There seems to be a big difference between reality and perception in the real estate business.
While looking at the numbers for Oahu (Honolulu County) for May 2008 something jumped off the page at me. The median price for condos and townhouses hit a record all time high. The median price for single family homes was just a hair short of the record high.
How many times have I heard buyers are waiting for the market to bottom? They may be waiting a long time here. The market has gone up not down.
OUR MARKET IS NOT CRASHING AND BURING!
Prices have held and even climbed a little. Interest rates have remained low. Sales volume is down; but the inventory has gone down proportionately in many of the areas. There are a few communities that have seen drops in price due to supply and demand issues created by new development competing with resale homes. Those areas are the exception, not the rule. Many areas have remained steady like Mililani, and some have seen increases.
I am constantly hearing from struggling agents how the market is dropping and how bad it is out there. I can bet very few of them ever looked at the actual numbers. I run the numbers every month in the communities I service.
Recently an agent called me three times to insist one of my listings was priced too high, before showing it to her clients. She had not seen the home and not looked at the numbers. I recommended she do both before drawing an opinion and before giving advice to her clients. She kept insisting the market was dropping fast. I asked her where she got her numbers from. Her response was that it was common knowledge. I let her know that was not what I was seeing and the numbers were not reflecting that.
Two sources of some agents gloom and doom attitude is:
- Constant negative reports in the news media.
- A slow down of their own business.
Sales volume is down. Multitudes of part time and hobbyist agents are struggling. Their lack of marketing and presence in the market place is just not cutting it. Clients know the market is changing and are looking for a professional to guide them through it. Many of full time professionals I know are doing quite well. The last two months my business has been the busiest I have ever seen. I am hoping to finish 2008 with my biggest year yet.
So what does this all mean?
For agents:
- Know your market, know your numbers.
- Increase your marketing. You need to have name recognition and you need to gain market share when sales volume is down.
- Do not skimp on education. Clients want the highest trained professionals they can find.
- Have a business plan; success does not come by accident.
- Keep a positive attitude; no one wants to work with a defeated agent.
For buyers and sellers:
- Use a top professional who knows the market and knows the proper strategies.
- Interview the agent before committing to them. If you are listing a home, have them present their marketing plan for your home before signing anything.
- Real estate is local. Be sure you know the real facts for your market and the particular neighborhood you are looking at.
- Buying or selling a home is a team effort. Be sure you know your role and the agent's role in the process.
- If you are a buyer, ask the agent for the names of a few top loan officers who work your community.
With so much irresponsible press, our role as industry professionals includes keeping the public informed as to the actual market conditions in your communities.
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