Real Estate Investment in a Recession

Have you ever noticed how buyers flock to buy property in droves when property costs are at their peak, yet buyers are relatively scarce when costs are least expensive? Notwithstanding the truth that this occurrence defies the generally accepted investment strategy to “buy low and sell high”,

one can’t help but wonder why attending social gatherings during the true estate boom years of 2005 and 2006 would inevitably lead to participating in a conversation about someone’s property investment and the promise of future profits to be derived from the venture.

It’s not all that surprising that a lot of those recently boasting about their property exploits have softened their tone while seasoned investors, dormant for the past six or seven years, have begun to once more start purchasing lucrative investment property.

Despite news concerning the recent property and financial industry tribulations that the general public is seemingly bombarded with each and real estate agent in airds every day, the previous couple of months of 2008 provided a relatively quiet, yet dramatic, surge in property sales.

The National Association of REALTORS® (NAR) has reported that residential home sales have increased by an astonishing 115% when the final quarter of 2007 is compared against the same period for 2008. Have the experienced investors purchasing all this property been ignorant to the steady stream of media reports warning of declines in property values?