Business Week televised a couple of good items about the real estate industry as a whole yesterday. Their video can be seen here: http://feedroom.businessweek.com/index.jsp?fr_story=1164424c0c16afd06ab22f7edc11e1b8de2f5ab5 I've pulled information from other current videos as well.

Some of the bullet points I thought were important are:

Buyers still have an edge in real estate.

Seller's are becoming more flexible and responsive to buyers' terms. It was specifically pointed out that buyer's who low-balling the selling price won't produce the desired result and indicated that 10% below asking was a reasonable price reduction to request.

Seller's can increase their returns by upgrading with environmentally friendly improvements. Shown by the trend in eco-friendly home buyers.

Sellers were directed to post at least 6 high-quality photos (recommended by Realtor.com) because 80% of home buyer's check out listings online before touring in person.

Buyer's too have some work to do like; giving a boost to their credit score, and finding the best deal (budget friendly) on a mortgage.

Mike Mandel, Business Week Economist, talked about the economy as a whole & the real estate market's effect on it. He says there are factors other than the mortgage market that consumers should be keeping an eye on.

Mike pointed out that 30 year fixed rates are actually lower than they were a year ago and that borrower's who have an adjustable rate mortgage, and decent credit will have little trouble re-financing into a fixed rate and will be "sitting pretty".

As a whole the mortgage market is doing just fine, though the sub-prime market is in a bit of trouble. The market will no doubt affect the economy but won't cause a recession according to Mandel. One of the more important aspects to watch closely is business investment which he says have slowed and is at very low levels.

Also the increase in foreclosure activity was localized to areas that didn't have strong real estate markets in the first place.

I've been asked before why I spend so much time looking at economic forecasts, reviews, and ‘expert' opinions (I even subscribe to the Dept. of Labor's CPI summary). My short answer is that; consumers are doing the same thing. Often they're hearing conflicting stories, or worse, stories that just aren't true. Being able to answer their concerns, with an open mind and various points of view, shows a level of professionalism and confidence in the industry in which we practice (regardless of the current state).  Many consumers are on information overload, and become easily confused, & thereby unable to make a decision one-way or the other. Being able to sort it out for them, sets them at ease and facilitates fact based, regret free decision making.

I know...  I said that was my "short answer". You should see the long version.

I'm interested in hearing your comments, especially from the mortgage industry, and agents in the field as well as consumers themselves.