Stefan: What is your opinion on the current state of the real estate industry? When do you expect that things will pick up again? Thanks!

Yes, even in our pricey San Francisco Bay Area, we are seeing a huge run up of inventory. Muc of that in the East Bay is due to folks who had to have the current "new model" homes in the Brentwood,Antioch, Pittsburg area. Now the chickens are coming home to roost. Neg Am mortgages, 2 hour commutes, the feeling of isolation from the San Francisco area are all contributing to the 2,500+ homes on the market in that area. I look at the symptoms as those of the new car buyer; new and shiny, who cares what the monthly payments are. Although our market has slowed significantly, we still manage 10-12 sales a week in our Walnut Creek office. When interviewing sellers, the question of "Do you want to sell or just be in the market?" is often the determining factor in whether we wil take the listing. Our market is very neighborhood centric and the multiple offer, although much rarer now, still occurs. Like the last three debacles, we will weather this one as California is historically short 200,000 to 300,000 housing units a year.

No Real Estate bubble in plain view says Gakwaya The naysayers have been preaching the bursting real estate bubble in Orlando for the past year now, and, with relative gusto I might add. Meanwhile, all evidence conspicuously appears to be contradicting this belief as nothing more than unfounded pessimism by a large majority of the myopic in a market that is indeed still experiencing explosive growth. According to the Orlando Regional Realtor Association 21,260 homes were sold in Orlando during January, 2005 through to July, 2005, with ‘05 being a record year for Orlando. In 2006, housing sales actually boosted 0.7% to 21,916 homes sold by realtors during the same time period, displaying evidence Orlando is still a viable market showing no signs of that pesky bubble bursting. Nonetheless, home sales in July 2006 did drop 26.5% compared to that of July 2005. Century 21 Real Estate associate Chantal Gakwaya says, “After the hurricane of growth the previous two years have represented, it would not be anomalous for the market to exhibit frequent fluctuations that at first sight appear to be extreme and signaling perceptible doom.” Ms. Gakwaya further went on to say that the amount of homes for sale on the market is peaking over 19,000 homes in metro Orlando for July, 2006. Compare that to statistics from July, 2005 and there is a differential of almost 15,000 more homes competing to be sold. “I have no doubt in my mind the excessive inventory on the market, the recent drop in interest rates and competition spurring the desperation of sellers will represent a Buyers Market over the next six months or so,” says Gakwaya. “The same quantities of buyers are out there and families are still relocating to Orlando by the droves. The big question is how do we compete for those buyers to preview our client’s homes? Real estate associates and especially FSBO’s will sink or swim depending on their personal and financial investment in advertising their homes for sale,” says Gakwaya. Gakwaya goes on to say, “All I can say about the Orlando market is, competition is high but there is no bubble in plain view, at least not in the foreseeable future.” For more information about the Orlando Real Estate market you may contact Ms. Gakwaya at www.Orlando-Real-Estate.biz

The market has definitely stalled. There are people giving away their cars and boats as an incentive to buyers. What a change from a year ago. Who has heard of other interesting seller incentives?