The financial term “catching a falling knife” refers to buying into a market where prices are falling and then continue to fall after buying. There is a reproaching quality to the term, similar to someone wagging a finger and shaking a head.

A recent Reuters article had that reproaching quality. The article pointed out that more than one million Americans who had taken out a mortgage in the past two years are now underwater: The implicit lesson being, according to Reuters, that they should have waited and that they should have put more money down.

The reality is that it's impossible to call a market bottom, but in the long term it's nearly always better to buy into a market after a precipitous drop than after a precipitous rise. In other words, whoever bought or refinanced a house over the past two year has made a smart decision that will work out to his or her advantage over the next five years. 

The good thing about real estate is that it's nearly always a long-term investment. Better yet, it's a long-term investment that doesn't continually bombard and upset owners with price updates. That means Reuters attempt to alarm likely fell on deaf ears, and that, too, is a good thing.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.