We tend to be a nation of statistics. What's your GPA, batting average, bowling average, slugging percentage, closing ratio, can ratio, leads per sale, percentile of achievement, and on and on.
Now we read or hear that housing starts are up - or they could be down depending which newspaper or cable service you are using.
Then we hear that it could be another 3 years before things are "back to normal." Phooey!
News flash: this is the new normal.
Forget what is happening in other markets except as cocktail party conversation.
Look at your own market. This is what we have to work with, so until conditions change, this is normal. It's not the way it was, but it is the way it is.
What's the first rule of real estate? No, not location - the other one. Real estate is local.
'Nuff said. Concentrate on how our own markets are performing and do our best to be leading the way.
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© Steve Hoffacker, 2009. All Rights Reserved.
I agree with you. Our markets are local. I'm in Colorado and especially in Vail I have seen slumps like this at least once every decade. This time this slump is the 3rd in a decade. It will recover but not for 2 to 3 years. Other local areas might be less while others might be more. So concentrate on your own local area, and like you said ...that is the norm. There is only one thing that sells real estate...price.
Thomas,
Thanks for your support and agreement. Willing participants and a good agent help, too. :)
Steve
Steve that is good advice. I have friends who live in Michigan. They have been complaining that they cannot sell their house, will not try, for years. I guess it is bad there. Here things are slower but certainly no standstill.
Steve,
Some markets were heavily impacted by new construction and second homes. Others were not. :)
Steve
Steve - News flash: this is the new normal. That statement really sums it up. Those waiting for the market to return, will grow old waiting. And those who learn to adapt and adjust to the conditions of the new market will prosper.
New construction is virtually STOPPED entirely in the Central Virginia area and there are many who have sold elsewhere in the country who are moving into the area and are electing to LEASE for 2 to 3 years - they have sticker shock that I prices have not dropped as much as the rest of the country AND they do not want to get stuck on the "out" side in 2 or 3 years and go through what they have just gone through with selling a home....I think almost everyone realizes the "recovery" will take longer than Obama's first term at the current rate!!
John,
Thank you. I have studied several markets to come up with this conclusion. :)
Steve
Wallace,
That's my point. This is the new normal - the leases, the short sales, the fewer starts - again just in some markets. :)
Steve
Amen! Whether we like the new normal or not, this is what we've got to learn to deal with.
Ann,
Thanks for the agreement. Those of us who accept this and are ready will work circles around the others. :)
Steve
You are so right. Real Estate is local. Some of our markets have seen shifts in value of 35-40% over the last two years while others have only been slightly affected by the recession.
Tom,
Thanks for the agreement. I think too many people are listening to news that doesn't even affect them. :)
Steve