Charlotte Real Estate Update : Downtime.... Time to Consider what is Really Going On....

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Downtime.... Time to Consider what is Really Going On....

By: Lori Bee, NC/SC Owner/BIC
Monday, February 04, 2008 8:56 PM

Well, it's been a while for me too since posting here as well. I guess all of us have a little more time to blog now, huh?

Here locally, our market took a steep 22% drop in December (2007) after a year of increasing inventory, longer days on the market, but also a slight increase in home prices (one of the few bright spots around the country according to Forbes).

Now we have builders cutting back spec building, and one relatively large builder, Beazer, pulling out, after a local media "expose" on their unscrupulous lending practices, which seems to be leading to an increase in foreclosures. More local builders are starting to feel the crunch too.

My question is this: How much of this is due to the media? We all know they forecasted the bubble bursting for a couple of years... And in election year, what if anything can they hope to gain by sinking the foundation of our economy (real estate)?

Now I don't care what your party affiliation is, you have got to realize their is an agenda here folks, and it has me upset. How about you?

Comments

Guest	2008 Presidential Election » Downtime…. Time to Consider what is Really Going On…. said: PingBack from http://independent2008.net/?p=70282 February 4, 2008 8:16 PM
Member Since '04	Phil Anderson said: First, as we know, real estate is "local", and in my area, sales are down and prices are down in most areas. Time on market is up. Many builders are making all sorts of concessions including auctioning properties at near cost. Available mortgage programs have been reduced, certainly for marginally documented borrowers. These are facts in my market (Portland, Oregon, real estate) When the media reports that, I can't blame them. But I don't believe, here, that they started or exaggerated the trend. As I remember the local and national media was WONDERFULLY supportive of the real estate market when it was going gang-busters. Still, the news must sell, so I don't expect them to miss an opportunity anymore than they would expect me to miss one. February 4, 2008 9:05 PM
Member Since '06	Cal Griffin said: We can blame the economy, taxes, the elections, the media, the seed-the soil-the rain, the sun-the season, inflation, recession, the product-these excuses have always been there and always will. We must work smarter and harder. Good Luck! http://www.calgriffin.com February 4, 2008 10:10 PM
Member Since '07	Nate Covington said: Lori, I am not sure who to blame for the issues you are bringing up, other than maybe ourselves(when I say ourselves I don't just mean realtors, I mean everyone who rode the big wave). The larger the wave the larger the trough. Fortunately here in eastern Idaho our wave has only recently taken off, but as usual it will probably only be boogie board size. The one consolation is we don't tend to trough here. The state has been growing every year since 1987, just not at 20% or more(except a couple of the last few years). Occasionally our local media rides the naysayer express, as if only to see if anyone is watching their report. February 4, 2008 10:29 PM
Member Since '07	Nate Covington said: So as Cal says, we should work smarter and harder. Maybe we should not watch the local news to??? February 4, 2008 10:36 PM
Member Since '07	Bill Thompson, REALTOR® said: Lori Bee, It is nice to see you back here! Don't stay away for so long this time. Here in the Dallas, Texas market we were nor hurt as badly as some other areas of the country, but as the daily news carried reports of gloom and doom in the real estate market, thing did start to slow here as well. Buyers became reluctant and expected huge price reductions that sellers are not willing to agree to...So yes, I agree that much of the problem here in Dallas is media driven. I invest in real estate myself, however, and these are great times for investing. I am buying up rental units right now. February 5, 2008 7:15 AM
Member Since '07	Lee Hannibal said: Lori, I to am a little concerned about Charlotte. I agree the media seems to make it out to be all doom. However the last couple of weeks my phone has started to ring more and the prospecting is working. While most are not ready to do anything until the end of March I think the spring and summer here in Charlotte will be a good one! February 5, 2008 9:11 AM
Member Since '07	Candice A Donofrio said: [Nate sez: The larger the wave the larger the trough.] Of course. Real estate, like everything else, is cyclical! An up market is not interminable. Nor a down one, for that matter. Why blame anyone? Why dwell on it at all? NEXT NEXT NEXT. This is gonna be a huge buyer's market. I'm the media so listen up! :) So are all of us. February 5, 2008 10:28 AM
Member Since '07	Candice A Donofrio said: Bill, if you or your partners want AZ rentals on the river, holler. :) February 5, 2008 10:31 AM
Member Since '06	Chantal Gakwaya said: Personally I've never worked in an up market. I started my career during the downturn in the market. So I suppose I only have good things to look forward to. Though it appears that this year is going to be a good year. It's all a learning curve to me. February 5, 2008 10:55 AM
Member Since '03	Gregory Bain said: Unfortunately for me, I have been working as smart I can and as hard as I’m willing. Will someone please hurry up and re-invent the wheel? February 5, 2008 11:39 AM
Member Since '07	Candice A Donofrio said: Hey Greg, was thinking of you yesterday. A momentous day! Coop's Birthday! http://www.youtube.com/watch?v=aknX3Jl3h8A February 5, 2008 12:11 PM
Member Since '06	John Rainville said: Up market? Down market? Normal market? I was told early on that whatever the winds bring "THIS is the Market". Just concentrate on the basics, hone your sale skills, and realize that the market is still moving. I know anyone on any given day can get "down" on the business---but I have never figured out how to profit from that! Work your plan, sometimes the crop needs an extra few weeks of sun or rain to mature---but it almost always does. If you advertise on the media that you believe is bashing our business, step up to the plate and pull your ads---for good. February 5, 2008 6:19 PM
Member Since '07	Lloyd LaTour said: All good replies to this question. I am taking advantage of this slow time to readjust my business plan. Weeding out what is not working and invest into more that is working for me now. Like Candace said real estate is cyclical and I truly believe it. The market will go to another cycle again and we will all be busy but for now I am getting back to the basics. February 6, 2008 9:29 AM
Member Since '03	Howard Arnoff said: Lori, one month does not a trend make, Charlotte real estate has done very well compared to most other places in the country and because of job growth and the overall wonderful ambiance of the area, should continue to do well in the future. February 6, 2008 6:02 PM
Member Since '03	Lori Bee, NC/SC Owner/BIC said: While I agree that the market is cyclical and that we must work harder, there is definitely a "backlash" of sorts against the real estate and building industry. It always seems to be more prevalent in an election year, as candidates here the crys of "too much traffic, too much construction, what are you going to do about it if we elect you?" We have enjoyed growth and a great economy here in Charlotte. Heck, that's the reason why I moved here in 1999 from West Virginia. While growing pains are hard, dying pains (which I experienced there) are much worse, but that's hard to convince the commuters who are sitting in traffic for hours a day, and for parents whose children are in trailers at schools. So campaigners take our industry to task, when in my humble opinion, the questions should be asked of our elected officials, "how are you spending all the tax money I make for this state/county/city?" And this year on top of all that, they really have bashed our industry for creating this recession (yes I have heard that it is our fault along with lenders & banks),by over-inflating home values over the last several years (and believe it or not, we had a VERY modest appreciation of 3-5% per year, unitl last years 8% increase). Now those prices are declining and sales are declining too, and I sense almost a feeling of gloating by the media. I probably just turn off the news too (I often do), but it makes me more than a bit mad when I consider how hard I work, and how much I do for my community. On this note, these reasons above, along with many others, are why I am an avid supporter of RPAC. I do want my industry standing up for our rights in our government. I hope each of you are too! February 20, 2008 10:39 AM
Member Since '03	Lori Bee, NC/SC Owner/BIC said: And the trend continues downward here, and I personally think many builders and agents are scared that the spring market will not bloom. Especially with banks now going belly up , and this is the #2 banking center in the country. Now I certainly do not want to be the doomsday person - it's NOT THAT BAD, BUT it is bad folks. Meanwhile, the Charlotte HBA is focusing on last years statistics. Check out their new site at : http://www.CharlotteBetweenTheLines.com I actually highly applaude them for their efforts, but those of us here know how bad the first quarter of 2008 has been so far. So last years statistics, I predict will fade into history, as we join the rest of the country in this recession. I just hope we will be one of the first markets to bounce back, as we were one of the last ones to join in. There is no doubt that many still want to move here, but until they can sell their homes elsewhere, we are all stuck in the same boat. And yes, I do also predict, that towards the end of 2008, when it becomes a little more clear what's going to happen in the presidential election, the economy and the market will pick up, as the media lays off. It's a matter of looking at history and having seen it before. I hope we can all hang in there till then! March 20, 2008 4:52 AM