Two bits of news are worth mulling over as the real estate industry braces itself for an unpredictable spring selling season that could go either way. Energy costs are up and jobs are teetering.

Crude oil prices have hit the $100 mark for the first time, and have hovered near there since. That's more than twice the price of crude only five years ago. Heating oil prices will be higher almost immediately, and consumers will face $4 per gallon gas in less than two months. As consumers cut back on their disposable spending to pay for higher energy costs, the next thing to happen is job loss, and it's coming already.

A report from Automated Data Processing, Inc. suggests that private sector employers added only 40,000 jobs in December. Worse, the Labor Department reports that unemployment benefits are at their highest levels in two years.

It's more than contradictory -- manufacturers are losing jobs while services are adding.

A nation of consultants without customers can only last so long.

Everything from your cheap Chinese-labor goods to airline travel will cost more, and there's not much more room to cut in pricing. In the Wal-Martization of America, things are about as cheap as they can get, unless, of course, our CEOs' gigantic paychecks are reduced, and we know that's not going to happen.

When prices go up and paychecks disappear, people stop discretionary spending, down, especially when they're already at zero savings and thousands in debt to credit card companies.

The problem with that is that we're more reliant on imports, and with production, delivery and oversight costs certain to increase, we won't be buying foreign goods either.

Made in America is a thing of the past.

That means a recession and more job loss. Consumers will have to be wooed back to the mall, and the only way to do that is to make borrowing money to pay for stuff you don't really need more attractive.

The only possible outcome is that consumer interest rates will drop further by spring. You'll see zero financing on cars and on credit card teasers. Mortgage interest rates will also bottom, which is great for home buyers and refinancing homeowners.

The housing picture will be a tale of two cities. It will get worse for those impacted by job loss, but it will be great for those waiting for better homebuying conditions.

Lower home prices, high inventories, and low interest rates are the homebuyer's trinity.

Smart buyers should act now, before the speculators jump back in and run housing prices back up again.

Published: January 4, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.