It was Thomas Paine who said “These are the times that try men's souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country.” While we are not fighting for our individual liberty, we at Schuler Bauer are fighting hard. But over time, we forget all that is not important, or relevant, to the situation in which we find ourselves immersed.
Just so is today’s REAL ESTATE MARKET. Having the disadvantage of age, I remember too much, and too well, the bad old days of the past.
Entering the real estate market place as a new licensee in 1980, I confronted a market where unemployment was historically high. Marble Hill had just shut down. What is Marble Hill you ask? It was a nuclear power plant project east of Charlestown that was stopped, throwing the local economy into a dither. Labor unrest at GE, and Ford, also had Louisville’s metropolitan area employment confidence at a low spot. Couple all this with mortgage rates at 16%, due to out of control inflation, and you have a terrible market.
As terrible as that market seemed, it was a great time to enter the real estate market. Agents learned the correct way to market properties. Clients did not think the agent was overpaid; they earned every cent of their commissions. An additional benefit to buyers and sellers was how creative agents developed creative strategies to market every property on the market. Additionally, lenders participated in creative lending situations that help clients through these tough times.
In retrospect, “tough” seems like an understatement when describing my first three years in the business (1980-1983). Yet, through these three years, Southern Indiana still saw price appreciation. Southern Indiana still saw the number of transactions increase. Southern Indiana faired better than the rest of the nation, better than Indiana, and better than...
Over the past year or so, we have been inundated with news reports that the real estate market is in the tank. Yes, the bubble has burst, the sky is falling, and those who dare to voluntarily make a move are destined to spend eternity in hell for being so reckless. Combined with the recent news about the mortgage industry, you’d have to believe that a giant, flaming meteor is on a collision course with downtown Sellersburg.
The biggest issue facing the real estate market today is fear. A motivational speaker once explained fear to me as False Evidence Appearing Real. Most often, fear is not based in reality, but in our perception of reality. We hear things, accept them as fact, and draw conclusions. Indeed, perception becomes reality. In this article, I want to address a number of these perceptions and share with you what is really happening in our Southern Indiana Real Estate Market.
A common perception is that home sales are down. This morning (August 31, 2007), I researched our Southern Indiana MLS to determine the number of home sales from January 1 – August 30, 2005 verses the same time period in 2006 and 2007; a year-to-date snapshot of where we are compared to this same time the past two years. In 2005,...