Housing Prices Drop, Affordibility Improves, Buyers Return, Media Notices : The Real Estate Bloggers

Housing Prices Drop, Affordibility Improves, Buyers Return, Media Notices

May 21st, 2008 • Related • Filed Under

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We need to teach economics better in the country.

Lets do the formula that we all know.

  • Speculators drive the housing market up.
  • Typical buyers are priced out.
  • Some still buy.
  • Market hits the top, speculators bail out.
  • Prices drop hurting late buyers.
  • Foreclosures and inventory make prices drop fast and hard.
  • Homes become affordable to typical buyers.
  • Buyers return to market.
  • Real Estate market finds bottom and comes back up.

Either I am damn smart to be the only one to see this, and I know I am not, or the media is just a herd that is chasing the story of the day.

Check out these headlines.

The story of the day is that housing is again a deal, and affordable, and makes sense to buy or at least look.

So what does this mean to you, the real estate agent?

Expect to see a surge in first time homebuyers coming to look.

These folks may not be ready to buy yet, but they are interested and eager. They have been married a couple of years living in a rental waiting to live the American Dream of owning a house.

This is the demand I was talking about that has been percolating. These folks did not want to buy into a down market but at the first sign of a bounce, even if it is a dead cat bounce, they will be looking.

And some will even be buying.

So get your buyers agent hat on, I bet you will be very busy showing homes in the next month as now the media has recognized that housing is affordable again.

PS This is the bottom I expected after the elections were over. With Obama ahead of Hillary now the media probably thinks he is safe and it is okay to talk up the economy.

 

Related posts:
  1. K&B Founder - Home Prices Could Drop 20 Percent More
  2. Northern Texas Sees Pre-owned Sales Drop - Median Prices Rise
  3. News Flash: As Home Prices In Tucson Come Down, Buyers Emerge
  4. Housing Prices Adjust, Rental Rates Soar
  5. There are some incredible buys out there for first-time home buyers…



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There Are 4 Responses So Far. »

  1. Comment by Joe P on 21 May 2008:

    “Dead Cat Bounce” perhaps. I think there is a little ways to go but things look to have slowed. There are still regions where pricing is still completely out of line and should continue to experience a decline.

  2. Comment by Shell Smith on 21 May 2008:

    I totally agree with Joe P. I think that areas I am interested in are out of control. I have been looking for real estate in Florida for example, and still think a decline is in order.

  3. Comment by Kirk on 21 May 2008:

    If rates increase, real estate is in for a hell of a ride down. Homes might be somewhat affordable at these historically low rates. At higher rates, homes are grossly overvalued.

  4. Comment by Joe P on 22 May 2008:

    Kirk, well said. If we raise interest rates over the next 3 months would that accelerate a needed decline in prices or completely collapse the mess?

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