Housing Market Recovery Rate Indicates Less Volatility than Ever

Housing Market Recovery Rate Indicates Less Volatility than Ever

11/05/2013 BY: ASHLEY R. HARRIS

Renewed profitability in the Real Estate Market lacks the troublesome “irrational exuberance” that caused problems in the past, according to Wade Micoley, President and CEO of  WM Enterprises, Inc., and the online auction house Micoley.com.

“We’re happy to see things recovering of course,” Micolay said, “but we’ve never been so cautious about expressing our optimism.”

He says, however, that the pace at which the recovery is being seen shows that investors have learned valuable lessons. “Even with renewed sales and profitability, we’re seeing signs of unprecedented stability.” He notes that stability of this type is exactly what everyone wants to see in 2013.

Micoley.com noticed that despite overall economic growth, the country as a whole didn’t buy more homes in September than in August during its recent auction event. With approximately 5.3 million sales in both months, it’s hardly a staggering boom. Micoley says this is actually good news.

When investors take an interest in something, it tends to attract the attention of other investors, who will do the same. The result can be significant economic growth over a short time, according to the Wisconsin-based entrepreneur. However, if the assets become overvalued, and investors continue to invest, only to realize all at once that their investments aren’t as valuable as they once thought, it can result in a rapid regression that undervalues those same assets in a short time. This can be dangerous economically, Micolay says.

Real estate investors are showing renewed interest in buying property, but they aren’t overeager, despite September being a month of growth overall. This type of level headedness needs to be applied across the board.

 

Advertisements
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: