The Case Shiller report this week has come out and stated the obvious, Real estate is still on the decline. No one wanted to believe it and many are calling it a double dip. Double dip?  I must have missed the uptick because all I remember is some artificial demand created with a tax credit that was offered last year.

The reality is there was never a true reversal or recovery. I hate to jump on the “end of the world” band wagon but for now real estate values are a mess they are going down and they will continue to do so. There are too many fundamental factors in place for there to be any real recovery at this time in most areas that have been affected.

Many home owners were tricked into thinking that owning a home was the American dream.  I have been saying for a few years now, all that rapid appreciation only fooled many unqualified buyers into believing that dream was a reality. In fact they were never qualified, but more enticed to own by the rapid appreciation of the times. Unfortunately there was a lot of misunderstanding of the full concept of home ownership resulting in disaster.

Owning a home is more than just paying the mortgage. It is the responsibility of keeping that home in good working order to maintain its value. America had and still has an inflated level of home ownership since many of those folks can no longer afford the houses they live in.  But there is a growing number who woke up from their nightmare that started as a dream and realized they just don’t want to live in that home anymore; they need a way to get out.

Here is the point: The knife is falling don’t catch the blade. Currently 27% of real estate transactions are short sales.  40% are distressed asset sales (short sales and REO).  Looking at the fundamentals and the way the government has been trying so unsuccessfully to hold the market together,  it is becoming clear that that we live in the Era of of the Distressed Asset Sale.  Look for those numbers to exceed 50% in the very near term – such as the next 12 months.  Lenders are seeing it and to them the only way out without losing a larger portion of their investments is to embrace and accept short sales as the preferred method of liquidating their non-performing and damaged portfolio of loans.

Many real estate professionals – particularly ShortSaleSpeedway users have already realized the following:  To thrive in this Era, you need the right tools and a lot of persistence. To homeowners: If you need to sell and you have equity then the best way to get the most out of that sale is price your home correctly today; don’t give an over-priced number a chance.  You lose money every day your home is overpriced.  If you are underwater, don’t wait.  Contact your lender and try to modify your loan, or get a legitimate professional to help you.  If that doesn’t work get a qualified real estate professional to get it sold as quickly as possible.  In a few years when the market (and your credit) recovers, you can become one of the real home owners again.