Charlotte New Home Consultant Spencer Olsen

I wanted to take a moment and wish the entire Active Rain Community the very happiest of Thanksgivings. Despite all the challenges we as an industry have faced, we still have so much to be thankful for, and we can learn the lessons of those first brave souls who took the ultimate gamble and tried to build a new life in a new land.

The Pilgrims were a remarkable group, in that they stepped out on faith that, carving out a niche in the wilderness of the New World was a better prospect than facing the status quo that was stifling their existence. We in the Real Estate Community are also in the wilderness of uncharted territory, working on faith and our ethic that tomorrow will bring a brighter future. Like the Pilgrims, we have suffered casualties and set backs, but through it all, we are forging on and improving ourselves, our service, and our industry. I am encouraged every day when I talk to Real Estate Professionals. Are we guarded? Yes. Are we fighting for every dime of business? Yes. Are we giving up? NO! The best path to the American Dream is still owning your own home and property. It is our passion to help people realize that dream that gives us value to our clients, and society as a whole.

So when you gather around your table this Thanksgiving, let's make sure we give thatnks for each other, and for the opportunity to work in the greatest industry our economy has to offer. I always like the attitude of my favorite fish Dory. When life gets her down? She sings.

Just keep swimming, just keep swimming, swimming swimming swimming. Oh I love to Swiiiiiiiiiiim!

We need to do that to. So all of you Real Estate Pros out there, Let's Swim!

It has been a while since I have posted on Active Rain, and it is interesting to read what I was thinking last year. I will reiterate that this is not meant to be a political posting, merely a place to prompt a discussion about how things affect our business.

For those of us in the Real Estate community, 2009 has been a truly remarkable year of market conditions. No one is taking business for granted anymore (if ever we should have in the first place). I applaud the Congress and Administration for extending the tax credits for home ownership. This program is certainly a great way to provide an extra benefit for home ownership, and is one of the few government programs that has a good sense of who the true middle class is. (the income limits do a good job of reaching all markets and maximizing peoples' access to this benefit)

In my opinion, the next big thing to watch is inflation, especially as it relates to interest rates. It was not too long ago that I was selling New Homes between 8% and 9% (circa 2001 & 2002) for mortgage rates. You needed to have an ARM to get into the 7% range. I recall a home I owned, and I was thrilled with my 7% 30 year fixed rate. What will happen when the American consumer is presented with rates above 6% let alone potentially 10% or greater? Interest rates are the most common vehicle to stem the tide of inflation which is coming sooner rather than later. This situation creates two considerations. First, with rates as low as they are, it would behoove a potential buyer to get locked in at these low rates. Builders are buying blocks of money in order to offer lower rates as well. With a Builder doing this type of incentive, you could lock in your rate below 5% for a 30 year fixed rate. Second, when inflation hits its stride, commodities become more valuable than currency, as a commodity is by nature a tangible "thing" which will often retain some value. Even the Pontiac Silverdome can be sold for $580,000.....think about that for a moment. The Silverdome cost $55,000,000 when originally built 2 decades ago. Even though this is an example of one of the worst Real Estate transactions , possibly in history, the Silverdome still had SOME value. As the value of our dollars decreases, it will make more and more sense to put our money into a tangible commodity, Real Estate being a great example.

We need to be talking to our clients and customers about the realitites of the current financial environment. Real Estate remains a great repository for their finacial futures. If we can clearly articulate the current market conditions, we can put someone in a posititon to hedge against the coming devaluation of our money. Good luck out there, and always try to do right for our customers, colleagues, and partners.

"You cannot escape the responsibility tomorrow by evading it today." - Abraham Lincoln

With the fall market rapidly approaching, it is important to take stock and think about the next few months. Of primary importance to our industry, the upcoming Presidential race will have a significant impact on our markets, both in the short and long term. Buyers and Sellers are waiting to see what is going to happen before they make their decisions regarding buying and selling homes. Whomever wins the next election, there will be far reaching impacts that will be felt as people recognize how new economic policies will either stimulate economic expansion, or increase their tax burdens. Once the election is decided, I think we will see a flurry of activity, as a large uncertainty is removed from the public's collective planning.

Kids are going back to school ( hooray comes the chorus from parents all over the country ), so it is important to allow extra time during busing hours. Keep an eye out for those school buses, and whenever possible, donate your time to your local schools. Schools are the backbone of any neighborhood, and your involvement not only gets you great exposure, but also is a great way to really educate your clients on how the school system works and what schools have to offer. If you have a student, or know a student, be sure to support their efforts, praise their successes, and hug them through their failures. Education requires more than the school, it requires people who will keep students encouraged, accountable, and engaged.

Finally, the fall is a great time to educate people about the consequences of their choices. People who are in the market now, may not realize the tax implications of being able to close prior to the new year. If they do, then their closing cost write offs will be available this spring, maximizing their benefit for buying this year. We also need to emphasize what a great time it is to buy now. Don't let housing news bring you down. If markets are slow, then it's a great time to buy. For sellers, there is always a need for quality inventory. If you are realistic about your selling price, you can make up losses with the great deal you can get on your new home.

"Try not...do or do not...there is no try" - Yoda