A Reality Check

A Time for a Reality Check

Times are changing and moving faster than I’ve seen in my 32 year career as a Realtor. There is an ebb and flow to the real estate market. It almost has its own pulse and mood swings. To be sure, one must be an observer to understand the market’s character and depth of soul.

I know this sounds like you and me. It sounds like the real estate market has a body and soul. It sounds like someone you might know. If you think about it long enough, any market is made up of one main ingredient…us!

To understand real estate is to understand the human psyche, because the market is made up of people who collectively move prices, commodities, and in the end the fears, hopes and desires of those who enter into it. If fear and uncertainty are dominant, prices may move quickly in either direction. When times are more predictable, prices stay more stable. Where is the real estate market today, and where is it headed?

First it pays to listen and listen with both ears! Listen to your neighbors, friends and family when talking about purchasing their first home, selling their long time home, or their plans to hold off or move forward. Listen to the news media and get a sense of the pundit’s predictions. Most importantly, listen to your gut, your inner knowing of what is reality and what is mere gossip. So much of what we listen to is plain hyperbole based on either fear or lack of factual knowledge. To know the market truly as it truly is, talk to the folks who live it every day. Talk to Realtors, mortgage lenders, senior community marketing directors, and especially those who have just sold their home or purchased a property. To have a conversation with someone directly involved and touched by the real estate market can give you true insight as to where the market is and where it is going.

From my perspective, homes are selling and never stopped selling. Prices have changed, but in our area, they have held up well compared to most areas of the country. The Midwest never moved up by the 20%-50% gains seen in the Sun Belt areas. Our area has always moved in much smaller increments, so when the economy entered into the recession, our prices fell by only 10%-15% in most areas. Yes, areas of our city have been hit a bit harder due to job loss demographics, but in the end we are relatively stable compared to states such as Arizona, Nevada, Florida and California.

We are seeing young first time buyers take advantage of the $8,000 tax credit for first time buyers, and second time buyers receiving a credit of $6,500. Purchasers are seeing the opportunity of lower prices, historically low interest rates, and the credit I just mentioned. Home sellers are having the same success as in the past, if they listen to the market and buyer’s expectations. That means listening to the Realtors who will guide you by helping to prepare your home for sale and pricing properly. Those who do not take the advice of professionals will most often experience frustration and lack of success in selling their home. This has not changed in my 32 years! So in the end, if one listens to those who have knowledge based on fact and reality, a successful outcome will be the result. Those who choose to listen to those who have an opinion based on gossip and fear will pull their wings in and remain in situations that may not be healthy both mentally and physically.

In the end, remembering that “we the people” are the real estate market, will help put this market confusion into perspective. It is our fears, our desire to move away from uncertainty that can lead to the unhappy outcomes. But those who listen to the experts get the real facts, and talk to those who have recently participated in the market will be the same folks who will be later labeled lucky! Luck is when preparedness meets opportunity. There is much opportunity today but one just needs to be prepared for that opportunity.

Good “luck” to all of you!!