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Is the Real Estate Market Going Up or Down?

by TeamForYOUrDreams

Which way is the real estate market going, up or down?  That depends on whose statistics you believe.  The Case Shiller index says the market has gone down in value for the last five months straight.  It is not surprising that the Case Shiller index is favored by the default servicing industry, those that see the glass half empty.  In other words, if you are selling in Raleigh, Cary or Morrisville, North Carolina it is a buyers market.   On the other hand, John Burns Real Estate Consulting says that their analysis is outdated.  That firm conducted its independent research in 97 markets across America and found that prices were rising in 90 of them.  From January to March, 2012, the real estate consulting firm says that the average price increased by 1.1%   They say that in the last month, prices are up in 93 of the 97 markets.  These folks see the glass half full.  In other words, if you are selling your home in Wake Forest, Garner or Holly Springs, North Carolina, it is a seller's market.

How do you explain the different conclusions?  They collect the data differently.  Case Shiller takes its information from closed sales.  Most sales take 30 to 60 days to close. Then, it takes 30 to 60 days to collect the data.  The John Burns Real Estate Consulting survey uses properties at the point when the sales contract is signed.  The consulting firm claims that their data indicates what is going on currently, while the other studies review past history.  The consulting firm says that the housing market recovery is under way, but it could turn at any moment, particularly if the media publicizes the Case Shiller index's pessimistic view of the market.

So, if you are selling in Raleigh, Cary or Knightdale, North Carolina, you want to believe the John Burns Real Estate Consulting survey.  If you are buying in Wake Forest, Garner or Holly Springs, North Carolina, you want to refer to the Case Shiller index to support your offer.  Who is right?  It depends on who you believe and whose method of collecting data is more reliable.

 

Sixty Minutes Version of Real Estate

by Team for YOUr Dreams
By Tim Burrell - Sixty Minutes did a report on Real Estate last Sunday, which caused me to lose my respect for Sixty Mintues.  Other Realtors are mad about it, while I found it hilarious, like a bad Saturday Night Live parody.  Sixty Minutes was complaining that the National Association of Realtors was stifling the market, forcing everyone to pay 6% commissions, and not allowing other forms of Real Estate Brokerage to use the Internet to their advantage.  I found every one of those claims ridiculous, as they went into a virtual advertisement for Redfin, a firm that uses the Internet only to sell houses, and does it by using the homes listed by hard working, full service Realtors.   In other words, their own show contradicted their claims.
Sixty Minutes had a young lady, who claimed she had once been a successful full service Realtor, state that she took a $12,000 commission for one sale where she worked for only 4 hours.  I particularly liked the fact that she talked like the Valley Girl on the recording by Moon Unit Zapa.  I have been a Realtor for 27 years and have never had a sale that took only 4 hours of  time.  For example, the time spent the day before closing and at the closing is normally more than four hours, and that is the quick finish of weeks of work.  So if the full service she delivered took only four hours, I can see why she had to get a low paying salary job working for Redfin, as no one would pay for her level of service.
Redfin does not show homes to buyers.  They let the buyers look on the Internet, something any buyer can do on their own.  Then, when they find one they like, Redfin gets the full service Realtor who has listed it to show it to their client.  So they use the full service Realtor's time to do their job.  Then, Redfin rebates 2/3 of the commission to their buyer.   Can you imagine buying a house where your Realtor has not even seen it?  What kind of advice could they give you?  For that level of service, they should give back more than 2/3 of the commission.
The presentation by 60 mintues was so full of misinformation it made everything they said unbelieveable.  They claimed that the National Association of Realtors is the governing body for real estate brokers.  It is just a trade association, each state has governing bodies for its real estate agents.   This misinformation came after they spent days with the National Association of Realtors, yet failed to mention any information they got from that source.  If you would like to see the full response by the National Association of Realtors go to http://www.realtor.org/about_nar/NARRespondsToSixtyMinutes.html .
If you saw this program, and you have a sense of humor, you will love this video from UTube, by some young people who knew what a parody Sixty Minutes was doing.  Take a look at http://www.youtube.com:80/watch?v=ZZzbrftTF0g and let me know what you think.
Real Estate sales is more competitive than any other business I know, with more different business models and pricing options than any other service industry.  For example, there are about 11,000 active listings in the Triangle Multiple Listing Service, and there are about 11,000 Realtors in that same area.  There are full service companies, part time companies, discount companies, "put you on the MLS only companies", "you chose the services you want from a menu" companies, and a huge range of payment plans.  You can imagine the competition. I am happy that so many clients value my service that I can be one of the top full service agents in such a competitive market.
It is too bad that there may be some people out there so poorly educated in Real Estate that they might believe Sixty Minutes story.  The story did one great thing for me, I spend my time on Sunday evenings reading instead of watching Sixty Minutes, and I thank them for that.

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Contact Information

Photo of Team For Your Dreams, Inc. Real Estate
Team For Your Dreams, Inc.
REMAX United
7721 Six Forks Road, Suite 110, Raleigh, NC 27615
Raleigh NC 27615
919-846-3272
919-812-5111
Fax: 310-347-4041