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I've had many customers, clients and friends ask me recently, "What is the market doing?"  And to be totally honest, I wasn't exactly decided.  It seemed that home sellers were still selling and home buyers were still buying...but the general perception seems negative this year, moreso than in the past. 

I started to think about the general trends in the marketplace, seasonality, mortgage rates, home price points...and to the best of my knowledge, I realized, we still aren't that far off from what we always have been...

If we take a moment to think about it, we will realize that we're approaching a holiday market (November - January),  which has always meant that home sales and home purchases wean off slightly, not due to a poor market environment, but due to the amount of money being spent by consumers during this time of year.  Happily, we're seeing HISTORICALLY LOW interest rates, which translates into qualified buyers being VERY lucky to find the home of their dreams right now...and qualified, prepared sellers selling their homes now.  We have to remember to that the "creative" programs that got so many consumers into trouble have been done away with...today's programs are consumer friendly again - Thank Goodness!  Finally, we're seeing realistic price points (not the short term growth that we had jaded our view of the past markets) but realistic prices still creating lucrative capital gains for sellers and buyers...HONESTLY, we're looking at a really good market environment.

Then I started wondering if perhaps I was being too optimistic, being so surrounded by naysayers and negative forecasters.  Everytime I pick up a newspaper or turn on the television, all the press tells us the market is horrible.  So, I decided to look at the statistics, to turn to the National Association of Realtors, the Association that dedicates themselves to studying the trends and analyzing the facts.  Having discovered the truth, I was very pleased with what I found...we call all breath a sigh of relief - It's still a good market:

NAR Puts Housing Market in Perspective: 2007 will be the Fifth Best Year on Record

LAS VEGAS, November 13, 2007 -  What a difference five years makes. That’s the point made by NAR economists and practitioners in today’s Economic Issues and Residential Real Estate Business Trends Forum at the National Association of Realtors® 2007 REALTORS® Conference & Expo. In 2002, home sales set a new record at just over 5.5 million, and three-quarters of metro areas showed price gains over the previous year. At the time, home buyers were confident that the real estate market was strong and healthy. In 2007, existing-home sales are forecast to be about 5.5 million, and two-thirds of metro areas showed price gains last quarter. Both 2002 and 2007 show strong sales, and homes continue to prove a good long-term investment. But this year, public perceptions are different. “In some ways, the extended real estate boom from 2001 to 2005 created unrealistic expectations that housing is a short-term high-yield investment,” said NAR Chief Economist Lawrence Yun. “2007 will be the fifth best year for housing on record. Places like Houston, the Kansas City area, Indianapolis, and the vast middle section of the United States offer affordable prices and continued job growth. On either coast, Seattle and Raleigh, N.C., remain solid. And markets that experienced recent growth declines – like Boston, Denver, and Washington, D.C. – have already shown signs of recovery. In short, all real estate is local – conditions vary greatly from one city to the next.” Yun explained that while the recent rise in foreclosures and delinquencies has dampened consumer confidence in real estate, these problems have been concentrated in the subprime market. “For buyers who qualify for conventional financing, mortgages are available at favorable rates,” said Yun. “Major FHA reform will also help first-time home buyers enter the market and will provide safer alternatives for many subprime buyers. FHA market share for home purchases is expected to triple over the next three years, from an estimated 4 percent in 2007 to an estimated 12 percent in 2009.” Responding to recent questions about the current value of homeownership, Yun said, “Buying a home is not a quick-in, quick-out investment, like buying a stock. Homeownership builds wealth over the long-term.” To illustrate his point, Yun explained that over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield $23,600. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, at $110,300. Taking the long-term perspective, John Tuccillo, former NAR chief economist and currently of John Tuccillo and Associates, reflected on recent changes in the current real estate market and outlined what likely lies ahead for the real estate industry. “The demographics of home buying and selling are shifting significantly, away from baby boomers and toward Generations X and Y,” said Tuccillo. “Baby boomers are still fueling demand for second homes in communities across the country. However, younger generations are emerging as market forces, and their influence will change how real estate practitioners do business.”  Tuccillo explained that members of Generations X and Y focus on the bottom line. Consequently, the four elements of time, stress, convenience and service will influence these younger consumers’ perceptions of value. “Technological mastery will become even more important, moving forward,” said Tuccillo. “Realtors® must learn to integrate new channels of communication into their businesses. As with other industries, real estate professionals must efficiently meet the needs of their clients while providing the world-class customer service to succeed.” The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of residential and commercial real estate industries.

For Immediate Release
PRESS RELEASE 

Contact:    Livia Freitas
                Freitas Realty Group
                (508) 457-0202

Local Agent Earns REALTOR e-PRO^® Certification

November 26, 2007 – LIVIA FREITAS of Freitas Realty Group has successfully completed the REALTOR e-PRO course to become one of a select few real estate professionals to earn the prestigious certification offered through the National Association of REALTORS.^®

The REALTOR e-PRO^Ò certification course is an educational program unlike any other professional certification or designation course available, comprehensive and interactive. It is specifically designed to provide real estate professionals with the technology tools needed to assist consumers in the purchase or sale of a home.

With more than 70% of consumers beginning their real estate research on the Internet, e-PRO certified agents have the experience and expertise to meet the demands of today’s buyer and seller.

“The real estate industry has undergone a fundamental change over the past several years,” said Livia Freitas of Freitas Realty Group. “A majority of consumers are taking the time to conduct their own research prior to contacting an agent. In turn, real estate professionals must be knowledgeable of how technology can assist them in serving the needs of the buying and selling public.”

The exclusive REALTOR e-PRO^Ò certification course is presented entirely online and certifies real estate agents and brokers as Internet professionals. Because of its innovative design, students are able to complete the course at their own pace, when and where they want, via any Internet connection. The course is designed to help REALTORS^Ò stay at the leading edge of technology and identify, evaluate and implement new Internet business models.

Once completed, the e-PRO certified real estate professional joins the ranks of a special community of highly skilled and continuously trained professionals who provide high quality and innovative online-based real estate services. Consumers can identify the e-PRO through the exclusive e-PRO Internet Professional logo.

Both the content and the delivery platform were created by San Diego-based technology company InternetCrusade^®. The course instructs participants in the professional use of e-mail, the development of an interactive Web site, and the use of online research tools. Graduates use the skills they've acquired to provide clients information on properties for sale, local communities, and the local real estate market.

For more information or to obtain technologically advanced assistance in the purchase or sale of your property, please e-mail Livia Freitas at livia@freitasrealty.com or call (508) 457-0202.