When there’s a need, there’s a market

I often wonder what everyone expects from a real estate market.

Is it the number of sales or their value? When average-priced sales occur does that mean the market is bad, or is it only when huge transactions occur that consumers get a feeling of confidence, excitement, urgency and then react? What is the expectation to arrive at a great market?

Regardless of the expectation, the market is good if people are engaging it on any level. Good, bad or otherwise, if people are selling and people are buying then the market must be good, right?

Otherwise what would you call those consumers who are selling and buying when the consensus is that the market is down? Be careful how you answer that. I call them consumers with a need.

No matter what we say or hear, it was evident that the real estate market has suffered a slowdown, but it has not slowed to a point of stopping. So in reality, when there is a need, there is a market.

I pose these questions and answers to point out that those consumers who have bought or sold feel they made the right decision at the right time. Therefore, the market is active and continues to move forward, even if sales are below expectations set at the high point of the economic surge.

The problem is we get spoiled by growth and have no patience for recovery, yet the market has recovered somewhat, and in some cases people feel they’ve made the best deals in the worst times.

However, another view is, if no one was selling or buying, then we have problems. So given the spoils of the past boom markets, and the overwhelming opulent spending and over-extending, is it just waiting for the moment when consumers can again enter into the property business — that they can again create that false feeling of security? Or is it when everyone wakes up from the bad dream and decides that buying real estate is not a game but a serious investment?

I often ask myself these questions because no matter where I go I am asked what I think, and when is the best time to jump into the local market. Those of you who know me understand that my optimism is infectious, and I look at the market every day as a great opportunity.

From the corporate, brokerage and business side of real estate, a great market is considered a profitable market, but is that necessarily a bad market for consumers if they are not profitable? No, but consumers are affected by the media’s overview of company’s profitability.

Just last week, the national report for new homes were released and the news media reported that new home sales were down nationally — 14% over the same time last year.

OMG, as people around me gasped, I was appalled to hear this. Then the media showed video of resale homes with for sale signs on them from real estate companies. This television news report was seen over and over during the same day where consumers were led to believe that the report was referring to resale homes, when in fact it was regarding new home sales.

The media misrepresented the report, but most consumers do not know the difference, so therefore they believe the report meant that the real estate market in general was down 14%. What you hear, what you see and what you think are driven by inaccurate reporting. The right way to report this inaccurate overview was to view new homes projects and not resale homes.

And the most important fact of all is that it is clearly only in certain areas of the country, and not always equal from coast to coast, yet the report alleges that all areas are affected, when in fact they are not. New homes in Orange County are selling. Maybe homes in mid America are not but the West Coast is happening!

I hope this clears up the market review on New Homes and provides a different view.

Can you remember the best real estate market ever? When consumers didn’t care how much the property was and they were overbidding and buying at any price regardless?

So let’s review: Buy, engage and invest in real state any way you can or miss a great opportunity. It cannot be assessed by consumer confidence, inaccurate reporting by inexperience broadcasters and news company’s, it can only be assessed by individual needs and results.

Not one person that purchased a home in 2000 would sell you their home or property at the same price they paid for it in 2000. Imagine prices in 1995. Now imagine yourself in 2020 saying what a great purchase you made even if full price in 2011 because no matter what happens we will never experience a market recession like this again and the only way left to go in my opinion is up.

Make a decision and move forward you will not regret it. As always when considering your real estate needs consult with a professional in your area.

TOM IOVENITTI is the former president and chief operating officer of Coldwell Banker. He lives in Newport Beach.