a short term investment (to the detriment of many), the value of real estate is best seen over the long term. Some insight:

By now just about everyone in America is tired of hearing bad news regarding what is happening to real estate. Soaring foreclosures and lower house prices are in the news every day. However, if you read the article in the News Section regarding the census bureau projections, a different picture appears. In the next 40 years, 52 million housing units will be needed to accommodate growth. That is the equivalent of the United States adding the population of Canada and Mexico over a four decade period of time. At the present time, housing units are being added at a level of approximately one million per year including multi-family units. That would leave us 12 million short if we did not need to rebuild many older housing units, which of course will not be the case.

The point? People will always need a place to live. The current housing crisis could lead to a longer-term housing shortage if building continues to slow. The longer the housing slump, the stronger the recovery. So while the short-term value of your real estate investment may not be performing well, for those who understand that real estate is long-term investment, the future is rosier than ever. And for those with a real long-term vision, falling real estate prices provide a unique buying opportunity.