There is a saying in real estate that real estate is local. If the car industry is in trouble, then the demand for housing in Detroit and wherever they produce cars is also going to be affected. If Disney closed its doors, Orlando economy and real estate would be absolutely devastated. But it is not only the local economy that affect real estate. Lending rates, unemployment, taxes, political stability and/or uncertainty certainly will have an effect on people's buying intentions and behaviors. To complicate matters, you should also realize that real estate does also affect the national economy. I do not know of any other industry that has such an effect on other industries. the building of a house and its sale will affect hundreds of industries and thousands of people. Don't think only about the carpenters, electricians, plumbers, roofers and the like, Consider also the attorneys, real estate agents, title companies, landscapers, movers, insurers, furniture builders, interior decorators, florists, local hardware stores, local grocery stores, road builders, police force, schools,... If the government does not intervene to promote and regulate the home buiding industry in general, then all the other industries will feel the effect. And if we are in a mess right now, it is mostly because of the government failure to regulate the mechanisms that enable people to prchase real estate. The mortgage mess is the root of our current problems.
Fundamentally, I agree with your take. Its just that I think you down play how things are connected in America and the fact that economics is a National thing, not a local thing. As I pointed out, high gas prices is a national reality, high food cost is a national reality, high rents and housing prices is a national reality, high utility bills is national reality, a weak dollar is a national reality. I could go on and on, and these things have an affect on us all. Some a little more than others, but not because of geographical locations, but because of personal financial situations.
This thing of a "buyer's market" or a "seller's market" is misleading. This derivative of supply and demand language really don't apply to buying and selling homes because the demand is always there - the population is always growing! However, the thing that moves this market currently is "CREDIT". And if that dry up, the market will stall. Period! Because people can't afford to buy homes with cash the depend on credit to buy homes and the housing market, as it is, depend on credit to exist. And this is not a local influence because Countrywide isn't a local lender. You see my point? When lenders tighten up, they do so nationally.
To James, and everyone else here, this is not about being right or wrong, it's about finding the truth. I am not against anyone here. I don't even know you guys. But we are all citizens of this country and most of us work in the business of selling and/or buying homes. It would be to all of our benefits if we understand this market better and I tell you, there will always be opportunities to make money in real estate but right now the game has changed because the things that move the market has changed. Therefore, we must change. And instead of debating and/or denying the obvious, we should be putting our heads together to figure out how to do things outside of the control of big lenders. In other words, we should figure out how to make the market dependent on people again, and not credit. Credit they control, people population they don't. At least not yet. And that's basically what I do for my clients. I get them homes without the use of loans, or very little loans.
No hard feelings, but that's just my take. And Mark, thanks for sparing me. lol.
I have been waiting for other Realtors to answer your question, so I can see where the majority is! But since no-one has done so yet, I am going to put my two cents in!
Overall the national and global market effects the way people spend money! They hear about high gas prices and they want to save their money. They hear gas prices going down, then they are back to spending again. Of course the reports you hear are mostly national ones and not local.
I think people listen more to hthe national reports over their local ones!
This may or may not have helped, but like I said, my two cents!
Have a good one!