What Goes Up…

A few years back, I took a trip to Tennessee and bought some “really good fireworks”.

I still have some left and had planned to use them over Fourth of July but I forgot to bring them along with me. So, the thrill of setting them off will have to wait again until next year.

I put the fireworks back in their safe place. But I couldn’t stop thinking about how they work.

Thanks to Google, I got my answer.

All fireworks use black powder to get up in the air, explode chemicals that ignite their bright colors, and then gravity brings the remains to the ground.

Seems pretty simple.

Fireworks may be the metaphor for the last couple of years of real estate that we’ve experienced.

The explosion in real estate values created favorable conditions to capitalize on higher home values. Just like fireworks, at some point gravity takes over and home values start to come down.

That process has begun. As home values begin to recede, there’s no reason to think it won’t be different this time.

There’s always a little twist in outcome based on things we can’t control. And yes, rates have also crested as well and that will also add to the plot twist.

The good news is that the next couple of years will bring plenty of opportunity for those who understand what we are in for.

Equity Mortgage Associates turns 40 next year. We have successfully navigated the best and the worst of the mortgage business.

We’re here to help you navigate whatever comes next in the real estate market.