“Real Estate is Back!”

Maybe.

I remember in the early stages of the boom, there were whispers of a ‘bubble‘. By 2005, it had turned into a dull roar. In 2006, economists were shouting at us while many of us were turning a deaf ear, convinced that this market was an exception. I know – not you - just the rest of us.

Today, I’m hearing whispers of a different sort. There are signs (albeit very small ones) that there is a light at the end of the tunnel. The Wall Street Journal reported today that a CNBC ‘talking head’ announced that “Real estate – it’s back.” This remark came on the heels of the Dow Jones Equity All REIT Index’s rally which ended up 12% today.

These are interesting indicators to be watching, but I’m not suggesting we throw a party by any stretch. The REIT index is still down 42% for the year. And as WSJ’s author Aton Troianovski points out, the commercial market is exceptionally slow. Local Orange County is no exception and commercial brokers are checking their ring tones to make sure phones are still in good working order (I know – been there – 4th quarter ‘07).

Today there are whispers of a bottom, small rays of sun poking through the dark clouds. It will be interesting to see how long it will take for these whispers to result in a true shift.