Housing Prices Drop, Affordibility Improves, Buyers Return, Media Notices
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
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.
- Housing affordability on the rise
Pasadena Star-News Homes are biggest bargain since 2004 CNNMoney.com First-time buyers find silver lining in foreclosure cloud Los Angeles Daily News
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.
My mom told me to put the statue in the ground, just seems wrong to me but I did it. ...
What about RE/MAX Commercial? Where this classification came from?
I am pretty sure RE/MAX Commercial in volume sales must be above ...
Well Tom, once again you have said it much better than I could have. Unfortunately the folks at Move, ...
It certainly does not bode well for a fast recovery in the economic climate. This will affect all real estate ...
I HAVE 25 YEARS EXPERIENCE IN TELECOMMUNICATIONS..HOW DO I APPLY AT KAI. 
Definitely not a fan of Move Inc.!!! 
A lot of you really need to go back to kindergarten and learn to spell correctly. If you cannot spell ...
In 2008, there was an extension to push first-time home buyers to purchase their homes quickly since the program did ...
I also need HELP and don't know what to do about my problem. I have a garden apartment off ...
I have the same situation. I sold my home in July and am scheduled to to close in a few ...
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.
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.
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.
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?
Comment by Seanster on 3 October 2008:
It’s a good thing that we’re back on track. “even if it is a dead cat bounce”, we still have to be thankful for the resurgence.
Comment by Murfreesboro Townhomes For Rent on 14 October 2008:
Its true that prices are down and its a buyers market but if the lending community does not change the way they operate things will only get worse. I still see companies offering 0 down which in my opinion is stupid and just asking for trouble, if you can not afford 10 to 20% down you should not consider buying a home.