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.
Special Edition -
National Association of Realtors® Launches New Ad Campaign:
Public Awareness Campaign: Market Facts
Buying a home is a great way to build long-term wealth. There are some other important dividends, too.
To counter recent negative housing reports in the media, NAR is helping local REALTOR® associations across the country explain the real facts behind the real estate market in their area.
NAR has created a print ad that targets potential home buyers, educating them about the long-term value of housing and providing insight into local real estate markets to help buyers make informed decisions about what can be the biggest investment opportunity of their lives. A full-page version of the ad will run in USA Today on Nov. 9, 2007. Local versions of the ad will run in select markets nationwide on Nov. 11, 2007. Local REALTOR® associations can create and place a version of the ad in their own markets. Visit the online Ad Generator and select "Public Awareness Campaign," "Buyer" to request a customized version.
View the National Print Ad
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Recent Quotes about the Positive Signs in the Real Estate Market:
Be Proud of Your Industry: Realtors Assist Residents Affected by Wildfires
Realogy announced the Realogy Charitable Foundation will distribute 100 percent of all funds raised by employees, agents, vendors and partners in support of the Southern California wildfires relief efforts underway by the Red Cross, Salvation Army and Direct Relief International. The Realogy Charitable Foundation said it would match employee donations up to an aggregate $100,000.
--"Real Estate Intelligence Report," (subscription newsletter), Vol. 13, No. 43, Oct. 29, 2007
The National Association of Realtors donated $500,000 to assist victims of the Southern California wildfires and called upon its members to contribute to its Realtors Relief Foundation.
-- "NAR announces $500,000 in wildfire assistance," Inman News (subscription required), October 25, 2007
Real Estate Commissions Rise
Many sellers believe they can sell their homes quicker by hiring the best salespeople, which comes with a premium. Some may have returned to full-commission brokers after trying unsuccessfully to sell their homes themselves. "A year ago people were asking, 'If things are selling in two days, why should I deal with a full commission broker?' Now sellers want a professional to hold their hand."
-- Jim Long, real estate broker in upstate New York, "Real Estate Commissions Rise," by Les Christie, CNNMoney.com, October 31, 2007.
Owning a Home - Why it's Still the Best Long-Term Investment
Consumers and homeowners who are in it for the long-term are once again showing to come out well ahead. Because of the power of leveraging, $10,000 used for a down payment on a typically priced home in the U.S. at a typical home price appreciation of 5 percent will return $110,000 after 10 years. The same $10,000 invested in the stock market appreciating at 10% annual increases will result in $23,600. No wonder the data from the Federal Reserve show consistent results year-after-year of the staggering difference in net worth between homeowners and renters. A typical homeowner had $184,400 in net worth versus only $4,000 for a typical renter.
-- "The Long View," by Lawrence Yun, vice president, National Association of Realtors® Research, Real Estate Insights, October 2007.
Finding the "Hot Market"
There is a market that is hot as blue blazes -- steaming with multiple contracts, escalating prices and sellers walking away from the settlement table in less than a few days of marketing their homes, taking nearly half the amount of time to sell. This is what I call a Hot Market. What would it take to turn around the Not Market -- the market that's not selling quickly, requiring even larger price drops and seller concessions IF they happen to draw an offer from anyone? Price and condition. That's it. Nothing more, nothing less.
-- "The Hot Market vs. the Not Market," by M. Anthony Carr, Realty Times, Oct. 24, 2007
Accentuate the Positive
The literal bombardment of negative media about housing sales has had its impact on the consumer psyche to the extent that they are either unwilling to purchase homes or they are afraid to purchase. One idea to counter this perception issue, expressed by Alex Perriello, CEO of Realogy's Franchise Group, is to feature "Sold" property in proportion to "For Sale" property. For every five listings featured in classifieds or home books, include one sold property, says Perriello.
-- "Real Trends" (monthly newsletter, subscription required), October 2007
Agents Assisting Homeowners Fearing Foreclosure
Coldwell Banker Brokers of the Valley has created a "rescue squad" to help distressed homeowners realize their options. The members of the rescue squad meet regularly to brainstorm on solutions for the homeowner. "We look at all of these different possibilities and find the best option in hopes of beating the foreclosure time clock."
-- Doug Fowler, agent from Napa Valley, Calif., "Getting Proactive When Foreclosure Looms," by Jennifer Huffman and Kerana Todorov, Napa Valley Register, Oct. 27, 2007.
Regional Update: Good News from Several Markets Around the Nation
Silicon Valley, California
Silicon Valley consumers are more bullish about buying homes in the current soft market than they are about selling. With much of the region shaping up as a buyer's market, buyers who can find financing and can afford to buy can negotiate a pretty good deal with relatively low interest rates. If they stay put and ride out the soft market, they'll reap the benefits of the next upturn. It's not surprising then that 45 percent of consumers recently surveyed said it's a good time to buy a home.
-- "Silicon Valley More Bullish On Buying Than Selling," by Broderick Perkins, Realty Times, Oct. 23, 2007.
Dallas, Fort Worth & Arlington, Texas:
Prices in the region will remain steady. The value of all the houses sold this year in the area should surpass $17 billion, placing 2007 among the top-producing years. "We're still going to see some price appreciation. The area keeps growing. If you want to sell, you have to be competitive. The majority of homeowners are pricing it right."
-- Sue Meyer, president and chief operating officer of Coldwell Banker Residential Brokerage Dallas/Fort Worth, “Area Homeowners on Solid Ground in Housing Market,” by Sandra Baker, Fort Worth Star-Telegram, Oct. 29, 2007
Strong Signs in the Commercial Market Led by strong growth in the office and retail segments, commercial property sales hit $401 billion through Oct. 18, outpacing last year's $359 billion total, according to Real Capital Analytics, a New York based real-estate research firm. Construction spending on office buildings, shopping centers and other private, nonresidential projects jumped 15.2 percent in August, the Commerce Department said last month. -- "Commercial Real Estate Still Strong," CNNMoney.com, Oct. 22, 2007
Office vacancies are stable at near all-time lows, industrial space is hard to find, and Miami, which doesn't have a glut of shopping centers, is one of the few cities in the U.S. that can claim to be "under-retailed." "The commercial market (in Miami) is as hot as it's ever been."
-- Jon Bourbeau, senior managing director at Newmark Knight Frank, "Miami's Office Market Is Solid," by Ryan Chittum, The Wall Street Journal Online, Oct. 18, 2007.
Moody's Investors Service showed continuing improvement in real estate market (in Pittsburgh) over the last two years, with the region tying Tucson and Minneapolis for sixth-best market in the nation.
-- "Pittsburgh Commercial Real Estate Market Shows Steady Improvement," by Ron DeParma, Pittsburgh Tribune-Review, Oct. 21, 2007
Recent Quotes about the Positive Signs in the Real Estate Market:
The Price (and the Time) is Right for Buyers
"It is an amazingly good time to buy a house, and not a bad time to sell one if you are going to 'move up' - that is, buy a house 25 or 50 percent more expensive than your current house - because you end up catching a proportionately bigger price break on the new house than you may be giving on the old house."
-- Ken Baris of Jordan Baris Realtors, "The Case for Right Pricing," by Antoinette Martin, The New York Times (registration required), Oct. 7, 2007.
If the deal of a lifetime or the house of your dreams comes along, go for it. After all, it may not be available six months from now. As long as you remain in the house, any further drop in prices will be offset by once again rising prices sometime down the road. "In all likelihood, you'll make money in the long run. So your best deal could be right now."
-- Bernie Markstein, senior economist, National Association of Home Builders, "Clues About When Real Estate Prices are Ready to Rebound," by Lew Sichelman, San Francisco Chronicle, Oct. 7, 2007
"It's the best time (to get into real estate). You can make great deals today that you couldn't make a year ago or two years ago."
-- Donald Trump, "CNBC with Erin Burnett (video clip)," Oct. 15, 2007 "Housing is still a good long-term investment, and we'll be seeing a broad, modest improvement in home prices in 2008. With widely varying conditions, the best advice for consumers is to consult a Realtor® in their area to learn about local market conditions because supply and demand can change from one neighborhood to the next."
-- Pat V. Comb,, president of the National Association of Realtors®, "Improvement in Mortgage Market Bodes Well for Housing in 2008," PR Newswire, Oct. 10, 2007. "Although sales are off from an unsustainable peak in 2005, there is a historically high level of home sales taking place this year - a lot of people are, in fact, buying homes. One out of 16 American households is buying a home this year. The speculative excesses have been removed from the market and home sales are returning to fundamentally healthy levels, while prices remain near record highs, reflecting favorable mortgage rates and positive job gains."
-- Lawrence Yun, senior economist for the National Association of Realtors®, "Dare We Hope - Housing Conditions Are Improving," by Blanche Evans, Realty Times, Oct. 12, 2007 World's Wealthy Investing in Real Estate "All that we may be seeing is that people are just waiting to see what may well happen either domestically or internationally, but the appetite for further investment is undoubtedly there."
-- Mark Cunningham, managing director of Bank of Ireland Private Banking, "World's Wealthy Still Hungry for Real Estate," by Paul Hoskins, Reuters, Oct. 10, 2007 Regional Update: Good News from Several Markets Around the Nation
There are areas of the country where it makes sense for some to buy. That's because sellers eager to unload their homes often accept less money from buyers. New construction also slows. Both bode well for buyers hoping to score a deal - if the market in which they are buying is expected to experience increased sales. The results turn out three types of markets and three types of deals.
-- "Best Places for Real Estate Deals," by Matt Woolsey, Forbes, Oct. 9, 2007
Washington State:
Trying to time the market is "a fool's game." "If you are buying a home to live in for more than three years, then buy the one you love, not the one that you can save $25,000 on."
-- Matt Deasy, MLS director and general manager at Windermere Real Estate/East Inc, Washington
"The time is right for buyers on the sidelines to step forward. They have many more home choices now than in the past few years."
-- Marcie Maxwell, an associate broker at Windermere Real Estate in Renton and certified residential specialist, Washington
"Every week things are getting better. Interest rates are still low, the local economy is healthy, and job growth is strong. This is an ideal time for buyers because they no longer have to pay the pricing premium that existed in previous years. There is less competition for homes, yet prices continue to appreciate, creating a great opportunity for buyers to position themselves for the future."
-- J. Lennox Scott, chairman and CEO, John L. Scott Real Estate, Washington
"Regional Spotlight: Prices, Inventory Still Rising, Sales Still Slower Around Washington State," RISMedia, Oct. 9, 2007
"We have a real solid market (Tacoma, Wash.) year in and year out."
-- Patrick Maddock, president of the Tacoma-Pierce County Association of Realtors, Washington
Tacoma has a solid economy based on strong employment: "If buyers are waiting for the bottom to fall out, it's not going to happen."
-- Tom Hume, a real estate agent at Windermere Professional Partners, "Tacoma, Wash.: Prices Hold Up," by Christine Dugas, USA Today, Oct. 12, 2007.
North Carolina, South Carolina, Texas, Utah, New Mexico, Colorado, Kansas:
The top housing markets expected to see the strongest growth in home values through the second quarter of next year are in North and South Carolina, Texas, Utah and New Mexico, according to a forecast compiled by Santa Ana, Calif.- based Veros Real Estate Solutions. The firm expects the top five strongest housing markets in terms of price growth to be: Raleigh-Cary, N.C., at 7 percent growth; Austin-Round Rock, Texas, at 6 percent; Charlotte-Gastonia-Concord, N.C.- S.C., at 6 percent; Salt Lake City, Utah, at 6 percent; and Albuquerque, N.M., at 5 percent.
-- "Some housing markets seeing strength," Inman News (subscription required), Oct. 15, 2007
"Markets like Austin, Salt Lake City and Raleigh have been outperforming recently and will continue to do well next year. Other areas like Denver and Wichita will likely move up in the price growth rankings due to very positive local economic developments."
-- Lawrence Yun, senior economist for the National Association of Realtors®, "Improvement in Mortgage Market Bodes Well for Housing in 2008," PR Newswire, Oct. 10, 2007.
Palm Beach, Fla.
"I think there's a very good chance some pent-up buyers are waiting for the season. I've seen people flying down to buy quickly, to be in before season start. I haven't seen any figures that aren't appreciating at the rate that we are used to."
-- Rosalind Clarke, broker, The Corcoran Group, "Palm Beach Brokers Predicting Strong Real Estate Season," by Stephanie Murphy, Palm Beach Daily News, Oct. 14, 2007
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