'Window Right’ For Buying Residential Real Estate

Falling home prices is unleashing pent-up demand. But too many buyers remain on the sidelines, according to the chief executive officer of Century 21.

“I’m fearful that … the average individual will miss what I think is one of the greatest opportunities I’ve seen in my years in this business,” said Thomas Kunz in a recent interview with the Business Journal.

Century 21 is a franchising unit of Realogy Corp., a New Jersey-based privately held concern that owns Coldwell Banker, ERA and Sotheby’s International Realty.

Realogy, which was purchased by the private equity firm Apollo Management LP for $8.75 billion in April 2007, has been hammered by the downturn.

The company posted a net loss of $797 million between April 10 and Dec. 31, 2007, according to regulatory filings.

Kunz conceded the meltdown has slowed transactions, but said there is a silver lining in the cloud hanging over the market.

Kunz was in San Diego on June 12 to meet with agents to discuss market conditions in the rapidly deflating housing market.

“A year ago, newspapers were full of subprime meltdown news. Before then, 99 percent of people hadn’t heard the word before,” he said.

Bottoming Out

The failure of New Century Financial Corp., the near failure of Countrywide Financial Corp. and bailout of Bear Stearns Cos., destroyed confidence in the industry.

However, Kunz remains optimistic. “The reality is that things are bad for some but not for everybody,” he said.

Buyers who wait for the bottom could miss out when the market turns. The $20,000 to $30,000 saved on the sales price of a home might be erased due to higher interest rates later, he said.