Written By:
Ingo Winzer, President
Local Market Monitor
It's not
science, although the vast amounts of calculation and statistics make it seem that
it should be. Wall Street is brimming with math PhDs and how well did that work
out?
A
science gives the same boring answer every time. Water always boils at 212
degrees F, and it doesn't matter if it's today or tomorrow.
If
the value of properties or mortgages could be calculated scientifically, there
would never be any buying or selling because everybody would arrive at the same
correct answer.
It's
precisely because real estate analysis is not a science that large amounts of
money exchange hands. Opinions differ about current and future values, and we
have recently seen how large the differences can be, trillions of dollars
worth.
To
avoid the next debacle - or to capitalize on todays opportunities - don't look
for evermore intricate calculations, look for some better art.
No comments:
Post a Comment