After approximately 13 years of positive growth and appreciation in real estate, we are now in our 40th month of a negative growth national trend. When the recover starts (or it may have already started in your area), the psyche will not be same as it was in the early 2000’s for years to come.
It is also predicted that more general market share and position will change hands in the next 18 months, then what has occurred over the last 18 years, again weighing on the average American’s psyche.
The psychological impact of what we are going through is bound to stick around beyond the rebounding years, and is something that the real estate community will feel as they deal with the public. For example, it is interesting to look at how long it took for people to start buying cars again, even after the Depression was long behind them. And the people that went through the Depression, even today, still have a much different outlook on how resources should be spent than that of a Gen Yer.
The Psychology of Down will be interesting to watch and understand as markets start to come back. Do you think people will now be more conscious of what they can actually afford? Or do you think this will be a short lived lesson? Or do you think people will be less likely to learn lessons from this situation thinking that government is there to throw a golden parachute if necessary? Interesting times...