[Larry sez: Have you noticed that agent’s across the country do not share the same opinion the media does?]

Nor should they. Media sensationalizes; bad news sells soap. If it bleeds it leads.

Great show Larry! There is a lot to be said in that brick and mortar and personalized service is the key for home owners to get their homes sold and the job done.  It is good to hear that another agent is interested in educating both sellers and the home buyers on how this works, the competition, the steps for various types of transactions (short sales, bank owned, etc).  What a great opportunity for you on the radio - wish I had that resource here!  

The public is so mis-informed on how the business works, and with good reason as in they do this rarely, 2-3 times in their lives.  It is fantastic that you are providing a resource for those that are interested in being educated through their process.  

It is a tough market, but certainly not the end of the world, and for buyers, a terrific time. And the part time, "sometimes"  and discount agents are not getting the results - this is a wonderful opportunity for those of us who are working hard to get the job done right today. The public is seeing that as listings expire and perfectly good houses go unsold. And noticing the agents moving those "unsellable" homes in 30, 60, 90 days.  Like you in your market, I am fortunate and thankful to be doing well in mine with these same kinds of successes.

I hope that the public is listening to you to ask that agent sitting in front of them for credibility, track record, education, references and realize that they deserve their biggest asset to be trusted to a real professional and not a hobbyist working for some mad money!  Thanks!!

Larry,

Trifecta from the New York Times:

"Markets and Dollar Sinks As Slowdown Fear Grows"

Thursday,November 8

It is very unusual for the stock market or any other market to achieve headline status in a major metropolitan newspaper, especially the NYT. This headline hits the trifecta.

It says that the stock market is sinking as is the US dollar. It attributes this in part to the fact that oil prices are at record highs (unadjusted for inflation) and that the housing market is in trouble (I guess that's four, not just three markets covered in one headline!)

I think this means that the stock market is at a low as is the dollar. Moreover, it suggests that oil prices are near the end of their run up and that the housing market as well and the financial sector has seen the worst.

The housing sector has been the flash point for those looking for economic collapse, and certainly the reports from the housing markets have been poor (to be generous). But unlike stocks, not every piece of property is created equal.

A couple of examples: my relatives have been in their house for over 15 years, making their monthly payments religiously from the start, never taking out equity (the idea is not to have debt!) and while their house has appreciated, they are living roughly the same lifestyle that they have for that 15 year period of time. To them, this housing “thing” is much ado about nothing, as they will continue to make their payments and little will change in their lives.

My neighbor of 10 years has pulled out every ounce of equity, as his house had more than doubled in value – did a remodel on the house, bought a second home in Florida and has a couple of new cars. Then the floating rates begin to float and he is finding out that he can’t get out from under the place  and is struggling to make his monthly payments, now that they have increased by more than 25%. For him, this real estate and sub-prime “thing” is very real and very costly to his net worth.

Finally, we have a couple of houses up for sale on our block – one sold a week ago, while the other still sits. Why was one sold and the other remains on the market? There are a variety of reasons too numerous to go into in a short market update letter. Suffice it to say that real estate is not like buying 100 shares of Cisco in early 2000 and watching it drop 80% - everyone loses the same amount, very unlike the real estate market.

The point – the real estate market is not like the stock market bubble and will take a much longer time to work out – my best guess is an initial bottom is likely in 2009 and we won’t see a meaningful turn higher in overall real estate prices until sometime 2011-2012.