Copy for Real Estate Guide Column for 1-16-09

REAL ESTATE PATTERNS
By Ken DuVall

THE BEST OF TIMES!

We need hope in these difficult days. I’m a guy who believes there’s always a pony in the manure pile if you just dig deep enough. It depends on which news reports you read. Fortunately, we’ll start getting good news again after the inauguration next week when the media begins supporting “The Bamster”. We can sure use some.

There certainly isn't much to miss about 2008- other than our savings, our homes, our jobs, and our faith in our financial/political systems! And cynics say there isn't all that much to look forward to in upcoming months. I look forward to otherwise, as do some 70% of the top national money managers. Yet more tales of corruption, abuse, and fabrications from those in the halls of power seems inevitable. Does anyone remember the fall of the mighty Roman Empire 2000 years ago? Lesson: we better clean up our act fast.

Yet “Housing Markets Will Roar Back in 2009”, proclaims Alexis McGee, real estate expert, educator, and “Outlook” president based in Fair Oaks in their latest report. “The nation’s foreclosure hemorrhage has finally slowed and 2009 should see a significant decline in foreclosures as buyers return, finally pushing home prices back up and fueling a real estate recovery.” While optimistic, that remains to be seen. Encouraging: interest rates are at a 40-year low.
“Recovery is underway. Affordability is back in the housing market,” McGee continues. “In 2009, housing will not only recover, but we’ll see buyers leap into this market in droves, depleting our housing oversupply, and actually put higher price pressures on the market. I can see prices rising again in 2009. California is a great example of what’s happening now and what lies ahead for the housing sector.” From his lips to God’s ears! Even stock brokers are saying this is the time to start buying again.
But if you think about it, this may in fact be the best of times. When in modern history could you have pointed to an economic bottom with such assuredness? I would guess we’re at it, or very close. Once you do hit bottom, there’s no way to go but up. We've cleaned the sewage system in the finance industry. We've purged the subprime loan debacle. We've exposed the biggest Ponzi scheme ever. We've discovered politicians' affairs, payoffs, bribes, and conflicts of interests. The price of liberty is eternal vigilance.

Other things we learned last year: Thou shalt not make “liar loans” lest ye topple the country! Real estate prices don't always increase every year. Financial records too good to be true probably are. Making products nobody wants doesn't make good business sense. We know we must care for our planet to protect ourselves and our future. The important thing in this world is not so much where we stand as in what direction we’re moving.

I say this could be the best of times simply because the worst of times may be behind us. We’ve had a major wake up call. Now we must counter the massive pessimism and paralysis out there, restore confidence, and hopefully live happily ever after. Miraculously, everything somehow gets handled. We will once again arise from the ashes. Amen.

P.S. On the lighter side, a true story in the news: a Chicago restaurant is now offering a “’Bleeping’ Blagojevich Burger” that comes with a slice of baloney, and- the price is negotiable!!

Ken owns Ken DuVall & Associates, REALTORS at 3rd Ave. & Mangrove in Chico. Ken was the 2001 President of the Chico Assn. of Realtors and the 1995 Chico Realtor of the Year. See Chico MLS listings and all my columns at www.KenDuVall.com. Call Ken at 345-3700 for all your real estate needs. Free consulting.