Its no lump of Coal, it’s the real deal!

Watching the final preparations for tomorrow’s historic Presidential inauguration, where more than 2 million citizens are expected to line the parade route and be in the audience to witness President Obama take the oath of office. What struck me most was the collective sense of hope and expectation we are feeling with the arrival of the new administration. Thinking back, try and find another occasion when our hopes have been so high. The closest match for me was a childhood Christmas Eve. I wanted a bicycle…I believed I was going to get one. I was already riding it in my mind. When I went to bed that night, I was certain I’d find my new bicycle in the morning…and I did.

Wednesday, when we get up, we’re still going to have the same market conditions we have today, we will also have a more hopeful attitude, because, we have not heard -until this new administration- the statement that we can fix this together. Starting tomorrow afternoon, we’re going to begin to solve this crisis together. Even though sales are still down, prices are still down, short sales and foreclosures are on the rise and the credit market is a mess. Its OK, because we’ve been there, we’ve done that, and we even got the T-shirt to prove it.

NAR is before congress this very minute explaining how our REALTOR® Stimulus plan can help. First…Give every home buyer in 2009 a $7,500 tax credit. A real credit, not a 15 year repayable loan. Second…Use some of the bailout money to enable banks to deliver below market mortgage rates to buyers. NAR brainiacs have calculated that a 1% below market rate mortgage will stimulate an additional 500,000 home sales in the first year!

Consumer confidence is at the heart of our current troubles. In ’06-’07 it was too high and we reached way beyond our means. In ’08 we woke up with a nasty hangover and our confidence eroded to an all time low. The binge is over. Its time to begin the road to recovery.

Thank goodness for REALTORS®. Who else is in the position of begin able to help buyers and sellers understand the realities of our new real estate sobriety! Lets talk reality:

Reality #1 – Neighbors are better than investors. Our market really took off on the strength of out of town investors. With that money essentially “off the table”, today’s buyers are families looking for a place to call their own. Helping these clients through the maze that is today’s mortgage process, adds one more family to our community.

Reality #2 – First time home buyers have never had it so good…or so bad. Housing affordability in Ada County is the best its been in years. But preparing a new, first time buyer for the rigors of today’s market, is a job that only a REALTOR® can do.

Reality #3 – If it walks and talks like a duck…it may be a Doberman. Are short sales the best thing to happen to today’s buyer? Maybe. Are they the worst thing to happen to today’s buyer. Maybe. Who’s going to know how to tell the real opportunity from the prolonged trail of total frustration? Only the REALTOR® who has taken the time to learn the nuances involved.

I believe, January 21st we will find that new bicycle, and we’re going to ride the heck out of it in 2009!