Gloom and Doom? Don't Believe It!

By
Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

Market Down SlideUp Down ThumbsYou can't get away from them – the "experts" who are eager to declare the worst. Yesterday's Baltimore Sun included this charming statement from an economist:  "The existing-homes market is now in free-fall." But I also saw an article that appeared in the online Ventura County Star in late September, and it has one of the best discussions I've seen of the immense gap between the stories of real estate market meltdown that seem to be everywhere, and the reality you see when you step back a bit and take a calm look.

The article talks about what they are seeing in Ventura County which is in Southern California along the coast between Santa Barbara County and Los Angeles County. But much of what is true there is true elsewhere in the country, including my area of Maryland.

The gist of it can be summed up in a paraphrasing of Mark Twain's famous quip:  "Don't worry, reports of the industry's impending doom are highly exaggerated. Buyers are still buying and sellers are still selling."

Market PanicSure, the market isn’t what it was a few years ago, but there are many in the real estate business who believe the market was due for a correction, just as the stock market often drops when Wall Street believes that stocks are overvalued. The thing is, there are many positives in the market now. Mortgages are still available at historically low rates, and the economy is sound. There are still special programs for first-time buyers as well as safe and creative financing for other buyers.

Bedtime StoryLike averages (which we know are meaningless!), headlines tell only a small part of any story. Certainly getting a good price for your home in a sale is important, or getting a great deal if you are buying. As the article points out, "People need to look at their own housing needs and not listen to others. You don't buy a home to make money, you do it as a place to raise your family, to put down roots, to feel secure."

Changing LeafHousing markets go through cycles. The down markets follow up markets which follow down markets. People who have been in the industry long enough recognize they are as natural as the seasons. And the real estate professionals who have built their careers on service and value will find the ups just as exciting as everyone else, and the downs not nearly so deep.

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Rainmaker
266,287
Dora & Vincent Kwok
HomeSmart Real Estate - Chandler, AZ
CNE - Chandler, Arizona Real Estate

Every market is composed of two markets....one market with houses priced well and in great condition and the other market is the other homes.  Only homes from the first market sell.
Move your listings into the first market

 

Oct 04, 2007 03:27 PM #19
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome
Hi All, I will back tomorrow to comment. Thanks for the featured post and thank you for all the comments. The real quote of Mark Twain is "The reports of my death have been greatly exaggerated."

Oct 04, 2007 03:43 PM #20
Rainmaker
325,871
Esko Kiuru
Bethesda, MD

Margaret,

Like that Mark Twain's quip. Anyway, the market was due a correction in many over-heated parts of the country and we are getting it now. I'm not so sure about free-falling real estate prices in the resale sector as stated by that economist. Looks more like soft to me. At least thus far. 

 

Oct 04, 2007 05:10 PM #21
Rainmaker
655,832
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
The market always changes. I remember when we were selling homes and the interest was 18%. That changed. And this will as well.
Oct 04, 2007 05:39 PM #22
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Andrew, Thanks for being the first to comment... Keep staying busy and .. focus on doing business right, based on the right things. .. 

Linda, Great attitude...too busy listing and selling house to "listen" to the news. 

Bruce, Your comments are appreciated. 

Lenn, Thanks for your comments. As a successful buyer's agent, you see this reluctance a lot.

Jeff, You always have the right thing to say.."Thankfully, many I have talked to do not rely on the media headlines nor are they making decision based on them. Those that do are probably not really serious about buying or selling anyhow."

Chris and Maria, Hope your market stays strong. Now let's tell everyone we know about this good market.

Susan, This is the sad part...Qualified buyers are being scared away.

Dan and Brandon, Your comments are appreciated.

Pat ",... buying a home is what we do to provide shelter and pleasure in our lives and for our families.  We have to live somewhere.."

Pat,Pattie and Roy, These headlines sell more papers. 

Joey, Here's to the changing seasons.

Christina, Good point to remember

Missy, Hope you didn't mind my changinge the  real quote of Mark Twain  "The reports of my death have been greatly exaggerated."

Chris " I think the media contributed to the inflation and now they are doing their best to contribute to the deflation."

Cris, It hard not to read the headlines these days.

Jason, Thanks for the comment.

Dora, Here's to all our houses being in the first market

Esko, Glad you like that Mark Twain "quip"

Bob and Carolin, Thanks for stopping by. The market always changes.

 

Oct 05, 2007 02:24 PM #23
Rainer
96,539
Karen Villa Schweinfurth
RE/MAX Northwest Realtors, Inc. 425-308-3669 - Everett, WA
ABR, CRS, SRES, CyberStar
So true, Margaret. That's why I've been working with local newspapers as president of my board of realtors, telling them the "local" story: We have a strong economy, unemployment is at 1% and we have ONLY four months worth of listing inventory. We are in a great market. I've done 12 op-ed visits in the past month.
Oct 06, 2007 07:12 AM #24
Rainer
120,738
Ronald Gillis
Southwest Florida Notaries (Mortgage Notary Signing Agent) - Port Charlotte, FL
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY

I wouldn't say it is all gloom & doom, but the market is down - which it always cycles.  BUT, it IS a BUYERS market, for those that have the financial ability to buy, they SHOULD BUY!!!  Some are still buying!!!

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Oct 06, 2007 08:58 AM #25
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Karen, Your board is so fortunate to have you as president! You are making a difference.

Ronald, Thanks for stopping by. Yes buyers are still buying and sellers are still selling.

Oct 06, 2007 12:55 PM #26
Rainmaker
888,475
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT
Margaret, I haven't had a problem selling most of my listings this year.  In fact, I wish I had more inventory!  I have several buyers right now and can't find the right properties for them, so I can assure you we are not overflowing with inventory in my market area.  It's a two-tiered market in my area with sellers who have to sell right away lowering their prices and those who don't remaining firm in their prices.  For those who refuse to acknowledge the reality that this is a buyer's market, their homes may sit for a long time.  Pricing properties right is critical at this time.  I've recently sold two properties at full list price.  My clients took my recommendation on pricing and we held out until we got the price (it took a week on one property and a month on the other).
Oct 06, 2007 04:45 PM #27
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Gail, Sounds like you have a good handle on your market and are doing all the right things. You have been very "lucky "in the business. aka The harder you work..the luckier you get.

Oct 07, 2007 12:18 AM #28
Rainer
304,164
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC

Hi Margaret,
Thank you for this post and you are so right.  The media has put a scare in our clients and we must undo the damage before they will be comfortable with selling or buying right now.  Educate, educate!

 

Oct 14, 2007 01:00 PM #29
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Cynthia, That is one of our main jobs to always educate ourselves and our clients. Thanks for stopping by.

 

Oct 14, 2007 01:38 PM #30
Rainer
72,472
Kristin Small
RE/MAX Southern Shores - Myrtle Beach, SC
REALTOR -GRI, Myrtle Beach Real Estate
Margaret,
So true..great post.  Even though it's not like it was a couple of years ago, it's still not as bad as the national media makes it sound. 
Oct 19, 2007 04:15 AM #31
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

David and Kristin, Thank you! Just had closing today and another on Monday. Writing a contract and one is coming in. Not a bad market for me.

 

Oct 19, 2007 08:26 AM #32
Rainer
72,472
Kristin Small
RE/MAX Southern Shores - Myrtle Beach, SC
REALTOR -GRI, Myrtle Beach Real Estate
That's great Margaret!  Also, we wanted to let you know that we decided on "FOR BIG RESULTS, CALL SMALL!!  Thanks again for taking the time to talk to us.  We REALLY appreciate it. 
Oct 19, 2007 08:49 AM #33
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

David and Kristin, I like  "FOR BIG RESULTS, CALL SMALL!! 

Wishing you much continued success! You are welcome.

Oct 19, 2007 08:57 AM #34
Rainmaker
316,080
Joeann Fossland
Advantage Solutions Group - Tucson, AZ
Master Certified Coach to Motivated Agents
Great article! The Tucson paper on the front page of the Sunday ran a headline that said,"Now, is the time for Buyers to buy!"  YIPPEEE   It's about time they started seeing the upside of the market!
Hugs, Joeann
Oct 22, 2007 10:31 AM #35
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Thanks Joeann.  Were your ears burning today? Had  a wonderful lunch with Peg and  your name came up. We both adore you!

Spoke about this being a great time to buy just yesterday when I was a guest on the radio show, ALL ABOUT REAL ESTATE. How is the youngest blogger doing?

Oct 22, 2007 11:39 AM #36
Rainer
63,191
Jasen Edwards
Creator, Good Selling Formula™ - Austin, TX
We just talked about this last night didn't we?!  Well, you and I can spread this message to anyone who will listen.  No matter the market conditions, success is really just an individual choice isn't it?  That's one reason I don't read/watch/listen to the news.  Okay, now I'm going to chose to go prospect for an hour!  Love ya!
Oct 25, 2007 03:10 AM #37
Ambassador
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Jason, Enjoyed talking with you last night.  No matter the market conditions, success is really just an individual choice isn't it?  This is especially true in a market where news is always talking gloom and doom.

Good luck with your prospecting. Thanks again for introducing me to Linda Scanlan.

 

Oct 25, 2007 05:14 AM #38
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