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Asked by Nubbs, Raleigh, NC Tue Jun 24, 2008

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8
Jim Johnson, , 78233
Wed Jun 25, 2008
BEST ANSWER
What the nay-sayers do not realize is that financial markets are no longer tied to the gold standard, and value is entirely rooted in perception and expectations. What this means is that the value in anything is only what the market participant believes it is.

Hence real estate markets are vulnerable to the same self-fulfilling prophesy that any other financial market is subject to. They just react a bit more slowly. Moreover, real estate markets are local, so local in fact that two neighboring developments that look more similar than not can have significantly different values. Since the media has been reporting the "crisis" in the real estate markets as a nation-wide phenomenon out of ignorance--another example of their proclivity to act irresponsibly--they, with the help of the nay-sayers who are too ignorant to understand the flaws in the reportage, may bring down the otherwise sustainable markets.

In my market, San Antonio, there was a significant decline in the volume of sales, but the overall average appreciation has been reported to be as much as 8% in '07. In my own neighborhood, 22 properties (3 BR, 2 BA) sold at an average price per sq. ft. of $89.85 from 06/06 to 06/07, and 12 properties sold at an average price per sq. ft. of $98.71 from 06/07 to 06/08.

Anyone who listens to "Market Report" on NPR heard last week that Charlotte, NC, was the only market that did not experience a decline in market values. This week, they would have heard that even Charlotte was in the midst of a 15% nationwide decline!

Yes, even NPR cannot be trusted to get it right! It seems that they are content to rest on their bed of laurels as somehow being better than other media sources based on the (mis)perception of their intellectually superior broadcasts.
0 votes
The Florida…, Agent, Spring Hill, FL
Tue Jun 24, 2008
The smart realtor knows that there is a living to be made in any market...whether dealing with sellers or buyers. If you work the deals without us, wonderful - congratulations... most people choose to have a professional and that's why we stay in business.

Yes, I could change the oil in my car, mow my own lawn, and paint my own house...but I'd rather not. Someone else who does it every day will do it better, faster, and ultimately for less money than it would cost for me to do it myself.

My time is better spent helping someone buy or sell a house than doing any of those things. It keeps my excellent friends in those business working, and it allows me to work for my customers as well as spend time with my family (I hope that us stinkin realtors are allowed to do that, yeah?)

Point is...I work very hard for my clients and customers and they appreciate my work - don't begrudge me a living. I'm sure you work very hard at your job to earn money and take care of your loved ones just as I do.

But good for you that you see things are changing. We're in a buyer's market. Is it a good market? Absolutely STELLAR if you are looking to make a purchase. If you're looking to sell, now is not the time. If you made decisions in your life that force you to sell, I can help you keep as much money as possible in your pocket...I hardly consider myself akin to a "crackhead looking for a fix"...deep breathing does help, though.

-Josh
2 votes
J R, , New York, NY
Wed Jun 25, 2008
Oh I'm sorry, I'm sure when Nubbs compared real estate professionals to crack heads he meant it IN A GOOD WAY. @@
1 vote
Larry Story, Agent, Greensboro, NC
Wed Jun 25, 2008
Nubbs,
As far as your general statement including both North and South Carolina what makes you any different then the national media commenting on a market trend in some large metro areas as if it were the entire nation? You seem to be quite the expert on Charlotte and are in Raleigh. Now you know everything on both North and South Carolina. Yes some areas have dipped a small percentage but, overall what is factual is that the "Carolinas" are doing much better then many other areas. I myself see plenty of buyers. I am working with over ten active buyers right now and that is just the buyers. So as Josh states below yes it is true the market changes so is the cycle of everything the one constant is change. But, as things change we all change, adapt, and survive that is reality. So we can all just sit as you do preaching doom and gloom with our head in our hands, or move on improve, change to the market, and become better for it. If we all walked around negative like you with our heads hung low then we would all be running into doors and walls like your picture. Hold your head up and move on.
1 vote
Dean Davidson, , Charlotte, NC
Wed Jun 25, 2008
Who has said anything about fear or hate, or said anyting fearful or hateful?
0 votes
J R, , New York, NY
Wed Jun 25, 2008
Bernita:
Dear Participants,

I think J R you should settle down, Hate is a pretty strong word and I do not detect it. I for one do like a give and take discussion and your comment nullifies it. You must of had a tender button pushed. I understand, dear. We all have issues.
~~~~~~~~~~
Dear Nubbs' alter ego, (Mrs Nubbs?), I think there must be a very strong emotion behind the motivation to come to a forum where real estate professionals are asked to provide free advice and help the public, with the sole purpose of making blanket negative statements about those agents. Don't you?
0 votes
J R, , New York, NY
Wed Jun 25, 2008
Your "question" is nothing more than an excuse to bash hard working people that you hate for whatever reason. First of all your "facts" have no substantiation, secondly, it's quite rare to see optimism in the real estate profession regarding where the market is or is heading, even here. When there is optimism it is due to the fact that houses sell, whether or not the market is going up or down. There are always people who have to move. Because the market is slower, there is less competition from other realtors. Those who are serious do fine. Where I am the inventory is very high, however the number of homes sold has remained the same for the past number of years. So houses are selling. What SUVs have to do with anything I don't know but it looks as if in your mind there is a correlations. But like a crack head you are hellbent on getting your hate fix in at all costs.
0 votes
Dean Davidson, , Charlotte, NC
Wed Jun 25, 2008
Negative Nubbs,
Are you one of those that still resent the Panthers and Bobcats being in Charlotte? Or is it the airport
you're envious of. You don't present yourself as a potential buyer in our market, so what is your story.

We have just realized the first decrease in home prices (0.1%) -"that is one tenth of one percent for those
in Rio Linda"- in 17 years. This comes at a time when our sales from April 08 are about 27% down from
April 07. However, sales in April 08 were also on the rise from February and March.

We knew at some point we had to face a market adjustment, as all business is cyclical. And in life,
nothing last forever. We believe the pendulum has begun to swing back the other way. Charlotte and
Raliegh share a common dynamic in real estate, I believe, and that is both are slow to react to negative
economic stimuli, while responding quickly and effectively to the positive.

So, take heart, put your drumsticks about Charlotte away, as this downturn which was bound to catch up
with us as well, will end, and home price will creep back up with decreasing inventories. It has already
begun.
Web Reference:  http://www.RelyOnDean.com
0 votes
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