My parents are still in the same house after 47 years and they would still be in the first one had it not burn down in 1960.  In those days, my parents paid less than $4,200 for a two story 4 bedrooms - 2 baths, a basement and a separate one car garage.  My dad said that the Sale and Purchase Contract then consisted of only a  $50 cash deposit with a receipt scribbled on a rippled piece of paper and a handshake.  Those were the days when a man's word and his reputation meant something.

Throughout my young life I have been groomed to believe that one day I will fulfill the "American Dream": get married, buy a house, raise a family and call that house "my home."

Well, that all changed since the real estate boom of the late 1990.  Because the stock market became unstable and the "dot com" industry snared so many and unexperienced adventurous investors, a rarely low mortgage interest rate swept the nation and buying real estate became the new way out to make short-term enormous fast bucks.  The Buyers engaged in buying frenzy as though the first property they saw was the last property for sale in America. The sellers, on the other hand, became arrogant and pretty much pulled numbers out of their hat and got what they wanted. 

Along with that, there was an equal prosperity in the home PC and fast speed Internet.   Entering the new Millennium, about 70% of North American homes had a computer hooked on the Internet.  In 2007 over 85% of homes not only have one computer but they also have a second one for the kids. Consequently, consumers used that new convenient tool to learn about anything (that's before they become hooked on porn sites.) 

The late real estate boom spoiled everyone, even the blue collar Jane and Joe, and the Internet enabled all to research their own selling or buying comps by easily accessing property sites to study their local area or explore remote areas with the aid of National venues such as Realtor.com.   I

n 2006, the proverbial "real estate market bubble" punctured and it has been plummeting since. 

The Sellers are aware of that drastic decline due to the media and the Internet news constantly reminding them of the harsh real estate market but they refuse to admit it just yet.  They still pull numbers out of their hat in hopes that there is still someone out there who will actually love their property because "my property is the nicest one in the neighborhood and if they want my house, they will gladly pay what I want for it."

The Buyers are also aware of the declining market but they don't need much persuasion to act passively on it.  Besides, the buying hype is over and buyers have lost their enthousiasm.  Now the buyers are the birds of prey armed with patience and vengance.

The residential real estate industry has reached a new dimmension:  buying or selling a home has evolved to a cold and callous business.  Sellers only hope to make a huge profit while buyers no longer buy a "home" to put his/her heart in" - they buy an investment where they will sleep in.

I think Realtors have to adapt to this new consumer pshyche. Our profession is leading us to become "real estate investment advisors, legal conselors (although we can't practice law, real estate today is all about law) and transaction facilitators."

By-the-way, can someone tell me what is the new "American Dream" - WINNING THE LOTO perhaps?

John Bourassa, Realtor

Crest Realty Group, Inc.