Editor:

I have been asked by many of my friends and neighbors, “What’s really going on in the real estate market?” History in local real estate and my experience are the best guides I know to answer this question. About every generation (20 years or so) a major correction takes place in real estate. The late 1960s early 1970s, again the late 1980s, early 1990s, and now here in 2007 and 2008. History does repeat itself. Now why does this happen? It can be excessive interest rates, inflation, or Washington messing around with the market in one way or another, and more recently the media spinning stories to stir the pot.

Whatever the market, people still need homes and this remains true today. Babies are born, folks die, folks move here, people move away: life’s changes adjust our housing needs. This is a great time to buy, as it’s a buyers market, so buy if you can. Sell if you must, and most sellers will do well financially even in the down times. Mortgage rates are excellent and there is lots of money to lend. Be mindful of your credit score and follow good credit practices to improve it.

We live in a wonderful part of the greatest country in the world, so let the correction take place as it will. The negative remarks we hear in the media daily will happen regardless. Remember, it will snow this winter, spring will come again and so will the pretty spring flowers, the robins will return and our local market will be back to normal. After 50-plus years in the real estate business I know we’ll pull through this.

John D. Downing

Downing Real Estate

Kennebunk