GiGi Faulkner, CRB

It's no secret that while we were riding the wave of a wild real estate ride that straddled two decades, cataclysmic changes happened in the way consumers search for and buy real estate. Unprecedented and increasing access to property listings and more has changed the buying behavior of the consumer in an irrevocable way.

Bear with me for a little history. As an industry we reacted- by buying up web sites as a way to market our properties and ourselves. Our initial sites, mostly templates, looked much like print property ads along with glossy online brochures about ourselves. But they were online, so we thought they were pretty cool. We spent lots of time and money turning our sites into online magazines, with a plethora of school and community information. Then our sites became more sophisticated, with better platforms to generate inquiries and capture leads - our appearance looks strikingly professional. Now, like the social creatures that we are, we have embraced social media as our newest toy, to connect with and expand our referral network. Some credit is certainly due: the web evolves and our industry follows fairly close behind.

I give you this short summary not to bore you, but to ask you to look back and ask yourself - was there ever a point where we changed ourselves? The whirlwind market of the last decade masked the changing behavior of our customers and blinded us to what they need from us. We showed property and negotiated contracts with customers in much the same way as we did twenty years ago. Business thrived, driven by a boom market where everyone thought they were winning. While the real estate market wore this happy mask of overabundant business, we didn't really notice what was happening. Let's face it, we were just too busy.

But now the mask is off. The economic downturn has brought us face to naked face with a consumer who has access to the same information that we do. With some dedicated study, they can gather as much raw data as a real estate licensee. For years we have been warned that we will no longer be needed. We‘re a little complacent, because of course, we are "doing the Internet" - and some are doing it quite well. Now we realize the undeniable power of social media to foster what we really love - relationships. Relationships and referrals have sustained our business as far back as we can remember. But are friendships enough? When our customer has increasing information and access to properties, what do they need when they actually meet us face to face? Are we ready to discover the answer and act on it?

As the third generation in my family to hold a real estate license and a broker of a real estate company, I am challenged by this question. I also believe in the value of my profession, so I ask myself every day -What is our new value? How do we discover it? How do we provide it?

Our value doesn't lie solely in being the trendiest technological user, even though we must relentlessly pursue improvements. Expert performance on the web is a given. I believe the answer for our relevance stands firmly within the human equation - where our technical expertise and personal knowledge and skills meet to give customers what they want.

We start by having the courage to ask customers what it is that they from us - because they do need us when we can provide what they cannot attain from themselves. For years, we have validated our profession by likening ourselves to attorneys, accountants and physicians. But have we checked our skill levels against the specialized knowledge that these professions provide? We must demand stronger entry and educational requirements with a higher degree of real estate knowledge - things like data interpretation and specialization. We must hone our skills in communication, representation, and negotiation.

Change is causing us to redefine our value. It will require a lot of hard work at a grassroots level. I call it reclaiming our professional significance. Let's make it a mission.

Just this week, when I was helping one of my agents with some neighborhood marketing, I reached in a battered paper file to find one of my old direct mail pieces in which I was prominently featured with a full body shot, attired in a short skirted business suit, complete with the requisite strong shouldered look, with a hairdo to match. Oh, and I held a full size phone up to my ear, with the cord trailing into the margin of the page, no doubt hard wired to my car, illustrating that I was in touch with technology, and always in touch with my clients. I regularly mailed this little card out to a neighborhood that I farmed, with timely real estate market information and news specific to the neighbors' interests.

My vintage card inspired raised eyebrows and "reee-ally?" from the Y's and X's, and knowing looks and raucous laughter from the veterans in my office, who have the same pieces carefully tucked away as evidence of their creative marketing in the heady age of agent personal promotion.

But for me, more importantly, the little card invoked memories of what it felt like to be a Realtor in Oklahoma City in the early 1990's. Our state, along with Texas, Louisiana, and parts of Colorado, was recovering from the oil boom and bust cycle of the ‘80's. In the mid 1980's we experienced the savings and loan crisis, multiple bank and mortgage company closures and real estate depreciation that reached the 30% range, accompanied by neighborhoods full of vacant and frequently boarded up houses, high interest rates, heavy job losses and bank closures. Properties were distressed, sellers were many, and buyers were few.

Currently we have a national real estate downturn after a boom market. Just like the 80's oil boom and bust, the cause is extrinsic, in contrast to the natural process that occurs when people buy and sell homes because of real life circumstances.

Media is full of statistics, conflicting opinions and speculation about the economy and the state of real estate. But what is it like to be a real estate professional right now? My reflection is - very much like it did twenty-some years ago. Back then, a number of agents left the business, a few entered it and became successful. When a Realtor was working with at least one qualified buyer, they were lucky and grateful. Appraisals and financing were tough and getting a deal closed was a lot of work. Many times the Realtor was the only one walking away from a closing with a check, and it didn't feel good. Clients brought all the emotion of their predicaments to the transaction; for Realtors it was uncertain, frustrating and a little scary. It took about 6 - 8 years for the market to trend upward and for new developments and construction to be started.

Sound familiar? Well, the history lesson brings good news. Great Realtors today, just like yesterday, are acting intrinsically to move the market forward and are bettering themselves because of it. Acquiring knowledge in short sales and listing distressed properties and foreclosures, and going where the business is to be found will insure their survival. Adapting to new lending and appraisal regulations and obtaining new professional designations in the areas of distressed property situations make agents more prepared to help their clients with complex situations. Working hard to get a contract closed, even two and three times, builds confidence and perseverance. Professionals are working together in a spirit of cooperation, not competition. Above all, communication and compassion inspire clients to move forward with the goal of an improved future.

Every day I see the same signs of increased competence and professionalism in our industry that I saw emerge under the pressure of the last real estate downturn. While wearing those power suits and doing vanity marketing, we were getting designations and improving our skills.

I see that shoulder pads are really hip now. And that is proof enough for me that what goes around comes around. Here's our opportunity to keep raising our expectations of ourselves. Let's make that a trend to keep.

The state of Oklahoma received good news yesterday with the release of the Federal Housing Finance Agency's second quarter housing report. Oklahoma ranked #2 with a 1.06% appreciation rate for the quarter ending June 2009, and a .94% increase for the year, only behind North Dakota, with a 1.91 % increase for the quarter and 2.82% for the year. This represents quite a contrast with most other states, who are experiencing decreases in the same quarter. Nationwide, the decreases appear to be diminishing. Overall, U.S. home prices fell 0.7% in the second quarter of 2009 from the first quarter of the year. Over the year ending in the second quarter of 2009, seasonally adjusted prices fell 6.1%. This was the second consecutive quarter that the rates of depreciation are slower than in 2008, signposts to a stabilizing market.

Metropolitan areas in our state show curious results. Tulsa experienced -1.23 % change for the quarter but .10% increase for the year. Oklahoma City showed a slight decrease in house prices for the second quarter, at -.74%, and -.34% for the year. The FHFA Report takes into account all houses that sold with Fannie Mae or Freddie Mac acquired mortgages, leaving out those sales with FHA, VA and jumbo (over $417,000 in Oklahoma) mortgages. While the report is a good overall indicator of past price performance, a few other statistics and anecdotal evidence warrant our attention as we watch to see how quickly our local market might move in the future.

First time home buyers are out in force right now, trying to secure a contract on a home before the $8,000 tax credit ends on November 1, 2009. Entry level homes are experiencing a noticeable end of the summer demand, so it will be interesting to see the effect on prices over the next three months.

A significant shift occurred in June in the upper-end residential market, with 29 homes closed in the Oklahoma City MLS between $500,000 and $2,000,000 range. six of which were over the one million dollar mark. This represents an increase over May 2009 of 12 closed sales and the lowest month of January 2008 with only 8 units sold. The June sales also marked the largest increase of upper-end homes since October 2008 with 24 sales and August 2008 with 39 sales. Over that last year, this has been the most cautious segment of the market, with a wait and see attitude. But that may be changing.

Is the Oklahoma flat housing price landscape shifting? With the bevy of first time home buyers scurrying to write contracts, will the hoped-for "trickle up" effect occur? Does the noticeable movement in the upper end of the market signify increased confidence in our local market? Overall the market is stable, with about 13% less inventory on the market than this time last year, with a healthy average of 80 days on the market and a 96% list to sales price ratio. With continued shifts in particular price points, we may be poised to see some peaks emerging on the housing horizon.

Sources: FHFA News Release, 8/25/2009; based on information from the MLSOK.com for a period of 6/01/2008 through 7/31/2009, while information is deemed reliable it is not guaranteed.