For the most part, especially on the Island, a lot of our homeowners are investors or second home owners.  They don't NEED to sell.  Unlike a family who has to relocate to Cleveland, Ohio and MUST sell their house in order to buy a new home, these owners are under no pressure to sell.  Meanwhile, most of our Buyers are also investors or those shopping for a second-home.  They don't NEED to buy.  They keep hearing the media saying not to buy yet because prices will drop more... so they wait... and wait... and wait.  In our market... they could be waiting a very long time... for prices to drop further.  Their motivation to buy is weak... and the Owner's motivation to sell is weak.  So where do you suppose this puts us?  At a stalemate.  Neither side has any motivation to change to their position.

For the most part, our market was not impacted by the sub-prime mortgage fiasco.  Very few people use sub-prime loans to buy in a resort/second home market.  The mainland still showed some good activity, all things considered.  A lot of that was driven by the Federal Law Enforcement Training Center (FLETC) who was very active moving people in and our of our area.  I know most of my business in mainland Glynn County was associated with FLETC clients.  These folks HAVE to move or HAVE to buy so their motivations are strong.  But the trend here is that new homes are outselling older homes, even those that are only two to three years old.  Why buy used when you can buy brand new - right?  A challenge for homeowners to be more competitive than the new developments...

So far this year, I have been hearing our phones here at the office ringing a lot more.  Offers are being made and offers are coming in.  I've begun showing my listings more than I have in the past month or two... so the feeling here is that things are definitely picking up.  But this has always been the trend prior to the "boom"!  How quickly we forget!  4th quarter would die down and 1st Q. would see things picking right back up again... and this year is no different.

The other morning, the Today Show on NBC has some financial 'expert' on telling people to rent not buy.  To me, anyone with any sense would know that buying is always better than renting.  Anyone who suggests you throw your hard earned money away on an investment with absolutely NO chance of a return is just nuts.  Buying a home under any market conditions is always a wise investment.  Real estate traditionally has been a long term investment.  Those who are hurting today are most likely the ones who lost sight of that fact and bought to make quick and easy money.  Buying a house, making a mortgage payment, not rent, you are investing into your own equity.  Even if the house doesn't appreciate for a year or two, the real estate market is cyclical... so the long run, your investment should be sound.  The chance of getting a fair return on your investment when you buy a home is always there.  Renting gets you absolutely no where.  I can't believe this guy actually said what he said on national television.

So take care to temper what you hear about the real estate market with a little common sense.  The media has their own agenda, whether they're left or right... Especially in a politically charged Presidential election year, we will probably be hearing a lot more from liberal media and conservative media alike - trying to push their own agenda among the American public.  Unfortunately, as real estate is such a driver of our economic health, we get caught in the crossfire and the public gets confusing messages.  

The basics never change though.  Homeownership is still the cornerstone of the American dream.