Wendy Brown

The internet seduced us with more information than we dreamed was possible! We were able to peek at our neighbor's house, see what they paid for it, check it out by satellite...see who was swimming in the pool and what cars were parked there. We can calculate the distance to the nearest public transportation...or Mexican restaurant. Information that used to be hard to obtain and information that, without the internet, we would never seek to find was suddenly readily available and a few mouse clicks away. What voyeurs we became! In the privacy of our own home, we could sneak in and look at all sorts of information that we previously were too polite to ask about.

But the internet has caused something unexpected...paralysis! With so much information available and anyone with a computer able to set themselves up as a self-proclaimed expert, consumers are becoming overwhelmed. The information about real estate is everywhere.

We can get an estimate of our home's current value (whether it is even close to accurate is open for debate). We can see how much our local town's real estate values have gone up (or down). We can even look at a house that is on the market and instantaneously calculate what our mortgage payment could be. We can virtually roam through the rooms of houses that we could never afford just because we can.

As information became more available, consumers began to question why they needed a real estate agent. My simple answer is: we are here to interpret the information and turn it into useful material for decision making purposes. Out of the mountain of data, our job (among many others) is to sort and sift through the irrelevant and deliver a synopsis of relevant information.

The simple cure for information overload paralysis is a knowledgeable, experienced real estate agent who can interpret the information and synthesize it so that it is useful...not paralytic.

At the beginning of 2008, no one predicted that the national economy would be what everyone was talking about. No one predicted high unemployment, massive job losses and panic...yes, it went beyond fear to panic in some parts of the country. No one predicted the budget shortfalls and the major companies that went bankrupt.

Just like the economic chaos, no one saw the seismic shift in social values that had people borrowing beyond their means and buying a house, but not a home. In the last few years, we talk about the equity in our homes as if it is money in the bank...because it was! We could borrow against that equity and take a trip, retire, put our kids through college...whatever we wanted. People were scrutinizing the real estate market and celebrating with each increase in market value they saw their houses enjoy. Their home became just another part of their investment portfolio.

There doesn't seem to be a sense of emotional importance applied to our homes like there used to be. So, when the equity runs out, it is easier to walk away. After all, it's just a house!...just bricks and mortar.

I'm forward looking on most things, but believe we have to get back to thinking in terms of homes, not houses. Home as sanctuary, roots...and decent tax write offs! If we don't think of our homes as part of our portfolios, we would all sleep better at night in the comfort of our own homes.

What difference does it make to a resident of New England that there's a blizzard in Montana? More to the point, what difference does it make to a resident of New England if the national news is full of disaster stories about the national real estate statistics? The answer is not much...except to cause alarm and fear.

Real estate markets, like the weather, are localized. Even within each state, there are multiple markets...even within each town there are multiple markets. Recently it was raining in downtown Westerly, RI but not in Watch Hill and Weekapaug (neighborhoods in Westerly)...so even the weather forecast for a town can be wrong for part of that town.

We're bombarded with statistics regarding plummeting house prices and foreclosures daily. We've heard that the real estate market is in a mess and it's the tail that's wagging the economic chaos we are experiencing. But, there are markets that are doing well. There are banks lending money. Interest rates are at a record low rate...so why aren't there more houses selling? Again the answer is fear and uncertainty and lack of relevant facts (with relevant being the operative word).

Before becoming like Chicken Little, learn the facts about your local real estate market. It isn't all bad news.

There are too many properties on the market right now. The law of supply and demand suggests that when the supply is high, there is pressure on prices downward. And with fewer buyers (because of fears regarding the economy, job losses and other factors), the absorption of these properties is taking longer. Add to the mix that there is a new wave of foreclosures brought about by job losses, prices are being pushed downward some more.

If you are a seller, and you don't really need to sell, now is not the time to put your home on the market. If you are a buyer, you couldn't ask for better conditions for finding a new home...at a bargain price. If you are an investor, there are many properties available that will yield a positive cash flow.

Whatever your interest in real estate...get the local facts first! For facts regarding the real estate markets in southern Rhode Island, call or e-mail me!