To the Real Estate Agents out there – How low will prices have to go before you will call it a crash?
Posted on March 18th, 2010 in Renting & Real Estate | 10 Comments »
Jewles asked:
Right now the Real Estate Agents I know that are still in the business are still saying it's a great time to buy and that if you don't buy now then you will miss the boat. I think that what Real Estate Agents say is a great indicater of where the market is at. So once they start accepting that there was a huge bubble then sellers that are holding out now will start walking away from their mortgages or sell at losses. Then the prices can adjust and might even fall below where they are supposed to be.
Torrance Homes
Right now the Real Estate Agents I know that are still in the business are still saying it's a great time to buy and that if you don't buy now then you will miss the boat. I think that what Real Estate Agents say is a great indicater of where the market is at. So once they start accepting that there was a huge bubble then sellers that are holding out now will start walking away from their mortgages or sell at losses. Then the prices can adjust and might even fall below where they are supposed to be.
Torrance Homes
10 Responses
Non Surgical Face Lift
They will never admit to it, you’ll hear on the news there has been a crash well before they admit to it, its their business nobody is honest when their livelihood is at risk.
Malibu Real Estate
Real Estate agants cannot be trusted..
They are liars, and part of a huge monpoly… The majority of them are just opportunists, who don’t have a real stake in the market, and are just in it to try and make a quick buck.
Most don’t have a clue what an “indicator” is, let alone interpret it’s meaning correctly…
Do your own research, and you’ll learn as much as they know, and most probably more.
Sacramento Homes
For this to be a crash we would need to have the average home price decrease 20% and the number of home sales be down to 50% of their 2005 levels.
Currently, national home prices are up 1.5% from 2006 and are the number of home sales are 108% of 2005 levels (although at only 87% of 2006 levels),
So no, we are not currently in a crash. We are now in a correction. We have the possibility to go into a crash, but no one will know that for the next 24 months.
As far as my opinion as to what is happening. I have been investing for 24 years, and lived through the 1980 S&L Debacle. I sold all of my properties in 2005. I am now buying as many properties as I can.
Real Estate Investing 101 – Sell in a sellers market and buy in a buyers market.
Boston Real Estate
I would call it a crash in some parts of the country now and I expect it to get worse in those areas. I have been an investor in real estate for about 9 years and I’ve been mostly selling for the last 2 years. Now I’m buying when I see good deals. Even if value keeps falling for a couple of years the rental market should be strong for a while.
Lip Augmentation
no crash is expected just an adjustment home values have only adjusted in markets that where skyrocketing!
this is not the agents fault at all matter of fact i dont see how the blame could be put ont hem borrowers where approved at too high a debt to income and buyers bought homes out of thier proce range. or where put into adjustable rate mortgages when the rates adjusted they could not make payments or people refinanced the extra equity in there home with the same type loan and used up all the equity. granted the rule of thumb should have been to qualify them at the fully adjusted rate and not the low teaser rate!
there are those who want many to panic and not buy homes or to wait until they staart climbing this only lets them buy homes or rent the ones they are buying or as in this case push thier own agenda!
you will notice the saem people saying this and the same few people pushing the same sites take what they say with a grain of salt.
Sarasota FL Real Estate
Real Estate values are extremely local. It can be a crash for the person that bought a year ago in areas like Florida, a great buying opportunity for a buyer in those same areas, a very slow time for Realtors in those areas.
In my area of North Texas if you bought a home betting on huge price increases, that hasn’t happened.
Most home owners are seeing small increases in value year to year around here. The tax authorities are lowering their tax rates because the values that they base the taxes on are going up (but only slowly, some builders are hurt bad and so are some people that rolled their closing costs into their loans). So I think it would be very misleading to call what is happening here a crash.
I guess from what I hear from your question, your area has been hit hard. I went thru that here in the late 1980’s and early 1990’s while most of the country was having a great economic time. It was not fun.
The people that ended up getting rich were the people that had money and could buy and hold during that time.
Good Luck
Sacramento Condos, Sacramento Homes
Because it is a great time to buy. The inventory is there, interest rates are affordable and some sellers are highly motivated to accept offers.
There was a bubble which has now burst. When interest rates are double digits and sales are down 50%, I will call it a crash. In the meantime, some markets are starting to see a upturn, and well priced houses are selling. For those holding out for their dream price, they are going to have to keep dreaming. The only sellers walking away from their mortgages are the ones that got in way over their heads in all the RE frenzy and didn’t anticipate that the ride would come to an end.
Super Foods
You blame the realtors, but this problem was created by too many people with lousy credit begging for loans on houses they couldn’t afford. Now banks won’t give loans to ANYONE because people are defaulting left and right.
It is a great time to buy if you can get approved!
Buy A Gps System
There will always be pockets in the USA that will do better than others, and some are affected by changing economic conditions and some aren’t.
However, I am officiallly calling it a crash, as many of my peers. You cannot sell a house if you cannot get financing because less than 3% of your total borrowers are paying cash.
Getting financing is extremely difficult right now, and lenders are changing rates/terms on a daily basis, and I have never in my career seen so many major players go out of business completely.
Sellers right now still aren’t “getting it”. We are talking to them all the time and they still want the prices their homes would have got a year ago or two, and still want their home sold in
Boston Real Estate
Best to ask a LOCAL Realtor for your area.
Each area of the country is different!
The top of the San Diego California real estate market was the summer of 2005. Most home values are now off by double digits!
I think we are only half way through this decline. 2010 should be the bottom.
Keep in mind, the average San Diego median home price is over $550,000. So, a 15% decline is a $82,500 loss! If you purchased last year, even with 20% down payment, your San Diego home could now be worth MUCH LESS than the amount of your mortgage!
With my take on the background of the current San Diego real estate market expressed, my opinion on the immediate future is that the San Diego real estate market is likely to accelerate down as the popular adjustable rate mortgages from the last few years come up for their first adjustment.
Yes, San Diego housing values could easily be down 25 to 30% from their summer 2005 values by the end of 2007.
For some great ‘insider’ articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years…..visit:
Additional real estate info sites: