From The Desk of Chris Mygatt - December 2007

Positive Angles

What are real estate professionals saying to homebuyers and sellers about current market conditions? The successful brokers and sales associates are talking about the strengths that exist in the market - not the negative media hype. Below are positive angles that appeared recently in the media and underscore why it is a good time to buy real estate.

Recent Quotes about the Positive Signs in the Real Estate Market:

Helping Homebuyers and Sellers Navigate the Market

• "What consumers see in the newspapers and online is based on the view of the national market from 50,000 feet. Those numbers don't reflect the true story in any single marketplace."
  
• "We have to get localized and start showing consumers that real people just like them are successfully buying and selling homes in this market. The price range has nothing to do with it; it's all relative to what you do with it."
  
• "For the people that have been in their homes for four years or longer, the possibilities of what they can do in this marketplace are tremendous - especially if they look in their own market."
  
• "I always urge consumers to talk with a professional, and to look at their individual situation. You never know what you can do until you ask and investigate."

-- Tom Kunz, president and CEO, Century 21 Real Estate LLC, "Taking a Stand," by Stephanie Andre, Real Estate magazine, November 2007.

The Big Picture: Homeowners Still in Good Shape * If prices more than doubled as they did in 33 metropolitan markets between 2001 and 2006, even 10% and higher average price drops in once-booming areas of California and Florida have left long-term owners with most of their paper gains intact. For the vast majority of owners, the giveback has been a modest fraction of the price gains of the previous five years.

• Bottom line: The housing price correction cycle continues in many -- not all -- parts of the country. But in the absence of a recession or major capital markets crisis, most homeowners' equity stakes are intact.
  

-- "Price Drops are Sobering, but the Big Picture is Still Rosy," Kenneth R. Harney, Los Angeles Times (registration required), Nov. 18, 2007.

NAR Says: Median Home Prices Rise in Most Metros

In the third quarter, 93 out of 150 metropolitan statistical areas show increases in median existing single-family home prices from a year earlier, including six areas with double-digit annual gains and another 21 metros showing increases of 6% or more, according to the latest quarterly survey by the National Association of Realtors. Regionally, prices rose in both the Northeast and Midwest, as did the national condo price.

"What's really important for consumers is to make informed decisions based on individual needs, desires and timelines in a given area. Most people plan to stay in a home for 10 years, and for buyers with a long-term view, housing is an excellent investment."

-- Richard Gaylord, NAR President, "Median Home Prices Rise in Most Metros, Majority Show Modest Gains," RISMedia.com, Nov. 26, 2007.

NAR Survey: Consumers Bullish on Buying a Home

According to the National Housing Pulse Survey by the National Association of Realtors, nine out of 10 consumers say buying a home in today's housing market remains a good deal, and 59 percent of those surveyed said right now is a good time to buy a home.

-- "Buying a Home Remains a Good Deal," by Broderick Perkins, Realty Times, Nov. 26, 2007.

Regional Update: Good News from Several Markets Around the Nation

What Bubble? Top 10 Cities Where Home Prices are Rising Here are the top 10 cities where home prices are rising, the median home price and how much prices have risen in the last year, according to Forbes magazine. Click here for a slideshow.
1. Salt Lake City, Utah $233,100 +21.9%
2. Binghamton, N.Y. $111,200 +19.8%
3. Salem, Ore. $227,900 +16.7%
4. Farmington, N.M. $201,900 +14.0%
5. Allentown-Bethlehem-Easton, Pa. N.J. $274,500 +12.8%
6. Beaumont-Port Arthur, Texas $127,700 +11.8%
7. Reading, Pa. $157,800 +11.2%
8. Glens Falls, N.Y. $175,700 +10.7%
9. Spokane, Wash. $197,700 +10.4%
10. Cumberland, Md. W. Va. $109,300 +9.3%

-- "Ten Rising-In-Value Real Estate Markets," by Deborah Orr, Forbes, Nov. 8, 2007.

New Jersey
Home prices were up 3.6 percent from the same period last year, according to the National Association of Realtors. That may reflect high demand in New York City, which is in the same statistical area. "The region has held its value because it is close to New York and good corporate jobs. There's always a supply of buyers."

Robert Abbott, co-owner of a Ho-Ho-Kus, N.J. agency, "As N.J. House Sales Fall, Prices Still Rise - Only More Slowly," by Kathleen Lynn, The Record.