Katie Couric is not my friend right now! -Negative news affecting real estate

"No one denies that the market has its downs as well as its ups, but more than a few real estate professionals feel that the news media is as much a cause of consumer gloom as it is a reporter of it. This is an old story, of course, but recent market conditions have certainly exacerbated the problem" (http://realtytimes.com/rtpages/20080723_pushback.htm).

I couldn't agree more-the gloomier the news stories the better. And it's really affecting real estate. Obviously, if consumers are hearing report after report about banks going bankrupt or home prices falling, their confidence in the market is going to plummet. But consumer confidence is just what we need to get through these tough times.

"Earlier Monday, President Bush acknowledged the "pain" of investors and workers in the finance industry, but assured the public that the government is working to iron out the problems. 'In the short run, adjustments in the financial markets can be painful, for people worried about their investments, and for employees of the firms,' said Bush" (http://money.cnn.com/2008/09/15/news/economy/bush_economy/index.htm).

No doubt we are going through some hard times that may last till the end of 2009, but that doesn't mean we are going through a depression or even a recession (By definition, a recession is an extended decline in general business activity, typically two consecutive quarters, or six months, of falling real gross national product). And it doesn't mean people aren't still going to need to buy and sell homes.

I've said it before and I'll say it again, buyers and sellers alike need to continue to be educated about the market and the current trends going on. Real estate is very local and if you are getting information about national reports, you are not getting the whole picture of what is happening on a local level.

In the words of Henry Ford, "Whether you think you can or can't, you're right." The Wall Street Journal recently published an article about the significance of our beliefs and the mental models, or mindsets that shape our behavior. When we hear over and over again about the down real estate market and our economy in the tubes, all that negative information gets stored deep in our heads and we end up going along with the doom and gloomers. What good is going to come out of that? If consumers are not doing what they do best, consume, then how are those numbers going to go up? How are we going to pick ourselves up and out of this mess? Consumers need to turn off the tv, put down the paper, and talk to a trusted real estate professional about their local market.

This seems to me that the press as well as consumers are getting a little worked up over a major bump in the road. Perspective is difficult when your viewing a period of time that most of us can't even remember. What we're dealing with now is a nasty correction that was bound to happen after the huge housing boom we experienced.

We at the Egerer & Weidauer Team continually educate our buyers and sellers about the market to help them better understand what is really going on in our market. Call us today to get some real real estate news!

Jeremy Egerer 360.990.4083 www.jeremyandnicolesellhomes.com Nicole Weidauer 206.661.7256