I know they were all alive just seven years ago when terrorism cost the lives of three thousand American citizens. That headline goes beyond sensationalism. It is rude and insensitive. 

The article goes on to say that one in three members of the NABE, “…Said the housing boom can be described as a ‘serious National bubble.’ Then later in the article three in four said they would “buy a house today if they intended to use it as their primary residence.” 

Would someone please tell these academic fools that housing is local in nature? While many major markets suffered and are suffering from the overzealousness of investors followed by the overzealousness of foolish subprime lenders, there are many markets that are healthy and many more that are suffering a softening but nothing close to a collapse. 

These gloom and doom headlines supported by a minority of questionable economist opinions feed the problem they are describing. While the facts support the opposite conclusion. Even the economists own research supports the opposite conclusion. 

In the same article, “Asked to look five years into the future, 42 percent expected US home prices to remain flat, 41 percent said prices would rise.” Then how did 34 percent of the same group call this a bubble that is fed by a threat bigger than terrorism.

Let’s give credit where it is due. “59 percent still say there is no national housing bubble, only significant local bubbles. Another 8 percent say there’s no bubble at all and that the market is functioning correctly.” 

Hooray for those groups. They got it right. There are some local bubbles where there were hundreds and thousands of development parcels and homes developed and built in anticipation of future sales and the sales that were feeding that demand was investor speculation (Boise and Sarasota to name two).

In late 2005 and through 2006 the investors realized that the boom was being fed by their own demand so withdrew. This left tremendous inventory in some cities or areas of cities.

Unfortunately, in 2006 this was immediately followed by the secondary market lenders realizing that they had allowed a foolish combination of underwriting standards for the previous five years or so. They were buying loans that allowed buyers to have both, little or no down payment and marginal credit. How this happened (and who should be prosecuted for it) is a mystery that will likely remain unsolved. 

The result was in some communities around the country, particularly where there were high priced homes and with less sophisticated buyers; many of these mortgages were used to purchase homes. That created additional pockets of excess inventory which stalled prices in those areas.

Now the majority of lenders loaning jumbo loans, over 417,000 have stopped funding these high-end loans for some period of time. This will further increase inventory and dampen prices in some areas. 

Notice the language, dampen prices in some areas. Most of the country is experiencing a normal buyer’s market that normally follows a long healthy seller’s market. 

The latter group of economists put it perfectly. The market is functioning correctly. In 1986 after two to three years of a soft buyer’s market not unlike what we are experiencing now (although it was driven by different causes) there was a long strong period of a healthy seller’s market with steady appreciation. 

There was a momentary softer buyer’s market around the Gulf War in 1991 (although not caused by it) followed by over a decade of a healthy buyers market that lasted until 2006. If we learn from history strong seller’s markets last longer than softer buyer’s markets. 

So again the economists got this right. The same article said 58% of the economists predicted a ‘meaningful’ recovery in U.S. housing markets before the second half of 2008 or in the second half of 2008. The majority of the other 42% predicted the recovery in 2009. 

This is completely consistent with history. This two or three years of soft buyer’s market with slightly flattening prices will likely be followed by five or more years of a healthy seller’s market with equally healthy price appreciation. 

REALTORs® all learned in their first Real Estate class that the market is driven by supply and demand. So as long as there is an increasing population of people with reasonable or better incomes, the demand will keep the market healthy. 

Add to that the fact that the Federal government repeatedly states that they realize that the Real Estate market is critical to the health of the economy and they will do whatever is necessary to keep mortgage money available. 

It all adds up to a principal residence continuing to be the safest and smartest investment for a person living in this fabulous nation. (Just be careful of areas that have experienced rapid appreciation for more than twenty-four months. There could be a windfall or just a fall looming.) 

If you are associated with Real Estate, please separate the sensationalism from the truth. If you are in most communities in this country everything, is pretty normal.  Prices are appreciating a little slower but still appreciating. Houses are on the market longer. Buyers are fussier. Yes, it is tougher to sell Real Estate. But you still have one of the best jobs in the world with more personal freedom and opportunity for success than any other business person or professional on earth. 

If you are in one of those tougher markets, my heart is with you. You do have an uphill battle for another twelve to twenty four months. You have my strongest wish that you can survive and succeed through this.

I love this business for what it provides to our society, the people in it, and the strong bright professionals that make me proud to be a part of it.

Rich Levin is a nationally known coach, educator and speaker. Rich has been in the Real Estate Business for over 30 years with the last 15 dedicated to coaching and speaking. His specialty is working with productive Real Estate Agents and Brokers taking them to their highest levels of production and performance in their business and in their lives. He is a regular contributor to various Real Estate publications and has spoken at events from small offices to NAR convention as well as coaching top Agents from across the country. He is CPBA and e-PRO certified.

Contact him at 585-244-2700 or visit http://www.RichLevin.com. Ask Rich a question at http://www.AskCoachRichLevin.com�

For many this past year has been difficult. Many Agents’ have left the Real Estate Business and others are struggling and probably thinking of leaving this wonderful business. But some Agent’s are having their best year ever. How do you ask? The answer is that these Agents simply shifted their state of mind. You may think that this sounds hokey but it is true.  It is grounded in medicine, how your body works, your psychology and how your mind works is critical to your success. 

By regularly applying the following simple process you will shift from concern and procrastination to focused, positive accomplishment. 

There are three basic ways to shift your state of mind.

First, do ten to twenty jumping jacks to get your blood flowing. 

Second, as you do the ten to twenty jumping jacks I want you to say the following, “Today is a great day for my business.”

And third focus your thinking and focus your mind on what could happen that day to make it a great day.

Think about this. You are sitting at your desk.  You are bored, or tired, or feeling lazy.  Your shoulders are slumped your mind is focusing on some aspect of your business that reinforces your negative mood.

Then, your mobile phone rings and you can’t exactly remember where you put it so you run around to look for it.  You find it, slightly out of breath. 

The person calling is a past Client who tells you that he/she is getting married and wants you to list both houses and sell them a much bigger one.  The new spouse is independently wealthy and not only are they going to buy a big house from you but they are willing to be completely cooperative on price because they realize the nature of the market.  Plus they want to invite you to the wedding and introduce you to all the people in the spouses sphere as their REALTOR®.

After that call your state changes from a mild depression to focused, energetic and enthusiastic.  It happened in an instant.  And it happens because three things changed.  First your physiology changed as you ran looking for your phone, then your focus changed as you got the great news.  Then as you understood the nature of the call the meaning of the news kept expanding and getting better in your mind.

You don’t need this example to really happen although it would be nice, you can change your state of mind by simply doing the above three steps.

Now that you have started to shift your state of mind you need to put steps into place to reach the goals you set.

Create a strategic business plan. What I mean by that is create a plan that is both realistic but also includes the steps to accomplish the goals that you set in your plan.

You accomplish this by first committing to spend thirty minutes a day for a maximum of fifteen days on your business plan. This creates the habit. After all, it is the health and the success of your business we are talking about here. 

As you start your day powerfully day after day this leads to more successful days, as those kinds of focused days, those days full of accomplishment, stack up day after day your business rises to its next level. 

Begin your habit of taking five minutes a day before you open your e-mail each day, what I call five to thrive. Then take thirty minutes once per week before you open your e-mail to add focus power and leverage to your day and your week.

In those five minutes before you open your e-mail you are going to do three things.

1.     Record new appointments, sales and listings that occurred in the last day … and as you do … look at your numbers for the week, the month and the year.

2.     Consider what your priority project is for the week and where you are in relationship to its accomplishment.

3.     Choose the action you will take that day to reach your appointment goal for the week and to move your project for the week to completion.

Then once a week take a half hour instead of five minutes.  Choose one day of the week.  On that half hour day, in addition to doing the previous three things; you will also do the following three things.

1.     Choose a priority project that would be of greatest benefit to you.  Or look at what project or system you are working on and your progress over the past week.

2.     Choose what you want to accomplish on that project or system for the next week. 

3.     Schedule time in your calendar to do the things toward the completion of that project that will move that project forward or get it complete.

Never give up on this habit.  If you do nothing on the project or haven’t even chosen a project, never give up.  Just keep that weekly appointment with yourself.  I promise you that within a week or two you will both have a project chosen and you’ll take action toward it.

I just mentioned a mantra of mine; Five to Thrive.

F-Focus
I- Insight
V- Vitality
E- enthusiasm

The five minutes a day are going to give you focus all day, insight into your business that you have never had before, vitality which means energy for the day and enthusiasm for your business and toward the people you encounter throughout the day.

Now, this is not for everyone.  Some of you enjoy your lousy attitudes so much that you don’t want to change it.  You are so certain that your days can’t be that good simply by taking responsibility for your state of being.  And you may have other reasons you discount these ideas. 

For those of you committed to having a great business and a great life, put what I have written here into practice starting today. 

You have my sincerest wish for a successful year. 

Rich Levin is a coach and speaker whose focus is teaching Agents to understand and control their business. Through that understanding achieve exceptional happiness and wealth in their life. Take control of your business, register for a 2009 Strategy Session. Rich is President of Rich Levin’s Success Corps Inc.  Contact him at 585-244-2700 or rich@richlevin.com.�