The National Association of Realtors is reporting that home sales for the month of July were down 9% from the same period a year ago. Add to this the recent triple-whammy in the financial press of dismal housing starts, housing permits and mortgage lender meltdowns, and you can guess what we expect to see when the August numbers are released next week.

A closer look at the real numbers reveals light at the end of the proverbial tunnel.

The Commerce Department reported both housing starts and permits down sharply, but simultaneously, new home sales rose 2.8%. Do the builders see something we don’t?

The financial press certainly thinks they know it all. Their stories this summer revolve around more than 100 mortgage lenders having closed up shop or declared bankruptcy. People arriving at the closing table to find that their lender has disappeared. Foreclosures are up. Buyers waiting for prices to drop, mortgage rates to drop, and the economy to improve - all at the same time.

But how bad is it, really?

“For buyers able to qualify for conventional financing, there are ample opportunities in the current market,” said Pat V. Combs, President of the National Association of Realtors. “Availability and pricing of conventional loans are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans.”

The financial press has been ignoring the vast majority of lenders who have been quietly funding loans all along, from FHA lenders to neighborhood credit unions, who stayed away from the subprime market. Bad news sells newspapers and television advertising, but the fear seems to have taken on a life of its own - much to the detriment of even the stock market in recent days, down more than 5% in the last several weeks.

So, where’s the good news that the Third Estate has been ignoring? Take your pick! All bode well for our local real estate market:

• 1. Interest rates are on their way back down. Nationally, we’re seeing rates beginning to hold steady at May levels.
• 2. Builders have cut prices and added incentives. Here on the Grand Strand, Centex and Portrait Homes have cut prices and Lennar is now advertising in-house mortgage rates as low as 5.5%.
• 3. Nationwide unemployment claims are down this week, but local unemployment is much lower and has remained steady.
• 4. Looking for a mortgage? Primary lenders like Bank of America and Wachovia, as well as most FHA lenders and credit unions, are having no trouble funding mortgages for qualified borrowers.

Just remember… bad news in the press does not always equate to bad news in your neighborhood.

Interest rates paid on government-backed three-month Treasury bills dropped more today than in the wake of the September 11th terror attacks, and just under the plunge during the stock market crash of 1987.

T-bill yields have been falling for five straight days. Scared investors have been pouring money into the ultra-safe government-backed debt instead of mortgage-backed securities. The three-month T-bill fell 82 basis points (100 basis points equals 1%) to 2.94%, the largest drop since October, 1987, when the T-bill fell 85 basis points on the day the market crashed. By comparison, the T-bill dropped only 39 basis points on September 13, 2001. Today’s decline brought the yield to its lowest point since May of 2005.

A majority of insiders now expect the Fed to cut rates in the next 30 days, even after they cut the Fed Funds rate from 5.75% to 5.25% last week, between meetings. Interest rate futures traders predict a 100% chance that the Fed will lower rates by its next meeting on September 18th. 86% of those bets are for rates to drop to 4.75%, while the balance is for a cut to 5%.

Some experts predict this quick 1% drop in Fed Funds rates will precipitate lower mortgage rates as well.

Wouldn’t that be great news?

Which two words are more popular, according to search engine Yahoo - Lindsay Lohan or Myrtle Beach?

Yahoo reported last week that the term “Myrtle Beach” was the top hit on its search engine, ahead of top searches like Lindsay Lohan and Britney Spears. In addition, AOL reported that Myrtle Beach is the most-searched beach in the United States. And if that weren’t enough, a national survey ranked Myrtle Beach as the second most popular family summer leisure destination, right behind Orlando, Florida. We’re in good company!

“All of this positive attention could encourage more visitors to consider Myrtle Beach,” said Brad Dean, of the Myrtle Beach Chamber of Commerce. The Hard Rock Park and The Market Common, both scheduled to open next spring, could also be generating the added interest.

Apparently all of this interest in Myrtle Beach is working. The Myrtle Beach airport reported 13.3% growth in the number of passengers during the month of July, compared to the same month in 2006. It’s the 11th consecutive year of growth at the airport. Much of the traffic increase can be attributed to the local growth of Spirit Airlines, and new local startup Myrtle Beach Direct Air, which has more than doubled its monthly passenger numbers since starting service in March.

All of the reasons folks have purchased real estate here are now stronger than ever, and Myrtle Beach is now more popular than ever. Add in a buyer’s market, and you’ve got the best of all possible worlds!

Despite what you may have heard or read, the real crisis in the mortgage lending world isn’t being talked about at all. But speak with anyone who has applied for a mortgage recently, and you’ll hear that consumer trust in mortgage bankers, brokers and lenders has fallen sharply. Mortgage advertising and lead generation activity is turning consumers away in disbelief. And, worst of all, this negativity may be putting the entire industry’s reputation at stake.

Harris Interactive recently conducted a poll of 2,383 adults. The results were shocking, to say the least. 22% were convinced that mortgage advertising and marketing is not credible, or even downright deceptive.

During the housing boom, the world of mortgage lending experienced unprecedented growth, but unfortunately, it also opened the door for historic levels of predatory lending, fraud and financial crimes that led to a slew of lawsuits and organized crime investigations. Some consumers are starting to use words like conspiracy, fraud and collusion in their everyday conversations about mortgages, and this is sending up huge red flags in the corporate offices of many lenders, already feeling the heat for the growing foreclosure problem on top of the subprime meltdown.

Alas, there seems to be no good news for mortgage lenders these days. In their efforts to fix the problems, they’ve had to raise interest rates, which in turn pushes monthly mortgage payments higher and higher - and then finally out of reach for more and more consumers. These rate hikes in turn affect adjustable mortgages, which has pushed an ever-growing number of borrowers into foreclosure.

The industry has a long way to go to regain the public trust as a whole. Individual mortgage bankers and brokers will have to spend much more time and effort explaining to potential borrowers what they can afford, what they can expect, and spend more time guiding their customers through the loan process. Those dubious individuals that make empty promises, or don’t deliver on their word, will find their days numbered.

But perhaps there is one bright spot here, after all. Mortgage professionals who are able to adapt, flourish and succeed during this crisis will discover that they have created a network of consumers and real estate professionals who trust them and their companies, and who happily refer others their way.

With the cat yowling in the ‘protective’ carrier (for whose protection?), I was about to leave the house today when the phone rang. It was the veterinary office in full apology mode. It seems that there was an emergency, and they were calling to inquire if I would like to reschedule our appointment so as to avoid waiting “up to an hour” this afternoon.

Think about this. With one well-placed 30-second phone call, this business (a) avoided a disappointing customer experience (waiting around for an hour); (b) allowed me to better prioritize my time (rescheduling, even at the last minute); (c) demonstrated their complete understanding that my time is just as valuable as theirs; and last but not least, (d) created in me a customer for life.

Now, you would think that in a service industry with one of the highest dollar amounts per transaction, that every real estate agent on the Grand Strand would provide equal, if not better service than a small veterinarian’s office. But just this morning I received a voicemail message from local real estate agent who wanted to show one of our listings. Unfortunately, she did not leave her full name, didn’t leave a telephone number for me to call her back, and had never heard of the property she wanted to show - and had no clue where the property is located. One can only wonder about the level of service she provided to her customer!

If you are looking for a great veterinarian on the Grand Strand, please visit Seaside Animal Care in Calabash. If you are looking for similar service from a Real Estate company serving North and South Carolina, look no further than Price & Company Realty. We recognize and appreciate great service because our wonderful clients deserve nothing less.