Let’s just state the obvious: the economy is in (or close to) a depression. So, how can we stay positive — especially about the real estate market — in this negative economic climate? It seems too unstable to be really confident in buying or selling, but things aren’t always what they seem.

The Wall Street Journal reported earlier today that smaller mortgage lenders see opportunity in turmoil. Large mortgage companies have seen downturns of up to 72%, but for some lenders, like US Bancorp, these large corporations’ sufferings cause profitability. A direct quote from the above mentioned article:

With larger lenders now preoccupied with cleaning up the mess left when the housing bubble burst, the fact that other institutions are revving up their mortgage lending could help consumers who have had trouble finding anyone willing to lend.

As for investing in real estate, now is a great time to buy! Prices and interest rates are low, and if you can get financing, buy now. Values can only increase from a low economic situation such as this. Purchasing real estate increases your assets. Leasing is a great option these days. Buy low, turn around and lease the property, and get instant mailbox money! That sounds pretty positive to me.

Finally, when you are in a personal crisis, what do you do? Do you get angry? Do you hide out for a while and sit quietly by yourself? Do you talk it out with a close friend? We all deal with bad situations in different ways. One great way to stay positive in a tough situation is to see these threats as opportunities. (Remember, all you business majors out there, the SWOT method? Strengths, Weaknesses, Opportunities, Threats!) Our President Elect, Barack Obama, has a big task ahead of him. This quote is splashed across the page of his website:

I’m asking you to believe. Not just in my ability to bring out real change in Washington … I’m asking you to believe in yours.