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.