Late last week, I ran into one of the local real estate consulting gurus while getting my morning coffee at Ukrop’s. Having known this individual for years, our conversation naturally turned to real estate. I was struck by some of his comments when I asked the age old question “how’s the market?”.

Here’s what my swami had to say:

1. We’re bouncing along the bottom. To which I replied, what about the commercial crisis that’s looming?

2. There were 3 R.E.I.T.s (Real Estate Investment Trust) initial public offerings last week that quickly raised billions. The commercial problem will be “self-vulturized” (I love that image – other commercial practitioners swooping in for the road kill). But what about rising mortgage delinquencies?

3.  Commercially, mortgagees had “skin” in the game, therefore the “self-vulturizing”. Residentially, banks are getting better with their procedures for short sales, reo’s, etc. Will the $8,000 Tax Credit get extended?

4. No, we’re bleeding red ink. (Personally, I think it will, but we’ll see.) So why are you so confident when all I hear is ”doom and gloom”?

5. 2010 corporate profits will be huge. Which just reminded me that this is America. Policy is shaped on Wall Street despite what D.C. thinks.

I’ll revisit these predictions in a few months and let you know if my oracle is still my oracle.