Time to get serious... In yet another timely post by Poinciana's finest, Broker Bryant clues us in to what some of his readers are saying regarding NAR's "It's a great time to buy" campaign. If you haven't read his blog click on over and have a gander. TLW has issued a challenge of sorts to counter NAR"s sunshine-pushing position with a dose of reality. Well, here it is.
While I realize the importance of a positive attitude I believe it's critical to not let hype override reality. Take NAR's campaign, for example. It may very well be a good time for some people in some markets to buy. In other markets, perhaps not so much. Beyond and paramount to local market performance there are the individual sellers and buyers circumstances to consider.
The problem with such blanket generalizations such as “It’s a great time to buy” is they reduce us in the eyes of the public from consummate professionals to simply market cheerleaders. That's not our role. Or role is to provide timely, accurate and pertinent information, whether good news or not so good news, so sellers and buyers can make informed decisions regarding the purchase and sale of real estate.
Consumers are not uneducated. They have access to the same general market information we do. They read the same newspapers, they listen to the same radio, they read the same internet news sites. Their power of reasoning and common sense is equal to ours. They have fears and concerns we might be able to allay but we should never, ever stoop to espousing propaganda simply to stimulate the market or motivate sellers and buyers.
Rather than pick up our pom-poms head to the field to chant BUY, BUY, BUY perhaps we should honestly evaluate our individual markets and tailor any recommendations to those individual sellers and buyers needs. Where market conditions are experiencing a downturn, roll with it. Be honest with consumers about what the market is truly doing and the risks involved with their decisions. Anything less than a no holes barred honest assessment is doing our clients a disservice. We also run the risk of damaging them financially, which is something the professionals I know would just about crawl buck naked and blind folded on broken glass across the state of Texas to avoid.
Over the years we've told more than a few clients that, for their situation, the timing didn't appear to be right and perhaps they should hold off on their decision to sell or buy. The advice we’ve offered, which I think the majority of REALTORS® would offer, is advice that is tailored to the best interests of our client, not our wallet.
As REALTORS®, we must to work to overcome the public perception of the real estate agent as lazy, unethical and self-serving. The truth is our membership is made up of an incredible group of talented, hardworking, consumer focused men and women. Rather than shove NAR's propaganda down the throat of Mr. & Mrs. Consumer, we should use our position in the community to show that we really do have the consumers best interests at heart. We are the consumers advocate in a real estate transaction. Promote that position and shove the propaganda back in the closet. Our clients expect and deserve that level of care.
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Jesse & Kathy Clifton, better known as 'The Spouses' are full time Realtors serving Fairbanks Alaska buyers and sellers. They specialize in residential real estate; new and existing construction as well as undeveloped land in Fairbanks, North Pole, Ft. Wainwright, Eielson Air Force Base and Interior Alaska. Visit their website to review the fee market reports designed to keep you updated on the local Fairbanks Alaska real estate market. Have specific questions? Feel free to contact them anytime. They would love to hear from you.
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Jesse, OK I should have had you write my post from the get go!! Well stated. Your last paragraph sums it up nicely and should be the NEW NAR as campaign. All the consumer has ever wanted is the truth. It's not that difficult. Let's give them what they want and it will go a long way towards building trust and respect towards our profession.
Great post Jesse!!! Thank you
Jesse & Kathy, I love your term avoid being self-serving. As an ethical REALTOR we should always have the best interest of the client as the highest interest.
Jesse,You are so right! We can't just be cheerleaders. We do need to work for the best interest of our clients.
Great post! Well done! How about "It's a great time to buy if you are on drugs!" You are totally right to evaluate each deal on its own merit! There are some incredible deals out there, and with the right research wiht professionals like yourself!
Every market has opportunities, but buying or selling decisions are unique to each individual. Our job as professionals is to help clients see the market as it really is and to give them accurate, honest information so that they can make informed decisions.
I see your point, but it IS a great time to buy. Rates are some of the most affordable in history for 30-year fixed and prices are soft, so it's a great time to move-up into a larger home.
OK, so when is a good time to buy? 20 years ago (1988) this month rates were over 10%. Even in the worst market places in America there are deals. You have great rates so there is one BIG hurdle out of the way in this market place. Do you wait until the the "smart set" picks through the good deals and then show your clients the left overs?
Economists predict (often like the weatherman) incorrectly and are very good at explaining why it didn't happen the way they predicted. So are you hanging your hat with the group of economists that say things suck, will suck and will suck really bad next year too?
It is anybody's guess and today as we all sit here it may be crazy to predict (I don't know either) but I have lived through a market like this under different circumstances and based only on my experience I can say there is always a buyer, always a seller no matter what the market is and right now as I sit here three purchase and sale agreements landed on my desk. Something is going on out there.
You don't have to drink the Kool-aide but you don't have to buy the other stuff completely either.
I agree with your post that being Pollyanna is not a good strategy and I think the NAR needs a new publicist!
Well deserved gold star! Great post and I'm sure it will generate some good discussion. Actually, it IS a good time to buy, but not a good time to sell - at least in most markets. Just imagine how much worse things would be with double-digit interest rates. Some of us remember those days, and we still sold homes at 16 and 17 percent interest. Now THAT is a bad time to buy, but people still had housing needs that we helped to fulfill.
Jesse and Kathy... very well said. I think I will copy this and pass it out at our next office meeting. NAR making a blanket Buy, Buy Buy suggestion is just as bad as the media making a blanket statement that the market sucks, sucks, sucks. There are markets where buying now is a great idea, but there are also markets where it isn't. Thanks for sharing.
I love this....Bryant also had a splendid post. I had a severe bout of intestinal flu a couple of weeks ago and was listening to the TV and a NAR commercial came on. I nearly started throwing up all over again.
It's a tough one for me. In my area prices just keep going up. We had a dip in 2006 and the "investor craze" is gone. Two things could happen. The market could dive, or it could begin its upward ascension again. NY is most like CA in the fact that it is desirable, jobs are concentrated here etc. CA took a big hit, but the craze never reached such huge heights in NY and the number of exotic lending instruments, although present - has been much smaller. Also, there is very little buildable land. Builders are trying to sneak through building permits on wetlands for God's sake (and sometimes getting away with - unfortunately.) A college friend of mine who currently lives in Switzerland is thinking of buying here because of the favorable exchange.
Talking to Nikki gives me a different perspective. I've had a couple prospects from Europe and they see NY like they see Europe. Land is scarce in Europe...but now the highly coveted coastal areas are crowded enough to resemble Europe where it takes many years for couples to afford a home. I see the analogy and tend to see some of the coastal areas and areas with high density and job concentrations as just becoming increasingly unaffordable. But its not an across the board thing. Areas with terrific reputations are selling very, very well - whereas other areas - not so much. The up-and-coming areas people are cautious about even though those are the best buy right now. My gut is telling me that certain parts of the country are indeed becoming like Europe from simple supply and demand.
Nevertheless, I'm not going to "hype the market." But I am a bit concerned that this market WON'T be going down and that it could become a playground for only the wealthy. With young people (and a lot of my clients are first-time buyers) I want them to have a 5 year time range (minimum 4 years) If they have that, and they have the down payment, they are far better off buying WHAT THEY CAN AFFORD rather than renting. It actually is costing less year by year to buy then to rent. The kicker is the "what they can afford" part. They only seem to want a 2 BR coop or condo...too expensive for most.
I'm not saying "Buy, buy, buy!" and I'm furious that my dues are going to this tripe. But I am saying that there are risks on either side. There is definite risk to buying (low if the time frame is reasonable) and a risk in staying in rentals that are going up 10% a year. I'm walking a very fine line with this advice and each person must be evaluated individually.
Jesse and Kathy: Good insight here and makes me reflect. But what if it really is a good time to buy? Should we point that out, if we indeed see it from a professional perspective? Perceptions are hard to fight. I give up!
Jesse,
This is an excellent post! ...they reduce us in the eyes of the public from consummate professionals to simply market cheerleaders. That line sums it up for me. Congratulations on the well-deserved feature!
Poor Pollyanna, though; she got a bad rap. So did her author.
Mike in Tucson
Bullseye! Excellent!
I accept that all real estate is local, although funding mortgages is very dependent on a much larger picture.
That said, how can a national campaign apply everywhere?
It is, as always, a great time to make informed decisions. Everywhere! Helping people do that is my profession.
Kudos from this Mike J, too, for: "...They reduce us in the eyes of the public from consummate professionals to simply market cheerleaders."
NAR has the strength, our money, to offer so much more substance. They also reduce NAR in the eyes of the public, with specious blather. Judgement and creativity are sorely lacking.
Jesse...
Oh! Man! What an excellent job you did with this...
And it got featured. Good for you...
I'll be back to mouth off after I have my morning coffee :)
TLW...ROAR!
Jesse
Great post, I personally hate it when organizations that are far removed from the trenches make blanket statements. How about a campaign to put realtors in a positve light. That would be a good use of our money. Thinking that the NAR could possibly care about consumers when they don,t even seem to care about their realtors is a pipe dream.
It runs counter to the argument that Real Estate is local when a national body makes sweeping statements such as "It's a great time to buy!" or "It's a great time to sell!" How can they blast someone like Jim Cramer for making broad grandiose claims about Real Estate, only to turn around and talk in the same generalities? I really don't like undermining the credibility of our association, but I don't like it undermining mine either. Valid points you make here, Jesse.
It's a great time to sell your home- if there is someone who can buy it at the price you hope for. Seems like everyone knows it's not a seller's market. To pretend it is... is... well, folly.
Very well stated. Real Estate is local and that is why the services of a diligent and competent professional are so valuable. There will always be opportunities but they are not simply "blanket opportunities." Qualifiers need to put in place and each clients' specific needs should be carefully analyzed. Thanks for a very well written post on this topic.
Okay Jesse...
I'm back.
The biggest problem I have with these NAR Campaign's is that when all is done and said...
The folks in this industry come off looking "STUPID" in the eye of the Consumer. That's because they are not "STUPID"...
And they see this as nothing more than "US" manipulating the RE Market.
On top of that I don't like being Coerced this way.
If we really give all of this some thought when we make statements that may or may not be true...
We are no longer looking out for the Consumer. In this case we appear to be looking out for what's best for NAR...
Disclosure: This is my not so humble opinion :)
TLW...ROAR!
I must say I feel they (Nar) are correct. It is a great time to buy. Lower prices with record low interest rates make this the best market to take advantage of buying real estate.
That said, I doubt they are implying that we as realtors don't still need to do our job and qualify each client, and help them with decisions that will benefit them in the long run.
Most realtors (actually most people) grab the negative and run with it. We have had a down market here for 3yrs+ and I do very well. I am positive about the market, the future and direction of our city and it makes clients want to deal with me. Therefore the positive side is worth grabbing onto while being realistic to individual needs of clients.
Just my opinion
I completely agree with you. For some people it is a great time to buy. For others, that is not true. Real Estate is and always will be personalized. Honesty, integrity, and our clients should always be our priorities
Great post with excellent timing. Thanks for sharing this...
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Jesse and Kathy, this point is so true. buyers at least for myself and a few of my agents, they are opening up and ready to do something.
Portland once again is the 3rd best performing market in the country. It is a good time here to buy now. If a person's personal situation warrants it, they should buy.
I have never had a customer look to NAR to help them find the best time to buy or sell. They look to me.
I look at NAR as if they are lobbyist - they are lobbying on behalf of Realtors. Their economic forecast is their opinion. If they don't speak to your market, then tell your buyers not to buy because the market is bad. But you won't find me doing that because I consider the best time to buy or sell real estate is when my customers are ready. My job is to find them the best deal, within the current market. And I am no NAR cheerleader, nor do I sugar coat anything. This is a good market to buy!
No matter where the market is - up or down-it swings in someone's favor. And right now, it is in the buyers favor. You can't tell me that it's not a good time for someone to buy, especially when buying during our hot market of 2005 is what has gotten a lot of families into these short sale situations. We have down payment assistance money available in our county, sellers are paying more closing costs and reducing their prices, interest rates remain low, and there are FHA loans available that are not credit score driven.
It's a much better time to buy than during the sellers market a few years ago. Back then I'm sure there were very few Realtors who were actually telling their buyers NOT to bid over list price on a house, plus pay all the closing costs because the market is about to decline. No, Realtors were writing contracts left and right because their buyers wanted to BUY. We couldn't tell them "no". Getting the best deal for them meant getting the contract, and that meant going over list price because of multiple offer situations. Nobody was mad at NAR then. Why has it changed now? I think it's because deep down inside, we are afraid of being held responsible for this declining market. Many Realtors were totally taken by suprise when the market began to drop so suddenly. Granted, we can't sell a house that doesn't appraise or that the lender doesn't fund. But, it seems as if the public's perception is only focused on Realtors being the one to drive up the market. It's safer going with the doom and gloom forecast during these uncertain times. We don't want to be perceived as wrong again.
Great post. It's a nice compliment to BB's.
Hi Guys, It is a buyer's market, and it is time for them to start their investing again. Loans are cheap, cheap, cheap. They will start soon. Jerry
Hi Guys, It is a buyer's market, and it is time for them to start their investing again. Loans are cheap, cheap, cheap. They will start soon. Jerry
Hi Jesse, Very well written analysis of this issue. Remember, NAR was pretty much all alone saying the market in 2005 should continue well into the future. I don't think that guy is around anymore !
Great post. You are so right that it is much better to inform the consumer with data specifically in their market area and for the properties they are interested in. There are some great deals to be had as well as great financing options.
"Why The Housing Bubble Won't Burst" by Business week magazine. There were people who predicted the market would sustain and others predicted that it wouldn't. I didn't cancel my subscription to business week, and it doesn't make me mistrust NAR because they had to fire someone who got it so wrong.
We'll just have to see how it plays out, and deal with it locally.
Hi Meyer, I saw your note and just had to give my two-cent's worth. All I have to say, is what is this hypothetical person waiting for, heaven? These are the kind of times people look back on and say, boy, I remember when . . . . I surely wish I would have bought the home then. Go for it Mr. Hypothetical, and don't look back. Five years from now you will be happy, happy, happy! Jerry
Why is it that NAR is "manipulating the masses" with their campaign, but no ones says the media is doing the same thing with their blanket statements about the doom and gloom of the national housing market and economy? Most likely because it makes better news to create a villain, NAR and us Realtors, and point the finger at someone else other then themselves, the very news outlets that told everyone it was a great time to sell a few years ago.
Bryant Tutas, Broker-REALTOR(R) Tutas Towne Realty, Inc - Hey, Bryant - Well, if that's not an endorsement I don't know what is. All the consumer ever wanted is the truth. I totally agree.
Gary Woltal - REALTOR® Dallas Ft. Worth - Hey, Gary - Yes, sir. Anything less is just not going to work.
Roberta LaRocca - REALTOR® Las Vegas - Hi, Roberta - You got it. If we do that we'll be rewarded with more business than we could shake a stick at.
Jim Crawford~ Atlanta Real Estate, ABR - Hey, Jim - Thanks! It's a great market for some folks... it's all about individual needs.
John Novak - REALTOR®, Las Vegas and Henderson, NV - Hi, John - You just summed it up perfectly!
Vickie NagyABR, CRS, GRI, e-PRO, SRES - Hi, Vickie - Rates are low, I agree but blanket statements don't apply to every market. There are instances where despite the low rates, it's not a good time. I deal with a lot of military buyers and for some of them it's definitely NOT the time to buy. Getting orders to another post within a year or even two could be a disaster.
Kirk Williams, #LMA 510-LO-32537 - Hi, Kirk - Even in bad markets, real estate still changed hands, I'll agree. The point of the post wasn't to say that it isn't a good time to buy for some people in some markets, but rather that general statements are seen as self serving and don't inspire consumer confidence. I'm hanging my hat with the crowd that says there are problems with the economy and as such with real estate. Why? Well, for one, money is tight despite low interest rates. Tight lending guidelines have pushed a good many potential buyers out of the market - the changes at Fannie Mae/Freddie Mac and soon FHA will make it more expensive to acquire a loan. Second, but perhaps more important, is the struggling overall economy. Jobless rates are rising, stocks are volatile, commodities are rising, and inflationary pressures are getting stronger. Then we have $1.2 trillion dollars in mortgage defaults that haven't hit the market yet. Those are not the signs of a healthy economy. Will it collapse the housing market? Not entirely, but it should give us a moment of pause before bellowing out BUY, BUY, BUY because there are some negative factors at work.
Margaret Woda, Maryland REALTOR- Hi, Margaret - Thank you! I do remember those interest rates unfortunately. I remember paying 19% on a construction loan... the thought of that today gives me a headache. I don't dispute that there are good values to be had, but the millions NAR spent could have been directed toward acknowledging the difference in markets around the country rather than issuing a blanket statement. But, here's hoping we don't see 17% again. Yuck!
Karen Anne Stone- Fort Worth Real Estate Online- Hi, Karen Anne - You are absolutely correct. When the media was touting the crash of the real estate market, there were segments that were quite healthy... ours for one. We're still doing ok. I loved "Real Estate Is Local." That's much better than buy, buy, buy. I would be honored if you passed it out. Thank Bryant and TLW for the inspiration!
Ruthmarie Hicks- Hi, Ruthmarie - Glad to hear you're feeling better. The It's-a-great-time campaign has the same effect on me! There's no denying that some markets, especially the coastal areas will continue to enjoy a relatively strong market to some degree. I haven't really likened those areas to Europe but that's a great way to look at it. I also agree with you that buying what someone can afford will generally be better than renting.
Matt Grohe - Hi, Matt - If local markets indicate it's a good time to buy and buyers can find favorable financing and have the desire, then it would be a good time to buy. Perceptions are hard to overcome, which is one reason I really dislike the media or NAR making broad sweeping statements when they don't necessarily apply to every market. Keep on evaluating your market and giving consumers advice based on what your market is doing and you'll be fine!
Mike Jones - Mr. Mike in Tuscon - Thanks, Mike... I'm thinking that Bryant had a little something to do with it... it was definitely a nice surprise this afternoon.
Hi, Ann Gravel - Very well said. Never be afraid to be truthful. Words we should strive to live by every day!
Mike Jaquish- Hey, Mike - It's a great time to make informed decisions... I like that! I think we need to get these comments in the hands of some NAR directors. Oh, and you're right... mortgage monies and the overall economy have a major impact on our local markets - we should all be mindful of what's happening on the local scene as it will impact us locally.
"The Lovely Wife"...Broker Bryant's...Wife!- Howdy, TLW. Gotta have our morning coffee. No coffee = a cranky Jesse. J
Hugh Krone Sussex County NJ Century 21 Realtor - Hi, Hugh - Isn't it the truth? Our dues money could be doing so much more!
Paul Slaybaugh, Scottsdale AZ Real Estate- Hey, Paul - The sweeping generalities need to go away in favor of a campaign that focuses on US as the sources of local real estate market information. NAR can examine national trends, and they have a place in the discussion, but it really is all about what's happening locally. I think sometimes even NAR forgets that.
Chuck Willman, Realtor®, ABR, TRC - Hi, Chuck - I agree with you. These are serious times... folly doesn't really need a seat at the table, so to speak.
Lola Audu~Grand Rapids, Michigan Real Estate - Hi, Lola - You're welcome! Thanks for reading my little rant.
"The Lovely Wife"...Broker Bryant's...Wife!- TLW - I'm kinda inclined to agree with your not so humble opinion. We can't kick start the market with hype... it just makes us look foolish. Foolish doesn't inspire confidence or trust. Thanks to you and Bryant for the inspiration. We're looking forward to a great summer this year... if you and Bryant want to get away, come up and see us. The fishing and shopping are great! J
Jeanette Vallance - Hi, Jeanette - I'm not advocating the abandonment of a positive attitude... far from it. I just don't feel that NAR should be pushing propaganda down the throats of consumers or using us as pawns in a half-baked marketing scheme. even with low interest rates, there are pockets where it might not be a good time to buy. With $1.2 trillion in mortgage foreclosures expected to hit this year, changing lending requirements, etc. it's a little misguided to chant buy, buy, buy... as a national campaign. If local conditions warrant, then I agree... buy. It's blanket statements I disagree with... good and bad.
Christy Powers- Pooler, Savannah Real Estate Agent- Hi, Christy - Well said... if we always deliver on honesty and integrity and treat our clients to the professional service they are entitled to, they will keep us busy.... and that's the best way to move forward... at least in my opinion.
Al Maxwell - Real Estate Agent - Hi, Al - Thanks for stopping by and reading!
Frank Rubi Louisiana Real Estate-Homes for Sale - Hey, Frank - Yea, we're moving along a little better than we were during the first half of January... I'm hoping it continues. I don't predict that we will have much more than 2-3% appreciation (market wide) this year but I do think we'll keep moving forward.
Portland Oregon Real Estate >> Wayne B. Pruner, GRI - Hi, Wayne - Outstanding. That's what it all comes down to... local market performance and buyer needs. Here's hoping Portland keeps on rocking and rolling!
Bethany Little- Hi, Bethany - I agree with your description as NAR being the lobbyist. The issue I take is with their message. One size does not fit all. These are the same people that were saying "It's a great time" in the middle of the one of the biggest real estate bull markets. The message is just disingenuous. Admittedly, I've written more than a few over full price contracts - some by as much as $150K because it was what the buyer wanted and they were prepared for the eventual and inevitable downturn. I told many buyers that got caught up in the frenzy that they should probably let a particular house go... many of them did and are fortunate now not to be in a position where they have vastly more into the house than it's worth. I also built more than a few houses where the buyers didn't care about costs or appraised values... but they plan to be in the property for a long time and if not, they have the financial ability to take on any loses they might incur.
Melina Tomson Salem Oregon Real Estate Specialist - Hi, Melina - Bryant actually inspired the post... Thanks for reading!
RE/MAX Kai Lani - Hey, Jerry - It is definitely a buyers market. On that I can't argue. We're seeing more buyer activity lately than in the past month, which I'm very happy about!
Bill Gillhespy Fort Myers Beach Realtor- Hi, Bill - I remember NAR being very acting in pushing encouraging buyers to jump into the market... even as it escalated through the roof. I don't think that guy is around anymore either.
Charity Lane - Hi, Charity - You've got it. We have some homes here that represent great values as well!
Bethany Little- Beth - I don't know that I distrust NAR because of the ad campaign, but I do question the blanket approach.
Meyer Leibovitch - Hi, Meyer - I agree with Jerry... under those circumstances I would say it's probably not a bad idea to move ahead with a purchase. Take a few of those points out of the equation and the decision might go from good to questionable. It's all relative to the local market and the buyer(s).
RE/MAX Kai Lani - Agreed, Jerry. Under those circumstances I doubt they would look back in 5 years and be unhappy. Then again, as with any investment, past performance is not guarantee of future returns.
Jennifer Kirby - Hi, Jennifer - I agree with you completely. The media will more than likely never acknowledge their blanket "the market is crashing" predictions were too general and that some markets performed quite well during the time others were going down considerably. Personally I think the media portraying a nationwide crash is just asirresponsible as NAR's campaign. Both push aside the principle that notwithstanding national financial trends, all real estate is local.
Well said, "As REALTORS®, we must to work to overcome the public perception of the real estate agent as lazy, unethical and self-serving." Kudos!
The real estate market is like the weather, its different all over the country. It certainly is a great time to be buying.
"Well, for one, money is tight despite low interest rates. Tight lending guidelines have pushed a good many potential buyers out of the market - the changes at Fannie Mae/Freddie Mac and soon FHA will make it more expensive to acquire a loan."
The only place money is "tight" as you say is the Jumbo market and remedy is on the way by raising the ceiling. Changes in risk pricing has already occurred and it has been my experience (particularly FHA) financing (the Non-Jumbo crowd) is the same as it was 20, 10 or 5 years ago and in fact FHA is your best bet for people with distressed credit AND is the better program than the exotics that were offered in the past.
The guidelines for FHA in fact will be improving with the modification of down payment from 3% to only 1.5% so I do not know where your position comes from in terms of the financing aspect of this. Some tweaking did occur but the overall state of lending contrary to myth is fine.
As the jobless claims came out today I could hear the hissing of air getting sucked out of this industry as the doom and gloomers point to this and say, see I told you when in fact the numbers will be revised lower, inventories in manufacturing are low so they will be manufacturing their little butts off this quarter and by the time April comes around with the mixed bag of profit reports, the light at the end of the tunnel will not be a train even with more write offs looming I hang my hat on the side that we are bouncing at the bottom now and although we don't know when the turn will come, the bleakness that is being communicated is overstated.
I think advocating real estate as an investment (or your home) at this time under certain circumstances and market conditions is warranted and you being the professionals in this area I trust will not be bellowing buy buy buy. You strike me as a very thoughtful person but I don't understand why some in this industry wish to focus on the fire and fan it.
So for those professionals that got into this industry post 911 welcome to the "slow down" or little "recession" if that's what you want to call it, since it is the first of its kind you have ever seen but it will get better and we will be waiting for you all on the other-side.
Buyers have a choice. Do they wait for the other lemmings for the market to turn while the smart set picks up the good deals leaving the left overs for the rest or do buyers PATIENTLY with their Realtor evaluate and find that opportunity now?
Good luck have a great year.
NAR is a trade association and, to some extent, it is their business to be cheerleaders. I agree with you that real estate professionals have a responsibility to be counselors to their clients and that may mean giving the bad news along with the good.
It is misleading to say "rates are great" when many can't get a mortgage. That's like the grocery store advertising chicken at 49 cents a pound, even though there's none in stock.
I saw Eric's note float by on my e-mail and I just had to comment. Interest rates are GREAT! They have seldom been this GREAT. Having GREAT interest rates has nothing to do with the fact that there are people who can't yet qualify for a loan. If someone doesn't qualify, they need to look at themselves, not the money markets. While I understand the analogy, money is available for those who are qualified and those who are qualified can get loans. Jerry
Meyer,
And they shouldn't have. They instinctively knew they were getting in over their head, rolled the dice and lost.
You instinctively know not to step in front of a bus so I am going to take the leap and figure people looking at what they earn vs. the payment that is presented can figure with pencil and paper whether they can make it fly.
I'm sorry I evidently am missing your point. I hear there are some very good prices on yachts 100' or more too but I penciled it out and I am not going to be buying one.
Bradenton Florida Real Estate - Dan Forbes REALTOR®: Hi, Dan - Thanks for stopping by, Dan!
Richard Lecinski: Hi, Richard - Markets are indeed local... that's exactly my point.
Meyer Leibovitch : Hi, Meyer - I figured as much... and you're absolutely right.
Kirk Williams, #LMA 510-LO-32537: Hi, Kirk - Fannie Mae/ Freddie Mac, which are our two major sources of conventional financing are using risk pricing for everything - not just the jumbo loans, so for some, those changes have pushed them out of the market. Those that used to get A pricing with a FICO of 620 are now paying a major premium in the form of rates and upward moving MI rates where before they weren't. The bottom rung is now 640 which isn't a huge difference, but it pushes a big pool of buyers into a different category today. I do agree the changes at FHA will help, but I've heard more than a few folks say that FHA, who isn't doing risk based pricing say it's something that's in the design stage. Whether it moves from there is an unknown.
Real estate is still a good long term investment... that we certainly agree on. This slow down in the market isn't the death kneel for the housing sector by any means. But, I think ignoring the negatives or not giving them enough consideration would mean, as agents, we're not providing the level of care we are expected to provide. With all that said, there are great values to be found right now and as long as buyers understand the short term risks and they're ok with them, they should plow ahead. For those folks I agree with Jerry that if they wait too long, they will regret it. Here's hoping we all have a great year!
Eric Kodner CRS, ABR, e-PRO, CLHMS, Madeline Island Real Estate Wisconsin: Hi, Eric - Good to hear from you. I believe NAR should support our positions in the community, I'm just not crazy about the way they did it with this campaign. It could have been done in a way that directed focus to local markets rather than issue a blanket endorsement to buy. For the folks who can't qualify, the great rates are a moot point.
RE/MAX Kai Lani: Hi, Jerry - 30 year rates here are sitting at 5.5%. That is without a doubt a great rate.
Couldn't possibly agree more. Personally, I'd like to see the NAR use our dues in a more effective manner, such as funding local campaigns that actually adress local markets, rather than increasing and supporting the incorrect idea that many consumers have that real estate is a national thing, rather than local local local, as we all know it to be. If they continue to make blanket statements about the nations real estate market, how in the world will consumer ever learn otherwise?
Hi Ryan, Couldn't let your comment pass. I don't think the NAR should fund any "local" campaigns as this is the job of your local Association. Here in Hawaii, the Hawaii Association of Realtors (HAR) did this for awhile with somewhat negative results. Seems when we funded a candidate who didn't win, and the competitor won, we didn't have any clout when it came to issues near and dear to our heart, and in fact, many times these guys who we didn't support, often worked hard to defeat our issues. We are now focusing our political money on issues. It is a real problem. Hawaii is a liberal and anti-business state and we have found it very difficult to be as effective as we would like regardless. The real problem is that the members of the HAR themselves simply will not get involved, and that is where the big clout is. Money or no money, if the realtors would get behind their local leadership and support either a candidate or an issue with their personal involvement, the HAR could swing a big stick. As it is, we are a paper tiger. Jerry Bangerter, Prior Chair for the HAR Legislative Committee.
While the idea of it being a great time to sell is a little hard to swallow, I personally don't mind seeing a little rah, rah from the NAR on the buying side of things. The media has sure done a number with its' blanket 'sky is falling' agenda. While every market is different, there are many people who are under the mistaken impression that the real estate market is bad everywhere. Maybe a little rah, rah will spur them into really investigating individual markets.
Congrats on the feature!