So how do you combat a newspaper headline like that???  Our local newspaper consistently focuses on the negative aspects of the real estate market, no matter what the real current status.  2 years ago when the market was truly unbelievable they reported that agents were getting overpaid for quick services, now they are reporting about our area of Northern California being at a "13-year low" for home sales.  Sharing that there are barely any homes moving in the market (with 250 pending!) What will be next? 

Of course, we are very familiar with what is going on in the market nationwide...our neighbor 4 hours south, Stockton, is currently the number 1 city in the nation for home foreclosures with Modesto, another nearby city being a not-so-distant second. 

But what do we tell our buyers???  We share with them the real statistics...those that show over 250 homes currently pending escrow, the historical trends of interest rates and how low they still are, the sheer number of homes available in our local market (over 2000) and the fact that many sellers are still in a position to negotiate.  Additionally the REO homes that are available are sometimes able to be purchased at great prices as long as you are willing to spend time (upwards of a month) waiting for a response from the bank that owns the property.