Guest Blogger- RE/MAX CEO, Margaret Kelly

RE/MAX Elite and the Clermont financial group. If you absolutely, positively want to position yourself to be successful in today's market!

Empty News Coverage: Isn't the Glass Half Full?


First, let me say that I'm really glad that we have this new forum to communicate with each other. And I'm grateful to Dave for allowing me to post to Dave's BlogStreet. I'm looking forward to hearing from everyone about today's topic.

This morning it was my pleasure to be a guest on CNBC's The Call . I've always enjoyed having an opportunity to speak about real estate on CNBC and other media, as well.

Everyone I've met at CNBC has always been very polite and friendly to me. I understand that as professional journalists they have a job to do, but I think we've all been a little frustrated by media coverage of what was first referred to as a "bubble," then a "mess" or "meltdown," and finally a "crisis."

Reports like this may actually serve to prolong the situation, because buyers get nervous and stay out of the market. They worry that prices may continue to drop or interest rates will get better.

How does this happen? The media says the market is "bleak and grim," the buyers sit it out, inventory rises, and prices drop. Then, the media reports that it's getting worse! The cycle just repeats itself!

You can see the difference of opinion in the discussion that followed me on CNBC. They said I worked for a real estate company, that's why I was optimistic. Well, I'm not just a cheerleader, but someone who is telling the facts on the other side of the story. Real estate markets are local. It's hard to deal with "averages." And markets are cyclical, they're always changing.
The change we see right now does point to a flattening out. There is light at the end of the tunnel. Existing Home Sales have started to rise, foreclosures are coming down in many markets, and we hope these become trends. For many cities, towns and neighborhoods there's never even been a downturn.

The important point to keep in mind, and to tell your clients is that most of us have never experienced a "Buyer's Market" like we're seeing right now: tremendous inventory, historically low mortgage rates and reduced prices. Many investors are now recognizing this situation and taking advantage of it, as well.

I hope that you had a chance to see my appearance on CNBC today. I will keep spreading the "good word" and hope all of you will too. Please add your comments to this blog and let everyone know your ideas about dealing with this market and with the media coverage. Tell us about the positive signs you see in your area.