[longviewJoe]

Originally Posted by Mike from back east

When we had a house built in COLO SPGS in 2005 our realtor wouldn't even show us homes by Richmond American.

These issues of poor workmanship were prevalent in the housing bubble of 2004-2007 when anyone who could hold a hammer could find work in construction.

Then, as now, we had a huge tax cut that put money into the hands of people with no better place to put that money to work than in the housing market, thus housing bubbles with massive overbuilding and poor quality as skilled labor was in short supply.

Same in NorCal. We were pulling into a Richmond American new home community, back about 2004, and there were protesters out front. We stopped to ask what was going on. They explained that multiple RA homes, built in recent years, had the second floor fall into the first floor... among other problems. We got back in our car and drove to the next community down the street that was not RA.

[airics]

Originally Posted by JonathanLB

Yeah personally I can’t see how there wouldn’t be some sort of correction in that territory. Not saying it’ll last, but typically any recession brings with it downward pressure on prices across many industries. With the Vegas tourist market presumably something that will take 18 months (maybe?) to return to pre-pandemic levels, it’s hard to see how there wouldn’t be a drop in home values. Nothing enormous, but yeah a 10-15% decline wouldn’t be disastrous.

I actually don’t think you will see that much drop. It will be flat absolutely. Maybe a year. The economy hasn’t crashed. At this point, I don’t think people know what to believe.

[AA702]

I think it will take some time for anyone to know what is really going to happen. Wait until the strip opens up fully and we have an idea how many people are still not working and if they can migrate to other jobs. We will also have to wait until unemployment benefits run out and see if people who have mortgages can afford to still pay them in the long term.

[luckydogg]

I've noticed over the years that Realtors will usually always tell you "right now is an excellent time to <insert buy or sell here> a home" whether the market is going up, it's crashing, it's going sideways, won't matter. It's Rainbows and Unicorns all day, every day in real estate.

[lvmensch]

Originally Posted by luckydogg

I've noticed over the years that Realtors will usually always tell you "right now is an excellent time to <insert buy or sell here> a home" whether the market is going up, it's crashing, it's going sideways, won't matter. It's Rainbows and Unicorns all day, every day in real estate.

Untrue - It is a difficult time to advise your client. The industry views are all over the map and some are very bad. The facts are that price appears reasonable stable but volumes are way down.

The crucial information is not available. So you have to warn your client that any decision may turn out to be wrong. And you always need to admit the possibility of a 2008/9.

I would not be comfortable making that decision for myself. So what do you tell the client?

[ddrhazy]

Originally Posted by luckydogg

I've noticed over the years that Realtors will usually always tell you "right now is an excellent time to <insert buy or sell here> a home" whether the market is going up, it's crashing, it's going sideways, won't matter. It's Rainbows and Unicorns all day, every day in real estate.

Grow up dude. It's your own responsibility to make good decisions. Even a financial advisor with a fiduciary responsibility would not be able to advise you on what to do because nobody has a crystal ball.

[luckydogg]

Originally Posted by ddrhazy

Grow up dude. It's your own responsibility to make good decisions. Even a financial advisor with a fiduciary responsibility would not be able to advise you on what to do because nobody has a crystal ball.

I don't take advice from Realtors. Are you a Realtor because you seem pretty defensive?

[luckydogg]

Originally Posted by lvmensch

The crucial information is not available. So you have to warn your client that any decision may turn out to be wrong. And you always need to admit the possibility of a 2008/9.

You might be different, but I can't think of any market where I didn't hear a real estate agent say it wasn't an excellent time to buy or sell a home. Never one time have I heard one say it's not a good time to buy or sell a home, and do nothing. Why would they, their job is to sell so they make money.

[lvmensch]

Originally Posted by luckydogg

You might be different, but I can't think of any market where I didn't hear a real estate agent say it wasn't an excellent time to buy or sell a home. Never one time have I heard one say it's not a good time to buy or sell a home, and do nothing. Why would they, their job is to sell so they make money.

Because they have a fiduciary duty to tell the client of anything that would effect the transaction. Well spelled out in the Duties Owed.

[ddrhazy]

Originally Posted by luckydogg

I don't take advice from Realtors. Are you a Realtor because you seem pretty defensive?

If you don't trust their opinion on market prices in the future, then don't. But honestly you have mistaken what a realtor is supposed to do. A realtor is there to guide you through the sales process since someone who has done it dozens of times is better equipped to handle the negotiation than someone who has done it zero times.


The only thing realtors will tell you is past prices vs. current prices. If they try to tell you what they think prices in the future are, that's just their opinion. Nobody has a crystal ball.