I have to admit that I have been kind of jealous of some friends who moved ou of this area. Some of them have made a killing in the last 5-10 years on real estate investments that they have made. More specifically, these were real estate investments in the Carolinas.
We never participated in the massive housing boom that so many other areas in the United States experienced. I think that our high property taxes around here prevent things like that from happening. I suppose they are still possible, just far less likely. If they did happen here, they would probably develop much more slowly than other areas of the country.
Now that the real estate market has taken a turn for the worse, I am kind of grateful that we never experienced that boom. No boom hopefully means no bust. I think the banks around here are far more responsible when it comes to making loans to people also. It seems like even though I have good credit, banks are still hesitant to fork over huge amounts of cash.
That should bode well for the local banks’ balance sheets. Maybe there is opportunity here to own stock in them?
So, I guess if you are looking for a silver lining in the way things are done around the Buffalo area, you can rest assured knowing that the lack of froth in the local real estate market has pervented the need for home prices to give back any of the last 5-10 years of capital gains.