Real Estate in the 21st Century

Yesterday, I finally admitted that I was in trouble.  I have been advertising my wares for years the same way, ads on television, in newsprint and even sometimes sponsoring  local athletic groups.  I have new computers, transportation and even a new cellphone that allows me to be in contact with the world 24/7.  But I can't sell a thing.  The general public thinks that the price of homes are too high, they can't get financing and literally wouldn't buy if the price was cut by 50%.   I will probably have to let go my marketing assistant and my personal secretary.   After that, I will lay off my buyers agents and maybe even sell some of my resources that I need to stay in business.

My employees are going to be mad.  They think that since I have the new car, big house and all, that I should have to keep them employed regardless of my expenses.   I know, I agreed to keep them on all this year, but I am at my limit.  What should I do?

This is just an illustration of what Realtors and others in the business have been facing for not just the last few months, but some for the last two years.   And of course, most of my peers do not advertise on TV so that is an exaggeration.   But most of us have advertised in print, many of us sponsor our local athletic groups or charities and if you were successful, you probably did buy new technology to help with your business.

This  is no different from the auto makers.  They have done many of the above items to stay on top.  But what differs with them and the hundreds of thousands of agent/owners of real estate shops across the land is that we cannot go to Washington hat in hand.   

I have no sympathy for those that get to play by a different set of rules.  So, be gone big three, good riddance.  For those auto workers making $80.00 an hour, there are thousands of openings in real estate for you.  See if you can make do with less as we have for awhile.

Walkertown's town council voted to prohibit graffiti on public buildings even though no buildings have been defaced and they may even lack the ability to enforce the resolution.  There are current laws in force from the county that would apply in these situations and it was an example of elected officials doing something just for the appearance of their actions to the public.   We have thousands of laws currently not being enforced and one more will not make the world a better place.   The public deserved better.   Additionally, the council voted to give $500.00 to the Walkertown Wolfpack Cheerleading squad to help pay for expenses for a competition in Florida.  The organizers had asked for over $12,000 and last year asked for $8,000 for the same type of competition.  The money, $500.00, may not seem like much, but exactly who benefits from the expenditure?  This a perfect example of abuse of power by our elected officials.  From giving companies tax breaks to relocate to an area at the expense of existing businesses to now cheerleading competitions, where will it end.

For real estate in the Yadkin Valley, http://www.yadkincountyrealestate.com and http://www.hrgproperties.com

For new construction, http://www.whiteoakcustomhomes.com

For news of local interest, http://www.yadkinvalleynow.com 

The stock market rose 494 points Friday supposedly because of president-elect Obama's choice for Treasury secretary.  Timothy Geithner, currently the president of the New York Federal Reserve was tapped to take over for current Treasury head Henry Paulson when Obama takes office next year.  Geinthner is posed to take a position that has been in the news lately, especially on dissatisfaction of the way Paulson has handled the bailout program.   With the markets in free fall, banks have not used the bail out money in the way the TARP was conceived, rather they have used the money to shore up their balance sheets and even buy distressed rivals. 

It seems that unless the new Treasury head is under a different set of rules than the current one, we may continue to see the same type of bailouts going forward.  Be concerned, it's your money.

For real estate in the Yadkin Valley, http://www.yadkincountyrealestate.com and http://www.hrgproperties.com

For new construction, http://www.whiteoakcustomhomes.com

For news of local interest, http://www.yadkinvalleynow.com 

Citigroup, one of the largest banks in the world and recipient of at least $25 billion from the TARP, saw it's shares sink to record lows with the market slashing it's price to under $4.00.  Fears of huge loan losses that have not been written off its books caused the stock price to drop by over 50% last week.  Investors were concerned that the liquidity of the bank is in question and that the government make create a takeover of the company that would wipe out common shareholders.  Since there are few companies that  could absorb the huge banking giant, the government is sinking further into nationalization of our banking industry.  These types of actions only delay the effects of free market actions by protecting troubled companies at the expense of companies that have shown better management.   It further delays inevitable bottom of the market which will continue to be buffeted by wild swings.   The average investor is getting hammered because of this type of interference by the government.  It is time for the government to focus its attention on the citizens of the US instead of protecting the people who got us into this mess.

For real estate in the Yadkin Valley, http://www.yadkincountyrealestate.com and http://www.hrgproperties.com

For new construction, http://www.whiteoakcustomhomes.com

For news of local interest, http://www.yadkinvalleynow.com 

Finally, we are getting there.  The stock market dropped close to 500 points yesterday to close at multi year lows.  Now down 19% month to date, this is shaping up to be one of the worst months on record.  Fear is in the market and sellers out number buyers by huge numbers. 

But there is a silver lining.  The governments around the world have pumped trillions of dollars into the system and it will began to take effect soon.  The best thing that is happening though is the lack of government intervention.  Since the interventions have stopped, the markets, left own their own have responded in the way they were designed to work.  Citigroup, one of our big money center banks saw their shares fall below $5.00 yesterday.  This prompted forced selling by mutual funds that had been hold the beleaguered companies stock when it was known over 6 months ago that the bank was in trouble.  Now, the company must look to private sources for capital, a partner or bankruptcy.  Again, with no intervention, the speed at which this happens is accelerated, not delayed.  This is playing out with many stocks.  Logically, then we are getting close to a bottom, one that cannot be reached with the government picking and choosing recipients of TARP money in a haphazard way. 

Stay away from thebanks, many will fail, their deposits will then go to other banks and shore up their accounts.  Let the big 3 automakers become 2 or less and the domestic production of automobiles will fall to a more profitable level. 

Will there be more pain. Absolutely!  But even the worst pain goes away when the correct medicine is applied.

For real estate in the Yadkin Valley,  http://www.hrgproperties.com.com or http://www.yadkincountyrealestate.com

For new construction, http://www.whiteoakcustomhomes.com

For breaking news across the valley, http://iwww.yadkinvalleynow.com

You would think that with the economy in shambles, with jobs being lost, companies going under and the demand for mortgage money going down, interest rates would follow the same rules as supply and demand.  With the lack of demand, banks should be lowering rates to create demand.  But this is not the case.  Rates are actually going up.  The banks have something that the normal business doesn't have. That is a monoply on the money that is loaned in America.   Of course, many people and for sure banks would say that there is great diversity in lending, but since we as individuals can't go to the Fannie Mae lending window, we are shut out of low interest money.  

It is a shame that the banks couldn't see that lowering rates would at least make them look less greedy, considering they are borrowing money from the taxpayer at little or no cost.

Where is the outrage?  Where is congress?  Where is the NAR?

For real estate in the Yadkin Valley,  http://www.yadkincountyrealestate.com

For new construction, http://www.whiteoakcustomhomes.com

And for the best in the Yadkin Valley,   http://www.yadkinvalleynow.com

We had our first winter weather mix yesterday with this photo showing the dark skies over Yadkinville at the Unifi and Hwy 421 exit.  In the distance you can see the clear skies that prove that good weather is just a minute or two away.

For more pictures of the Yadkin Valley, go to http://www.yadkinvalleynow.com and look at the photo galleries.  For real estate in Yadkin County or the surrounding area, http://www.hrgproperties.com .   For new construction, http://www.whiteoakcustomhomes.com

I thought I would be one of the first to start the long tradition of making predictions for the upcoming year.  And if you are looking for something humourous, this isn't the place.  My predictions are not only negative, they are down right scary if they come to fruition.

1.  House prices continue to fall as more Americans fall behind on their payments due to job losses and a slowing economy.  Thousands of homes go on the market because Realtors will not tell anybody that their home not only will not sale at list price, they lead sellers and buyers on with comments like "market has bottomed or prices can't get much lower"

2.  After much denial, hundreds of thousands of Realtors decide to become teachers or at least tell friends that they want to do charity work, something they are highly trained in.

3.  Americans continue to see their 401-ks drop in value, while all along, their brokers or fund managers have pushed for "staying the course"

4.  Hundreds of thousands of small businesses go under, none have access to the government bail out money, none have high priced lawyers working for them in Washington or their home capitals.  They let more than 1 million employees go.

5. Banks use their billions to fund their special interest lawyers and get Congress to finally understand that Realtors are not capable of handling complex real estate transactions, especially since they were part of the millions of loans that went bad.  Congress lets them sell Real Estate.

6.  The banks need the built in infrastructure of the nation's largest real estate firms.  The top 5 firms are acquired by banks.  Thousands more Realtors find new jobs in the service industry.

There is only so much I can predict now,  Let me think some more and I am sure I can come up with more

When will the general public wake up?  The big issue today is not the economy, not terrorism, not the housing crisis.  No, the press wants you to think the big thing going on now is the dilemma that Barack and Michelle Obama have-where to send their kids to school!

This is the problem that our next President has.  He has also denied the same opportunity for millions of people that have children and would like to send them to better schools than their local public schools.  He  gets to send his children to the best schools, we get the worse.

For those that think I am dissing Obama, not at all.  The current and past crops of elected officials have created lives that are the envy of the normal American.  They have salaries that have not in any way faced pressures of outsourcing or globalization.  Their perks are a health system that is way above the best plans available for us.   They take "fact finding" trips around the world at our expense.  No, I dislike all politicians, and only wonder what it is going to take to end this feeding at the public trough.

And where is the NAR?  I'm sure there are many Realtors that are having great years.  But I dare say that if you think that I am wrong, just look at the membership of the national organization or your local one come January.  If just 20% of all Realtors decide to exit the business, wouldn't that number alone be close to the number of jobs lost that the big three auto makers would have if they go bankrupt?  What bout the appraisers, mortgage brokers, inspectors, etc. that are part of our down channels?  The numbers become staggering.   Why shouldn't we get some help?  I don't have a plan, just send me about 50K!  I'll pay taxes on it and spend some on the basics and maybe even buy a few Christmas gifts.

Folks, the basic make up of our country and definitely the way we make our living is under assault.  I don't want the same people saying the same thing.  We need new ideas that will help small business people like ourselves, not big business. 

If you think that you have the plan, get it on record,  Let's try to change things from our level, not big government.

Right now, there is a burglar in your house!  If you knew where to look, you would see him.  Is is laughing at you, and will take your savings and your wealth.  His partners are in on it, one is keeping watch, making sure that the burglar is not bothered.  The police are in on it too,  They are looking the other way whilel you are robbed.

What am I talking about.  YOUR LIFE SAVINGS, YOUR HOME, AND YOUR WAY OF LIFE.

The federal government is bailing out banks, insurances companies, bank holding companies that used to be just credit card companies or finance companies.  They are using your money.  The loss of wealth in the country is affecting the guy on main st.  That means you.  The folks that are supposed to be watching for this type of theft, the Security and Exchange Commission has watched as the bandits have taken billions from unsuspecting citizens, not for the first time, but for the 2nd time in 8 years.  The fall of the stock market is directly attributable SEC looking out for the big investor instead of the millions of people that have invested their savings in 401-ks and mutual funds.

But the biggest crime is being committed by our elected officials.   They have no clue and no right to bail out private companies and repay old debts with our money. 

Where is the outrage?  We just elected a President that is calling for more bailouts,   Not that McCain wouldn't have done the same, but where does it end?