Last week I got a call from a reporter for a national real estate web site. They asked me why we were not blogging about the ‘rosey side’ of the market.

You know…the NAR dogma…’we are scratching at the bottom’ type stuff.

This reporter was confused by why we would want to pass along info to all of you that wasn’t more optimistic about housing. She thought it was not in our interest (because

we are in the business of selling education to agents) to not come off more….as she said…’rosey’.

Good question that we have given a lot of thought to. The answer is simple. For us to simply pass along the overly optimistic view point about housing would mean we weren’t doing what is best for you…our students. The fact is that this is the worst real estate market in the history of the US. AND, its only getting worse. There is no bottom in sight and even after we get there expect years before we see home prices return to peak bubble prices…if ever. That means that there are millions (and millions) of home owners upside down in their homes. This will lead to more hardship.

Lets be clear about this next point…read every word of what I am about to say to you..

There has never been, never will be a better time for you to be selling real estate. Now, with that said if you won’t learn what is required in this market you wll fail. You have no choice but to learn how to do short sales, how to work with REO properties. You have to learn the new ways to prospect, the new skills that this market requires. If you don’t you are making the decision that you won’t be in this industry for much longer.

And thats ok.

As we have blogged about before…maybe this is a great time for you to actually get out of the real estate business. There is more to life than selling homes.

HREU students and future students. Embrace the ‘bad news’. When you hear the bad news about housing…smile. Why, because you have the tools (or are learning now) to not just survive in this market but, thrive in this market. You can help more people and make more money now vs the previous market. We know this to be true because virtually all of our HREU Grad students are having their best years ever.

Speaking of bad news (remember, smile) here is something that was recently published from WSJ.

Yale University economist Robert Shiller, pioneer of Standard & Poor’s/Case-Shiller home-price index, said there’s a good chance housing prices will fall further than the 30% drop in the historic depression of the 1930s. Home prices nationwide already have dropped 15% since their peak in 2006, he said.

“I think there is a scenario that they could be down substantially more,” Mr. Shiller said during a speech at the New Haven Lawn Club.

Mr. Shiller, who admitted he has a reputation for being bearish, said real estate cycles typically take years to correct. Home prices rose about 85% from 1997 to 2006 adjusted for inflation, the biggest national housing boom in U.S. history, Mr. Shiller said. “Basically we’re in uncharted territory,” he said. “It seems we have developed a speculative culture about housing that never existed on a national basis before.” Many people became convinced that housing prices would increase 10% annually, a notion Mr. Shiller called crazy.

Mr. Shiller, who said it’s difficult to forecast prices, endorsed legislation proposed by Sen. Chris Dodd, (D., Conn.), and Rep. Barney Frank, (D., Mass.), that would allow the Federal Housing Administration to back as much as $300 billion in mortgages for struggling homeowners. Servicers would have to agree to take a loss on the existing loans, while borrowers would have to show they could afford to make new payments on their refinanced mortgages.

Readers, care to chime in, do you agree with Mr. Shiller?