Story By Joe Zlomek

No matter what news outlet you rely on, almost every one this month (March 2008) is using the "R" word - recession - more frequently. Yes, it's due in part to the economy, but the drumbeat of repetition demonstrates the media's unfortunate penchant for emphasizing bad news. It also reflects concerns of the audience to which the media must appeal: viewers, listeners and readers across the country, worried for their future.

Then along comes Canadian real estate trainer and coach Mark Leader. He hears the "R" word and instead interprets it as "RE."

"To the ill-informed, it means recession," Leader writes in an article published today by RIS Media. "To the sales professional who recognizes that there will always be people who want to sell and buy, it means re-tool, re-commit, and reap the rewards."

The National Association of Realtors yesterday (March 6, 2008) predicted the median price of re-sale homes will drop 1.2 percent this year. It expects sales of re-sale homes will decline in 2008 for the third consecutive year. And it says the downward trend is even more pronounced in new-home construction, pricing and sales. The media eats up those kinds of "dire" numbers.

But there's plenty of good news in the NAR statistics, too.

Its forecast anticipates the federal funds rate during 2008 will average about 3 percent, compared with 5 percent during 2007. The result? Lower mortgage rates. The average mortgage rate for a 30-year fixed-rate loan, according to NAR, will be about 5.8 percent in 2008, compared to a 6.3-percent average last year. Nothing increases home-selling and -buying opportunities like appealing rates.

Just as importantly, a slide in the sale of existing homes appears to have stopped. NAR chief economist Lawrence Yun reports the organization's measurement of pending sales of previously owned homes during January 2008 was unchanged from the previous month. NAR members are seeing more shopping activity too. “This additional sign of a stabilizing market is encouraging,” Yun says. The result? An increase in buyer traffic looking at homes usually translates into more contract offers.

So the smartest, best, most enterprising agents are working hard now to position themselves for the up-turn that's closer than the media foresees. Leader's advice is to get out of the office. He thinks "success is found on the streets," and advocates shoe-leather networking ("door-knocking is back, bigger and better than ever"), persistent contact with spheres of influence, and staying positive.

"Let people know," he says, "that this is a great time to buy or sell a home for those who understand the market correctly."

(This article was originally published in a newsletter for Polley Associates)