Tucson AZ Home Loan Info

head_left_image

Looking Ahead: What Does The Rise In Gold Prices Mean For Your Real Estate Business?

What does the rise in gold prices mean for your real estate business?

You're a real estate agent.  You've survived thus far in one of the most difficult periods in the real estate industry since the word REALTOR was trademarked back in 1950.  Many of your colleagues have left the industry because they couldn't or didn't foresee the need to pare back expenses and find ways to continue to sell houses.

You're a survivor, and would have reason to be proud of that fact if only you had time to reflect.  You don't, though, because this market eats up every second of your time, and you're scrambling to stay upright while the world you knew so well is shifting beneath your feet.

What does the rise in gold prices mean for your real estate business?

You don't have time to look at the commodities market.  You're in real estate, after all.  But that shift that's taking place requires your attention.  Step back for a moment.  Look at the bigger picture.

As the Federal Reserve prints more dollars, the value of those dollars declines.  Supply and demand, just like the price of the homes you're selling.  Increased supply of homes for sale (and the supply of bank owned homes continues to flood the market) means lower prices, and for the moment, interest rates are low too.  You might be tempted to think that your business has actually hit a sweet spot. Avoid that temptation.

What does the rise in gold prices mean for your real estate business?

It means your business is about to change dramatically yet again, and perhaps sooner rather than later.

Gold futures hit a record high yesterday, briefly touching $1,049.70 an ounce.  It's expected to go higher.  And here's the takeaway: the price of gold forecasts inflation.  It runs up before the inflation hits.  In 1980, after a four year runup in the price of gold to more than $873, per ounce, inflation hit an annualized rate of nearly 15%.  I remember it well, as I was a real estate developer at the time. 

That 80's market took me bankrupt at age 41.  One year prior, I had a net worth in real estate of $4 million, with debt of $1 million.  I wasn't prepared.

Here's a list of the things I'm doing, courtesy of CrisisTimes.com, to make sure my business survives this next twelve months:

JOIN ME!  We live in exciting times, and there's an abundance of opportunity.

___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
SUNSTREET MORTGAGE
Call me
if I can help you or someone you know
with a purchase or refi mortgage.
(520) 349-9090

photo courtesy flickr /andrew in coins

Comment balloon 19 commentsMike Jones • October 07 2009 09:31AM
Looking Ahead: What Does The Rise In Gold Prices Mean For Your Real…
share
What does the rise in gold prices mean for your real estate business? You're a real estate agent. You've survived thus far in one of the most difficult periods in the real estate industry since the word REALTOR was trademarked back in 1950. … more
C'mon! How Can You Ignore A Face Like This? Please… Her Dad's A Loan…
share
My Darlin' sold magazine subscriptions when she was a girl. She always won first place in the contest because she was innovative. She got permission to walk home from school while the rest of the kids took the schoolbus. She knocked on most doors… more
Brian Buffini, Tony Robbins, or Todd Duncan: Structure Determines the…
share
Brian Buffini? Tony Robbins? Todd Duncan? Which system provides the best outcome for business? I don't know about you, but deep down, my everyday struggle is not with finding a business plan. It's with consistency. Consistently using the… more
Free Starbucks Today for the Early Bird: Print This Invitation
share
Free Starbucks today? You bet! Not the coffee. A scone, a muffin or a pastry! Print and bring this invitation to your local Starbucks before 10:30 a. m. to get yours! First come, first serve, until they run out of goodies to eat. … more
Bet On People Who Actually Pay Their Mortgage: Lewis Booth, American…
share
That's my first car, a '64 Ford Galaxie 500 XL. The engine, a 352 with a 4-barrel carburetor, was a joy to the senses. Gas was $0. 25 per gallon in Camden, SC. That was November 1969. I was 21. So was a young man whose dad owned a car dealership… more
HONESTY… a Parable
share
It's called Honesty, and it will grow in your garden. Google "honesty" and a plant pops to the top of the charts! Or the front of the page. Or something like that. The plant comes in two varities: an annual version, and the… more
Dealing With Change: Annie Grift, a Case Study
share
Annie Grift It put her in her grave, it did This drive to automate It never should have come to this But that's the hand of fate. She haunts the mailroom yet. I know! I work the graveyard shift. And often in the wee small hours I'll… more