Posted by Gregory Damis - CNHS on
Jul 6, 2023
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Are YOU Missing the Real Estate Boom?
By: David Lereah
David Lereah served as the Chief Economist for the National Association of Realtors (NAR) where he acted as NAR spokesman on economic forecasts as well as all policy issues and trends affecting the US real estate industry. Several years ago I had the opportunity to meet David Lereah. His ideas catapulted my real estate career and investment strategy. Here are some of the takeaways from that meeting and his book “Are You Missing the Real Estate Boom?”
Double-digit growth is not always real or realistic. Over the course of my 38 years in real estate I have seen this type of surging market activity happen several different times. What I have learned is that a frenzied local real estate market is neither sustainable nor desirable.
I also learned that you can’t time the real estate market. Regardless of the market conditions, I’ve purchased many properties and over time they still produced income, tax benefits and their values eventually exceeded my expectations. Try to avoid the mentality that you’re going to time the market - it’s far too difficult, and you’re better off following a pragmatic strategy.
A profitable market is not necessarily characterized by market growth alone. Just because the residential real estate market is slowing down, that does not mean you have missed your chance, or that it is no longer a lucrative time to invest. Seek the advice of a professional who can help you identify opportunities in today’s market that are in line with your investment goals.
There is a wide variety of real estate investment types to consider. From homeowners investing in their current property through improvements or renovations to rental properties, vacation homes, Real Estate Investments Trusts (REITS) and more.
If you consider real estate investing as a plan for more than a decade and not years you will “experience substantial and satisfying wealth gains.” Real estate is an excellent long-term wealth-building asset. So be patient and don't expect immediate results. The long-term trends tell a clear story about the resiliency and stability of the real estate market.
Real estate doesn’t need a boom to surge. Returns from real estate investments will consistently offer benefits more than that of other investment vehicles, such as stocks or bonds, even when the market is not surging. Properties represent real assets that have practical, functional value, and historical data indicates that real estate has one of the most consistent rates of growth of any asset class.
Check out Greg's video on real estate investing and David Lereah's book, Are You Missing the Real Estate Boom?
