With all the talk about a housing "bubble" with falling home sales and home values and now the subprime debacle, some of us may be losing sight of the abundant opportunities that this offers for realtors and buyers, alike. In fact these opportunities extend to seller, as well, as home prices have risen as much as 100% or more over the past 5 or 6 years and with most owners and investors leveraged to the max, profit when selling should be much more than 100%; could even be as much as 1000% in some cases, even with prices dropping a bit! Take the case of a $10,000 investment in a $100,000 home in 2002. This home should have appreciated to as much as $200,000 in the five years since its purchase, with nearly tax-free payments and a home to live in over that time, or rental income to cover those payment if you are an investor. Now when you go to sell it, you will reap $190,000 profit (less the costs of the sale, perhaps $12,000 to $15,000) for a net profit of, perhaps, $175,000, which is over 1,700% on that $10,000 investment for today's seller! Certainly not something to cry over! Of course, the real problem is for those who bought a year or two ago, at the height of the appreciation, with an adjustable rate mortgage and not enough increase in household income to carry the increase in mortgage payment. One does have to have some carrying ability at times to make real estate work as an investment, but one should know that going in. Anyway, my point is that we should not lose heart with the onslaught of headlines and we should advise our clients likewise! The sky is not falling... just a few flakes of snow in the air! Aloha, Bob Farrell (RA) RSPS, TRC, MS, RECS. bob.farrell@hawaiimoves.com http://www.WaikikiBob.com