Bad Market...What Bad Market?

By
Real Estate Agent with Realty Executives Liberty

The media is expressing the huge decline in the real estate market on a daily basis now. Is it really that bad out there? I agree that things have slowed down, but to say that it is "bad" seems exaggerated in my point of view.  In my area (Southeast Georgia) it is quite the contrary. Some members of my Board are even saying that business is better this year than last year.  Personally, my business is doing well. I do have my share of listings that seem to be taking longer that "usual" to sell, but they eventually sell. I think that because the market was "booming" a few years ago, when things get "normal" the "bad market" card is dealt quicker than we can say "SOLD".

Then again, I am not an expert in every state/area in the country.  Maybe it is just Southeast Georgia that is still doing well.  Is there really a "bad" market out there or are things just slower than the "boom" we were getting so comfortable with? 

I mean no offense/disrespect to any reporters out there (cause I know you are just doing your job) when I say that the media sometimes tend to take a small negative and focus on it like a child with a magnifying glass on poor defenseless ants.  I would be interested to hear what my fellow professionals in the industry have to say, so that I can be better informed when confronted by concerned consumers about a "national real estate crisis".

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Rainer
141,876
Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Jul 29, 2008 05:07 PM #1
Rainmaker
254,432
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

Janie,  Here is California real estate values have really dropped and a lot of homeowners and investors have lost a lot of equity/money.  All levels of government are having trouble with their budgets.  This is the definition of a bad market here.  However, real estate is local so not every place is seeing the downturn at that same rate.

Jul 29, 2008 05:51 PM #2
Rainmaker
114,574
Peg Gilliland
Charlottesville Solutions - Charlottesville, VA
Broker, GRI, CDPE

I see that you are new to Active Rain and I just wanted to welcome you. I hope that you enjoy it as much as I do and that you find it a great resource.

Jul 30, 2008 01:45 AM #3
Rainmaker
134,234
Rick Sergison
EXP Realty of Canada Inc., Brokerage - Pickering, ON
Durham Region Real Estate Blog

I just stopped by to welcome you to Active Rain. I hope that you find it a great benefit to your business and that you see the value that I have also found here. I am from Charlottesville Virginia and using Active Rain has really increased my business!

My main blog on Active Rain is here: Charlottesville Real Estate Blog, not the link at the bottom of this post. 

I hope you will look into the many groups as there are some great group both local and broad based,.... 

enjoy!

Jul 30, 2008 08:51 AM #4
Rainer
14,545
Janie Diggs
Realty Executives Liberty - Hinesville, GA
ABR, ASR, GRI

Thanks for the warm welcome guys - I am already getting some great results/phone calls. I am really interested to know about different markets. Thanks you Robert for filling me in about California--that is real interesting to hear, it is good to know that the news we watch is not a complete exaggeration; however, it is also sad to see that people are really hurting.  I wonder if that Foreclosure Relief Bill they are talking about will really help some of those families.

Jul 30, 2008 12:01 PM #5
Rainer
4,797
Jim Lally
Osceola Mortgage - Ocala, FL

Janie

You are aboslute correct.It's a great market depending on location and perception. I am in North Central Florida and while w ehave seen some big declines in values that is only bad on sellers or those wanting to refinance. If however, you are a buyer WHAT A GREAT OPPORTUNITY. If you are a REALTOR a Mortgage Broker, what an opportunity.

The press does what they do for instance in our area YTD sales are off by 19% BUT since January of this year monthly sales off MLS are UP 82%.

Thats great it means the volume is coming back as prices have gone down. They dont print that for any number of reasons and thats great because that where WE come in. WE tell the story to the public. We have the facts not the conversation, not the editorial BUT facts.

Become your own public realtions machine.

Welcome to Active Rain. Thanks for your comments on my blog earlier, I wrote you some other comments there as well. All the best, Jim

Jul 30, 2008 02:36 PM #6
Rainer
14,545
Janie Diggs
Realty Executives Liberty - Hinesville, GA
ABR, ASR, GRI

Thanks Jim,

It is good to hear some positives in the market. In reference to your statement about the media and how their lack of ALL the information is good for us so the consumer can ask us: I never thought of it that way.  That is a great perception. Thanks so much!

Jul 31, 2008 02:07 PM #7
Rainer
7,105
Peter Hackett
HutHub Inc. - Oakland, CA
The National Real Estate Network, HutHub.com

Welcome to Activerain.....The housing market is BAD in many heavily populated urban areas....it is OK or even GOOD in medium to light density suburban & rural markets, depending on location, of course.

The reason is supply & demand:  in heavily populated urban areas (like here in Northern California), homevalues skyrocketed during the boom, people bought these really expensive homes with really exotic loan products (ARMs, Neg-Ams, etc.) and developers started building more & more new homes because literally EVERYONE & their second cousin were qualifying to buy homes........

Fast forward 2 years:  Everyone that bought a really expensive house with an ARM or Neg-Am loan product got payment shock when their loan payment readjusted, they couldn't afford their housing payment, and they had to give up their house at a HUGE loss (foreclosure, shortsale, REO, etc.).....this was a crushing blow to the banks, and once bitten twice shy, so now these banks will barely give out loans to even well-qualified buyers.

Add to that the fact that all those NEW homes that developers thought were going to sell are now just sitting there, creating a huge inventory of NEW homes along with the huge inventory of OLD homes, while there is now NOBODY left to qualify for these increasingly hard-to-get home loans = MORE SUPPLY, LESS DEMAND

That, of course, equals a BAD Real Estate Market in many heavily populated Urban areas.

The less populated suburban & rural areas never experienced the same type of incredible growth in old-home foreclosures & new home development, thus their SUPPLY never really increased beyond what their local market could handle, thus SUPPLY = DEMAND in those areas.....which is a good thing, because that means they have a stable, or at least a well-paced growing market.

Sorry to sound like the nerd who paid WAY to much attention in economics class!

Jul 31, 2008 03:06 PM #8
Ambassador
891,536
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

The only way to tell what the market is doing is to look at the numbers.  What are the numbers for your MLS?  Your numbers don't matter, nor do those of any other individual agent.  But, many that are preaching the "All Real Estate is Local" angle are NOT using objective numbers. 

Some markets are good... some are not so much.  The important part is to accurately asses reality, and then tell consumers the truth.

Aug 02, 2008 07:58 AM #9
Rainer
22,161
Jack Climer
Jack Climer Realty, LLC - Springfield, MO

Our market is holding its own. We have more buyers than product that fits the buyers needs. We could sell lease purchase agreement all day long if we had homes to lease.................Good Luck......

Aug 02, 2008 08:07 AM #10
Rainer
3,663
William "Billy" Strickland
Realty Executives Liberty - Hinesville, GA

Nice blog.. good luck with all your future endeavors..

your bro.. :)

Aug 05, 2008 07:15 AM #11
Rainer
3,663
William "Billy" Strickland
Realty Executives Liberty - Hinesville, GA

Look.. heres another comment.. woo hoo..

Aug 06, 2008 03:46 AM #12
Rainmaker
20,986
Solomon Greene
Atlanta Partners - Duluth, GA
Metro Atlanta Real Estate and Home Buying Programs

Welcome from Atlanta too!

For what it is worth, here's my opinion.  The market is what it is.  Our challenge and opportunity as agents is to position our businesses to thrive by serving our clients in the current climate, which happens to be accurately reflected in the media as a buyer's market at this time.  I do, however, look forward to the day when they realize the contribution they are making to the industry by calling it "bad."  We'd all be much better off if they would simply call it the correction that it is and the opportunity it represents for home buyers.

Aug 09, 2008 11:37 AM #13
Rainer
26,401
Alison Scott
Re/Max Central - Suwanee, GA
Commercial and residential real estate sales

The media have been trying to drag down the market for a few years now, they had been talking about the "Bubble Bursting" when we were experiencing strong sales.  The market will adjust and how long that will take remains to be seen. It is good to hear that you are experiencing a good year in tough times. I think Atlanta will be one of the markets to pick up a little quicker than some of the other parts of the country.

Welcome to AR....I love it.

Aug 15, 2008 01:46 AM #14
Rainer
45,064
Jennifer Hillegas
Sign Your Deed Realty - Rome, GA
Every Seller Does It!

Janie,

I think that recently the media's job is to spread doom and gloom regarding everything from real estate to toilet paper and how disposing it makes the world a bad plcae to live........We are in Northwest GA and our area is still growing yes I did type growing and it is amazing because our average price range in Rome, GA has gone up by about 5% yes I typed 5%!!!  We have a really great medical and educational community and people are always relocating, getting married, getting divorced, going to be with Jesus, upsizing, down sizing, beginning.......the beauty is that everything is changing and besides the "market" is between your ears and you seem to have a GREAT MARKET "between your ears"!!!! Stay positive!

Sep 13, 2008 01:08 PM #15
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Rainer
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Janie Diggs

ABR, ASR, GRI
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