The Leaders of The Masses

Let’s define the masses as the biggest piece of a pie graph for whatever subject we are discussing. For our purposes we’ll select Real Estate/owners of one residential home. Statistically this mass of people finds a reason to sell their home and buy a different one every 3- 6 years. In the long haul most of these people make money and eventually have a more valuable home or have refinanced cash out. Strategies notwithstanding, the masses tend to profit and real estate is historically sound. That’s the good news.

In this mass of people a small percentage leads the way through the market cycles and a large percentage will lag behind what the market is doing. In simple terms “THE LEADERS” risk and profit more by anticipating the low peak and selling at the crest. The biggest part of the group will wait a little too long to buy or sell their home. They still do all right but waiting until the market cycle is well on it’s way up or down misses some of the value potential. It’s safer but produces less profit, just like other markets. Let’s call that great news for “THE LEADERS” and medium-good news for the masses.

In Prescott, Arizona residential real estate is selling for at least 30% less right now than it was in late 2005. Interest rates are at a 35 year low, and “THE LEADERS of the Masses” are becoming active in the market. Mind you there is still plenty of hysteria in the media designed to influence the masses to lay low and wait but there is good evidence that history will confirm 2009 as the bottom of the market cycle and a fabulous time to buy a home. I don't fault the logic if you prefer to wait the extra year or so to make sure.

There is a powerful search engine on my website www.craigmann.net if moving to Prescott is on your list of stunning places to consider moving your life. Pay attention, work hard, and by all means live it up!