Real Estate Market- A Self Fulfilling Prophesy

The media plays a large role in what Americans think, how they act, and what they do with their money. There are a variety of shows on television about investment, as well as a vast amount of written literature including newspapers, magazines, and online reading material. One of the current trends in the information age is the ability to independently learn about investment opportunities.
The recent problems in the mortgage industry have become a focal point for the media. Many Americans purchased homes without understanding the terms of their mortgage. Subprime mortgages are those where the borrower has less than good credit. Mortgage companies were essentially lending money to people that they knew would not be able to pay it back when rates adjusted. This has led to an enormous amount of foreclosures. California, Nevada, and Florida are the states that have been hit with the most amount of foreclosures. Charleston real estate has not been experiencing as many foreclosures, but they are having some.
The medias dramatic response to the mortgage industry has scared people who do have good credit out of purchasing a home. This becomes a self fullfilling prophesy for the market. People think that it is a, "bad Market," or a ,"bad time to buy a home," and the entire real estate market suffers. In fact, a buyers market means that it is a good time to buy. It is not a good time to sell a house for a high price, so it is a good time to find cheap deals.
This month in my office on James Island in Charleston, SC has been one of the highest volumes of sales in a year. The market activity is picking back up, so perhaps the public's perception of real estate will as well.