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Executive Corner: Is real estate on its knees like the media portrays?

By
Services for Real Estate Pros with Crye-Leike, Realtors

Dick Leike, President, Crye-LeikeFrom the desk of Dick Leike, President, Crye-Leike

2007 is a very interesting year in real estate. To listen to the press and newscasters you would believe the housing industry is on its knees. The negative press alone can take its toll on consumers.

In looking at the facts, here at Crye-Leike, we are certainly having a very good year. Yes, last year was a blockbuster, but most of the same dynamics are in place this year. Employment is good, mortgage loan rates are near the lowest in 40+ years, and the amount of homes on the market allow for choice.

A home is not discretionary. We all have to have a place to call home and lay our head down. Needs are constantly changing. We actually help fulfill the lifestyles of Americans today. A house is sold because it no longer meets a need. A home is bought because it provides the style of living the buyer is searching for. These same needs are present no matter what the press has to say about housing.

It all boils down to whether we wish to follow others who expound bad times, or do we realize that we are in the best country in the world and during the best of times. "Only in America," as they say. It is beyond doubt that the dream of homeownership is alive and well here in our neighborhoods. Atlanta, Chattanooga, Nashville, Memphis, Jackson, Little Rock and from Northwest Arkansas to Northeast Tennessee to the Gulf Coast, we are all in a great position to take advantage of the value our real estate offers the consumer.

Let's thank the Lord we are in such a great section of our country. No, it may not be an order taker's market. Truthfully, that does not take much skill. On the contrary, we associates know the value of time well spent in cultivating customers, converting them to clients, and continuing to help them through life when it comes to meeting their real estate needs.

perspectiveIt's a natural tendency to try and place real estate in one category. Just thinking that because there is an oversupply in one area that the same is true all over. Or because prices fell in an area, that prices are falling all over. Real estate does not fall into a neat little package. We all know the old adage is still true today: location, location, location. Not just in a certain city or town, but by a much smaller area. In the same town there can be undersupply and oversupply, prices rising and falling.

There are sales today reaching new highs when figured on cost per square foot. We are the professionals. We make it our job to understand the difference and help our clients through one of the biggest financial decisions of their life.

Keep sharp, pay attention to the customer's wants, and stay away from the naysayers. You are part of the greatest team in real estate sales, leasing, insuring, managing, financing, closing, and so much more. That's what it takes, and you have it!

Comments (9)

Rebecca Savitski
BSR Real Estate Group - Cary, NC
NC Real Estate Listings
No - If you are still able to make living selling real estate than I do not think it is as bad as the media is making it out to be. I have not felt the heat.
Aug 10, 2007 02:49 AM
Angie Vandenbergh
Crye-Leike, Realtors - Memphis, TN
A Crye-Leike Blogger
Rebecca - Thanks for sharing your perspective from the Raleigh area.
Aug 10, 2007 02:56 AM
Angelo Mozilo
Housing Blog - Hermosa Beach, CA

Thanks for the upbeat post,

Consumers should remember "real estate never goes down"-NAR

This whole sub-prime market crash is just the news media telling a story...

RE is always the best investment no matter what the price...don't "Miss the housing boom"

Aug 10, 2007 03:01 AM
Dan Homan
Coldwell Banker Ellison Realty, Inc - Ocala, FL
I think the basic market has not changed.  There were investors and speculators over the last few years who were clueless about market fundamentals, but if you factor out these homes the market is really unchanged over the last few years.  The really damage the media does is all these home flipping and staging shows have done to consumer attitudes on pricing what the Antiques road show did to the collectibles business.  The key with the media is if there is no scandal there is no news.
Aug 10, 2007 03:06 AM
Angie Vandenbergh
Crye-Leike, Realtors - Memphis, TN
A Crye-Leike Blogger

Angelo - That's interesting what you point out about subprime....because this post was written from Memphis - one of the biggest foreclosure markets right now.

Dan - Thanks for stopping by. True, but I sure still love all the hgtv remodel, flipping and selling shows.

Aug 10, 2007 07:26 AM
Janie Coffey
First Coast Sotheby’s International Realty - Ponte Vedra, FL
Uniting Extraordinary Homes w/ Extraordinary Lives
Angie, I definitely BLAME the media in part for some of the issues we are having.  No doubt there would have been some sort or correction, at least here in FL, but the standoff we have seen b/w buyer and seller, is due, in large part, to the media....
Aug 12, 2007 11:35 PM
Angie Vandenbergh
Crye-Leike, Realtors - Memphis, TN
A Crye-Leike Blogger
Janie - sounds like the next idea for your blog.... "stand off between buyer and seller" sounds like you may have an interesting story there.
Aug 13, 2007 12:13 AM
Patricia Clink
Watson Realty Corp. - Saint Marys, GA
It is frustrating to turn on the TV and hear the "news" about doom and gloom for the housing market.  I find myself in a pretty good position in that my business has tripled from last year.  I think focusing on the basics have made the biggest impact for me.  On a side note, I teach the real esate pre-license course in Georgia.  My last class started with 40 students!  I was very surprised at the number of people who had signed up considering all the media attention on how slow the market is.
Nov 10, 2007 07:21 AM
Angie Vandenbergh
Crye-Leike, Realtors - Memphis, TN
A Crye-Leike Blogger
Patricia - I think those are great examples. There are certainly people who have been able to increase their business.
Nov 12, 2007 01:18 AM