The news of my death has been greatly exaggerated!

Okay, so Mike Cooper is awesome!  In this blog he wrote, not only did he use one of my family's favorite movies to prove a point, but he teaches the ins and outs of why we can't trust what a national news station says about the real estate market.  It really is geographical, and can't be summed up nationally because it simply isn't a true picture of what's really happening.

So, read on and enjoy!

Is the real estate industry dead?  No, it's only "mostly dead."  If you're a fan of the movie, "The Princess Bride," you've heard a line something like that before. 

In the movie, Westley(the hero), who was masquerading as the Dread Pirate Roberts, was in hot pursuit of the love of his life, Buttercup.  Buttercup was kidnapped and betrothed to Prince Humperdink who was the bad guy in the movie.  Westley gets captured just before he gets to Buttercup, and he is tortured by the Prince's nasty six-fingered strongman.

When his friends find him he looks dead.  They take him to Miracle Max the local medicine man (Billy Crystal) who is asked if Westley is dead, and he replies, "No, he's only mostly dead."  Westley needed a reason to live, and when they filled him with air and then pushed it out he said it was "true love" that was keeping him alive.

If you read the headlines of many real estate blogs and journals you would think the real estate industry is "dead."  The July 6th  Realtor Mag article, "Real Estate is at a historical turning point," stated that the market may be nearing a bottom this year.  It states that there is some belief that it may be reaching a level of stability, but it will not likely see great growth through 2015.  The article estimates that the US will experience an annual home value growth rate of only 2% over the next few years.  It could be worse, and it has been.

In the movie, Westley is carried to the castle to rescue Buttercup from the wicked Prince Humperdink.  Westley is weak but willing to fight.  He can't even stand up by himself in the beginning of the rescue, but as he gets closer and closer to Buttercup he regains his strength.  What kept him going?  True love. 

One of the greatest struggles for many agents is deciphering what the market is really doing.  Scott Simon of Pimco recently stated in an interview with the Wall Street Journal that the housing market never really entered recovery.  Other writers say we're on the road to recovery, and still other "experts" tell us that the recovery is in full swing.  Who's right?  It depends on where you live.

Recovery is geographical.  If you only rely on media reports of the housing recovery you probably feel a lot like Westley after his torture experience.  He looked dead.  If you rely on what you see in your community, you may feel only mostly dead, but you also see every glimmer of hope. 

An economic writer sitting in a skyscraper in New York City has no idea of the dynamics of your community.  He relies on data that is fed to him, and based on that data he makes calculations that form his thesis of economic recovery. 

You, on the streets of your community, know more about the economy in your community than the talking heads on CNBC, Bloomberg or Fox Business.  So, before you succumb to the torture of the current market, let the true love of what you do give you the strength to overcome the obstacles that you still face.

Westley got to the gate of the castle only to find armed soldiers waiting for him.  He used creativity to overcome them, and he ultimately rescued Buttercup.  He was still weak, but he was motivated.  You may have taken a hit from the recession and the explosion of the housing bubble.  That may mean you need to become more creative in your approach to real estate marketing and sales, but remember, the market isn't dead.  It's only mostly dead, but the true love of home-ownership will ultimately breathe new life into the market, and when it exhales, you need to be there armed and ready to seize the day.

 

 

(Disclaimer:  All grammatical mistakes, punctuation breakdowns and misspellings are purely for your amusement and entertainment.  Feel free to cackle.)