Q: The market has changed, but it is not as terrible as some would like us to believe, are we really in a bursting real estate bubble?

A: If you'll notice, its the stock-market based cable TV programs that have been aggressively trying to create the idea of a bursting real estate bubble. They want people to buy stocks, not real estate. We still enjoy a big demand for housing in the Southeast. We are in a buyer's market, with more than 6 months supply of inventory, but that means it is a great time to buy real estate.

My opinion is that as long as interest rates stay low, the higher inventories will start to deplete, pending sales will rise and prices will go up. Last year we experienced one of the best real estate markets in our history.

Our area is competitive nationally. Let's face it, people want to live here. Many snowbirds consistently declare that they are able to purchase more house for the dollar here. And home ownership still remains a way to build long-term in this country.

In the past; housing stayed barely ahead of inflation, but it has done much better in recent years.

Consumers need to take advantage of the low rates and increased inventory before market conditions change. Our year-end figures showed a steady sales pace for single-family homes, increased inventory, and some continued increases in average and median prices.

New home sales were good in some areas while others found builders adding many extras to entice buyers. Spec homes experienced a cut-back because of over-supply, though.

Established condo owners are finding themselves with more and more empty rental properties as the number of new condos with incentives lure renters into becoming owners. We may see many more of these established condos coming on the market as well.

Now that we are experiencing a stronger buyer's market, I also observe more agents become trained as accredited buyer representatives to better serve the buying public.

Whether it is a buyer's or seller's market, there are different strategies used in each market to adjust to supply and demand issues. I do not see the bursting bubble that our stock market friends keep wishing on us.

Q: The real estate market is constantly changing and we and we bounce from having a seller's market to having a buyer's market and back again. How can we sell our house when there is so much inventory?

A: We've experienced an increase in listing inventory and it is taking longer for homes to sell. When you come from a fast seller's market, it requires a shift in strategies for you to sell your home. Most important is communication with your agent. It is important for you to understand the new marketplace dynamics.

Many seller's still have expectations based on past market conditions and are probably overpriced. I still believe that overpricing is the leading reason a property does not sell.

Don't get upset with your agent but make certain they look at the facts and react and consult with you accordingly. Remember that "time is money," and the longer your home sits on the market, the more it costs you. Be sure you have an updated competitive market analysis. Know the market absorption numbers, average days on the market and the amount you are losing each month the house does not sell. You either have to wait for the market to get to you, or you have to go to the market. Don't be afraid to make the proper adjustments in price.

Your agent should know where the buyer's are coming from and have a plan to access that pool of buyers.

Today, Internet marketing is attracting many buyers. More than 75% of buyers used the Internet for their search last year, according to a study by the National Association of Realtor's, so be sure you have the Web visibility.

When the average time on the market lengthens, which is typical in a buyer's market, it is harder to justify using low-return/high-cost advertising that isn't bringing in high prospects or buyer leads.

Some higher return activities are:

• Open Houses - Make sure neighbors are invited and if possible do a neighborhood tour to share marketing costs and increase traffic.
• Merchandising the home can make a big difference. Make sure that when it hits the market it is spotless and shining and all repairs are done.
• Advertise in small, targeted media. Target the most likely potential buyer and put an ad in a publication they would read, such as a local or a magazine for seniors.
• Keep a positive attitude. There are still buyers buying. Don't get caught up in a "nothing is selling" frame of mind. You will probably wish it into happening. A positive seller and a positive, creative agent together create opportunity for success.

Jeffrey Gitome of Charlotte, NC has some observations and suggestions for Federated Department stores. Recently purchased Fields and Hechts, among other department stores, and changed their names to Macy's.

USA Today said that Federated is giving big stores a merchandising facelift along with the name change. They're trying to present customers a "new look" in the stores, I guess with the hope that customers will "spend" more money.

They're keeping some of the old ornaments like clocks and places that people met, but revamping their style, their name and the way they offer products: I assume in hopes of growing their business.

The Federated CEO was moaning about declining retail in-store sales, but forgot to mention the word "Internet." He also says their three main focus areas are customer service, private labels and store layout/amenities.

For a customer service facelift there was one sentence. "We're spending lots of time telling employees it's going to be great." What is that?

Meanwhile their archrival Nordstrom is doing nothing. They don't have to. They already get it. They don't need a multimillion-dollar facelift. They hardly need advertising. People don't "spend" at Nordstrom, they "buy". And like Harrods, customers come from all over the world to do so.

Here's what will happen at Macy's and the other Federated stores: people will go to see the new store once; some will like the new "look", some will hate it.

Their existing customers won't spend an extra dime. The new people who show up to gawk may buy something, but they will only come back to the store to buy again if the service is great.

However, nowhere in the article does it say that these department stores are going to put in a better-trained and friendlier staff, or that their going to provide Nordstrom-like service. Why? Because they have no concept of "human capital investment".

Think about it: They spend millions on a facelift but not a dime facelifting their salespeople.

The net result of their investment will be a short-term, small increase in business, so the corporate bigwigs can brag to their shareholders that their dollars were invested prudently.

And then all the customers who came to see the circus parade will go back to Nordstom where the service is great and the people care.

As a special service to Macy's, I am offering a "sales and service facelift" in hopes that one of their bigwigs will find it and use it. Meanwhile, this investment/training formula will also work for your business:

1. Invest and equal amount in people as you do infrastructure.
2. Invest and equal amount in loyal customers as you do in trying to attract new ones.
3. Teach your people to sell, not just serve.
4. Teach your people to up-sell, once the customer's wallet is open, empty it.
5. Teach your people to serve in an unexpected, pleasant way. At Nordstrom the clerk takes your credit card and rings up the sale without you having to wait in line at the cashier. That's pleasant. At Nordstrom - thanks to a Fujitsu cash register that's also an all-store inventory search computer - if the store you are in is out of a size or color or style, they can find it at any other store in the country in five seconds, call the store to be sure it's there and ship it to you. That's service. No facelift required.
6. Give every employee a business card. At Nordstrom, all clerks have personal business cards that they present with style, hand delivered with your receipt and a handshake. That's memorable service.

But the bottom line is: the product offerings at every department store are about the same.

The difference is the people, the service, and the technology, not new signs and shelves.

Create that atmosphere in your stores and every employee will begin to hear nonstop ringing noise made by cash registers.