Are people still buying homes? You bet they are! So why are news stories painting such a bleak picture?

By
Managing Real Estate Broker with Alta Realty Company, LLC RB 21961

You read it in the news every day, alarmist headlines such as:

"New Home Sales at Half Century Low"

"New Home Sales Data: Wickedly Bad"

"New home sales tumble to record low"

I mean, I could go on and on with examples of the news media "Chicken Little" cries "The Sky is Falling! The Sky is Falling!" But what is the point?

Disney's Chicken Little

We all are drawn to these headlines with a morbid sense of curiosity. Like people who slow to a crawl on the highway to rubberneck at an accident. So why are news stories painting such a bleak picture? Because that sells news.

But the fact of the matter is, as long as we need shelter over our heads people will continue to buy homes. As long as folks have a desire to be independent of someone telling them what they can and can't do with their living environment, they will continue to buy homes.

Right now there are thousands and thousands of everyday folks, out there in the marketplace looking to buy a home. They are out there, I guarantee it. How do I know? Because I get calls every day from some of them. Do they all qualify to buy? Of course not! There are a lot of hard luck and sad stories out there in the big city and I've heard my share of them.

However, for every 5-10 sad stories I hear, there are one or two that have what it takes to achieve their dream of home ownership. All they need is my help and guidance to get there.

I can tell them with certainty in my heart, their dream is obtainable. That they can get an interest rate we could only dream of in the last 30+ years! That current interest rates and home prices have hit that sweet spot in history where housing affordability for the average American is at an incredible high!

Affordability

We are at that point where folks who are renting homes realize they could be owning a home for the same price they are paying in rent.

Home sellers, who are motivated to sell and are willing to price their homes reasonably in relation to the current market conditions have hope as well. Sure, there are investors and other buyers out there who lowball homes in this market. They are around in every market. Some of them have the attitude of "somebody is going to bleed in this transaction". I advise my selling clients to ignore these vultures.

Real estate sales should be a "win - win" transaction. The buyer should be able to get what they want at a "fair price". The seller should be able to sell what they need to sell at a "fair price". My definition of a "fair price" is determined by the overall local / regional marketplace. It is not determined by an individual party to the transaction. What you need or what you owe is irrelevant. The market is the market; it is bigger than you or I.

Bottom line: Real estate sales are taking place every day. We can choose to %&$#@ and moan about the market. Or we can choose to do what it takes to be part of the market. The choice is yours.

Donn

Comments (3)

Richard & Janet OBrian
Home Based Realty - Palmdale, CA
Listing Specialist Palmdale, Lancaster CA

Donn, I must agree with your post buyers are out there in big numbers in our market, yes it is slowing but I not one to panic.

Great post

Mar 24, 2011 06:56 AM
Donn Rasch
Alta Realty Company, LLC - Hawi, HI

Richard & Janet:

Absolutely. My most recent listing that we just put into escrow today had 4 offers on it! And we could have had more if we wanted them. It's all about pricing the property right for the marketplace.

Mar 24, 2011 07:06 AM
Brett Reichel
Homebridge Financial Services - Rancho Cucamonga, CA
MLO 210215

Donn - Thanks for beating the drum on affordability!  I met with a lady last week who is buying the same size/style/location that she rents now for $100 a month less!  I don't think I've ever seen that and I've been in the business since 1979!

Brett

Mar 25, 2011 07:23 AM