The real estate market sure has resembled a roller coaster lately. It’s tough to figure out when the twist and turn is headed our way, but with the help of Coldwell Banker’s CEO Jim Gillespie we have some great insight to help us navigate the real estate roller coaster.

Below is an interview Jim recently gave offering his insights on the current loop-d-loops of the real estate market…

Coldwell Banker Communications:
Jim, on a national level the news appears to be solely “doom and gloom” for real estate. However, locally we hear many markets are business as usual. Can you explain?

Jim:
Sure. When real estate was booming, 1995-2005, people tended to get caught up in the investment value of their home and practically every market in the US was appreciating. From this, blanket statements were made about the housing industry, which is a mistake because you can’t compare apples to oranges. It’s about individual markets. Not everyone is buying the same type of home in the same area. There are many variables to consider and each market is unique in that sense.

Coldwell Banker Communications:
Are there any signs of improvement overall?

Jim:
Hopefully. Recent NAR statistics show that existing home sales were up almost 19% over last August and a recent survey from NAR found prices to be stabilizing. One key factor we look at is inventory, which has come down significantly. But what real estate professionals know is critical and should always reinforce with the public, what is happening in one market, doesn’t necessarily pertain to another market.

Coldwell Banker Communications:
Are there markets where the home prices are still plummeting?

Jim:
This all depends upon a particular area. As I mentioned, in general, the prices in many markets have stabilized. The problem areas are where there is an abundance of distressed homes. NAR reports that these homes generally sell for 15-20% less than a similar property. Therefore the overall market, when you look at median price, will be dragged down.

Coldwell Banker Communications:
In your opinion, is buying a home still a good investment with all these ups and downs we’ve been experiencing over the past couple of years?

Jim:
I get this question a lot and my answer is always yes! You have to keep in mind, people move for lifestyle reasons/changes. For those who are fortunate enough to have a job and financial stability, now is the best time to buy as a pure financial and lifestyle investment. I personally have invested in real estate and over my 36 years in the business, I consider it one of the greatest long-term investments anyone can make! Many consumers are still afraid because of the fall-out surrounding the economy and it will take time to ease those fears. All of us have an obligation to calm their fears and provide individualized counsel they so desperately need. That’s the higher calling of a Coldwell Banker agent.

Coldwell Banker Communications:
Jim, thank you for your time. Is there anything else you would like to add?

Jim:
Anytime! And yes, I would like to let our sales associates know what a great job they’re doing to help calm potential buyers’ fears. It is all about keeping them informed and educated about the home-buying process. Keep up the great work!