This is part 3 in the series of Realities of Real Estate for 2008.  The points are from my coach Mike Ferry and I have elaborated on each 2 points per post.  We as Realtors can learn a lot from this market, after years of real estate prices soaring to all time highs, and everyone getting a real estate licence we are now in a more "normalized" market.  Prices could not continue to increase, Real Estate is a cyclical business just like the stock market and it has to adjust itself.  This is called "normal", what goes up, must come down, and then we will go through the cycle again in about 7-10 years.  Even in the greater HOUSTON TEXAS MLS, which includes KATY, SUGAR LAND, and several other surrounding cities and suburbs we did not have a steep decline in home prices, but then we did not have a steep increase in home prices either.  We are experiencing longer days on market, and fewer pending sales of homes.  Of course the sub prim market really hit the Houston, Katy, Sugar Land areas more than some of the rest of the country since THE AVERAGE PRICE OF A HOME IN THE Houston MLS IS STILL ONLY $200,000.  We can ll learn, improve and become better Realtors during a market like this.  This market requires more skills and a better trained Realtor, which is also good for the consumer.  People buying and selling homes in this market can expect to end up with a true professional, since all those people who got a real estate licence because it was so "easy" are leaving the Real Estate industry in droves.  We will have a WIN-WIN-WIN in the long run, and people who were getting priced out of the real estate market, can now afford to buy a home. 

More hard facts ... #5. Real Estate companies and offices will continue to close in record numbers ... sell a lot of Real Estate to keep your company in business. #6. The Mortgage Industry is going to make getting a loan more difficult ... It's ok, we must learn how to pre-qualify even stronger. Point #5.  Agents have demanded bigger and bigger shares of the profit, to a point where there is no advantage to owing a Real Estate company.  After all we are all in the business to make a profit (not many Mother Theresa's out there), and if a company is not making a profit they are closing down.  So if you like were you work, you have fair expenses, and a supporting Broker, get out there and sell some homes, other wise you will need to find another place to hang your Real Estate licence.  Liz Carter Point #6.  I had a client come in last night to list her home, and she had an 80/20 ARM loan at 12.5% (I have no ideal why she had not refinanced), but that has been part of our recent problems.  If you could breath you could get a loan.  Don't blame it all on the lender either, we were willing to cash our commission checks on all those loans that should have never been made in the first place.  It is sad to think about someone loosing their home.  Make sure you pre-qualify a buyer for what they truly can affordand make sure you deal with a reputable lender and get them the right mortgages.  It is our responsibility as a REALTOR to do what is BEST FOR OUR CLIENTS.  Liz Carter    The Realities of Real Estate for 2008 in the US, from Liz Carter, Realtor in Katy Texas, part 1, part 2 below.

The Realities of Real Estate for 2008 in the US, part 2. By Liz Carter Realtor Katy Texas

LIZ CARTER, OWNER/BROKER LIZ CARTER & TEAM REALTY, KATY TEXAS, WWW.LIZCARTER.COM