Sometimes its hard to know if the glass is really half full or if its half empty.  Being an optimist myself, I’m usually looking for the half full point of view. 

Each morning before writing a new post I read real estate headlines and stories from all across the country.  Usually there are a few optimists out there.  Today seemed a little different.  MSNBC headline covers Countrywide’s loan delinquencies troubles.  Inman News headline states housing demand falling faster than home inventory.  CNN money headline housing: no room for bulls. Real Estate Journal headline states new blows hit housing industry. 

"Oh my, that all sounds bad!"

Is it really half empty?  From the sound of those headlines the real estate market’s glass is completely empty.  But I refuse to believe its all bad.  Take for example this headline Mortgage rates fall below 6% on MSNBC.  Now that’s good.  Rates haven’t been below 6% in almost two years.  There is even talk that the Federal Reserve Board may drop rates again at the next meeting to head off the big "R" word.  Yes, recession.  Recession talk heated up this week when the new unemployment figures came out higher than expected.  That’s another headline for the glass is half empty column.  Read about the economy if you don’t mind being discouraged. 

If rates are cut again by the Fed and they go into the low 5% range.  Houses become very affordable.  Check out this mortgage calculator from Bloomberg.com. 

The mortgage payment on a $150,000 home (Beaumont’s median home price) at 5.5% is less than 900 per month P&I.   That gets pretty attractive for anyone still paying rent or anyone wanting to move up to a home a little bigger than the one they are in now. 

Even though its hard to find the silver lining sometimes, just remember when all the national media starts saying the same thing that is usually when things are about to change.  Who doesn’t remember the stock market headlines of 2000 when the media was still touting how full the glass was.  That was right before the stock market glass was not just emptied it was dropped on the floor and shattered into thousands of little shards. 

So I invite you to share your thoughts.  Is the glass that is the real estate market full, empty or about 1/2?  Let me know what you think.