Optimism, Realism & Real Estate…

By John Mangas, Real Estate Broker with RE/MAX Preferred Toledo, Ohio
 
 

I am an optimistic person by nature and think of myself as a glass half full person.

Today is December 30, 2011 and I am forced to look at 2012 with one part optimism and one part realism. This is where it gets difficult.

Yes, 2012 is an election year which generally is good for the real estate industry. I’m not sure it matters this time around.

2010 was the year of the “short sale”. 2011 was the year of “robo-signer”. 2012 will be the year of____________________________(fill in the blank).

• Foreclosure
• Recovery
• Intelligent credit policies
• The 2^nd helping of price reductions
• Credit scoring reforms
• New construction
• Job creation
• Inflation

We obviously do not know, but these and many other factors affect our ability greatly to our ability of offer our clients great advise and make a living.

What we know for sure is that a significant back log of foreclosure properties need to make their way through the system. Job growth needs to occur and our economy must expand before we begin to reach an equilibrium in the housing market.

Because of their convoluted methodology, NAR’s market forecasts have been overstated by as much as 14% in 2011. That number has made it’s way into the mainstream media which undermines the integrity of our national voice. Case Schiller cranks out great information but they use data that is 3 – 6 months old. It’s great for trending, but does it really mean much to the home owner needing to get every penny out of their home? Earlier this year I was flipping through the morning news “talking heads” and their in studio real estate experts who had contradicting opinions about the future of home values. Our clients don’t know who or what to believe.

That’s where we come. We absolutely must be the local real estate expert. We must have a pulse on the market and be able to offer our clients a realistic picture of what is happening in the LOCAL Metro Toledo real estate market. No rose colored glasses, just facts and insights based our unique abilities to read what the conditions are telling us.

In 2012, let’s be extra informed so that our clients get the best information available from the real estate source…each of  us! Let’s make it our goal to keep real estate REAL in 2012!