Housing Prices Drop, Affordibility Improves, Buyers Return, Media Notices
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 wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
I see the question I have, but no response. I do not have a for sale sign up ...
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.