My Dad Always Said, “Buy on Bad News…” Why Now Might Really Be the Time

My Dad was a stockbroker and has always said, “Buy on bad news, sell on good news.” Over the years he’s made great money with that strategy. As soon as everyone wants to buy – he’s out.

I’m not sure the philosophy ought to be much different in the housing market. Yet the fear, the challenge in the financial markets, and the negative remarks from friends and family is keeping buyers out of the market. But how long do you wait on the sidelines?

May 29th, Jonathon Lanser had an interesting article in his blog about the 15.4% decline we’ve seen and that a recovery may not be until 2010. Clearly not good news.

The worst of the decline may very well be behind us – but the recovery is not here yet. Maybe this is the window of opportunity. Michael Carney, the Cal Poly Pomona professor who heads the Real Estate Research Council of Southern California said, ”Once we get people thinking prices will go back up, we will see a fast turn. There’s a lot of money ready to go.”

It may not make sense to wait for the ‘good news’ that prices are rising again and if Carney is right, how quick can you get in on that ‘fast return’?