Ask the Advisers

 

 

The recent volatility on Wall Street and its rippling effect on the world markets have nearly everyone on edge. But the world is not collapsing.

 

Here are some things to keep in mind:

 

1.  Calm down and remind yourself that predictions of doom and gloom are almost always overstated. Our regional economy is strong. The job base is as diverse as possible. Real estate, commercial and residential is in demand, and the fundaments are intact; people and businesses want and need to locate here. We did not experience the meteoric rise in property values of other markets and so we are not being hit as hard as they are.

2. Your mortgage is protected if you pay it on time.

3. If someone wants or needs to sell their house, now is the time to price it aggressively. Look at what the house was worth in 2003 and price it there. Prices have not come down much in Westchester, but sellers who hope to get 2006 prices will sit on the market for a year. Then they will drop their prices and probably get less than if they started with a realistic price from the beginning.

 

Think back to the tech stock bubble bursting in 2000. This is not that different. A lot of Wall Street jobs were lost. A lot of wealth evaporated. Wall Street”™s volatility and stampede mentality caused that problem as well, and Westchester survived just fine.

 

Real estate is real. It”™s tangible. It is resilient. Hold it and it will come roaring back.

 

Greg Rand is managing director at Prudential Rand Realty in White Plains.

He can be reached at greg.rand@prudentialrand.com.