Once in a while, I like to look at the facts to see if they relate at all to our perceptions. One of the ways I do this is by comparing market-to-market numbers to compare the reality they present against what we hear and think about real estate markets in general.

Perception 1: "We are in the middle of a severe downturn in real estate and prices are dropping by the minute."

Perception 2: "It is harder to make a living in residential real estate than any other time in the last XX number of years."

Perception 3: "Buyers just are not buying - they are waiting for some mythical bottoming out of the market."

Facts, as based on first half year sales reported to the BayEast MLS (my home MLS):

Sales data for homes sold between Jan. 1 and June 30 2008 

Sales data for homes sold between Jan. 1 and June 30 2007

What we see is the following:

 1. Sold listings are up about 40%

2. Median Sales Price is down about 26%

3. Total closed dollar volume increased by some $5+ million.

4. List vs Sold price numbers indicate a slight increase in the price gap (between ask and sell)

5. A lot more that I would probably get wrong - I am obviously not an economist. (but you can see that)

OK - so what does this do to our perception vs reality question?

Reality 1: Yep - prices have dropped significantly (maybe still are)

Reality 2: If you call an additional 121 sales harder to make a living. . . what more can I say?

Reality 3: Buyers are buying! They did so 390 times in this case - myth busted!

So the bottom line seems to be this: Sellers need to be realistic about their pricing. Buyers are buying, but for a significantly lower price than a year ago. Realtors need to stop listening to the pundits and go out there and help sellers sell and buyers buy. They are doing it with, or without you.