The national news media, persuaded by a small number of outspoken and  misinformed analysts, have painted a very grim picture of the current real estate market, even though the facts tell a very different story.  Faced with the conundrum of consumers "sitting on the home-buying fence" in the midst of solid national economic indicators, here are some of the facts behind this baffling consumer behavior.

Sub-Prime Problems Hurt - But Solid Fundamentals Help!  Previous national sales down-turns of the past 30 years were prompted and accelerated by wide-ranging economic problems or true recessions.  In contrast, our current economic indicators and fundamentals remain solid, with the GDP (Gross Domestic Product) expected to grow by a healthy 2% and is supported by an increase of 2 million job over the past 2 years AND the continuation of low mortgage interest rates.  Existing home sales will exceed 5.5 million which is very close to the level achieved in the record-setting year of 2002. Meanwhile, home prices are remain near record highs in many areas.  Some of the cooling in the market can be attributed to risky subprime loans and a tightening in mortgage practices and laws - while sorely needed - is making it more difficult for some would-be buyers to close on their new home purchase in a timely manner.

More Good News!  With all of these difficulties, there is actually less of an impact that originally feared because of the increased attractiveness of the newly revamped federally backed FHA mortgage programs.  Recent changes have removed many of the old FHA restrictions and requirements.

REALTORS® Take on Capitol Hill to Help Consumers!  REALTORS® are pushing for initiatives in Congress to make the FHA more competitive in markets throughout the country and a tax law change that would make it easier for troubled borrowers to refinance into more appropriate financing.  They are also pushing to raise the Fannie Mae and Freddie Mac conforming loan limits, which are currently too low to help buyers in many high-cost markets like California, Arizona, and Florida.

The facts all point to one conclusion: the real estate market is alive and kicking.  This is a great time to buy and there are plenty of opportunities for consumers and investors.