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For six or eight years, buyers were told, "We're having a party, and you're not invited." Prices doubled and tripled, and owners cashed out. They bought marble and granite and stainless, and figured they deserved to get paid for their home.
"If you don't buy now," they said, "You'll be forever priced out."
Nobody asked what would happen when the buyers were priced out, or where all the money was coming from.
Now the clock has chimed midnight, and the carriages have turned back into pumpkins, and the owners and the agents are scrambling to blame anyone, and everyone, but themselves.
actually Linus, those that sold at peak also bought at peak. There were TOO MANY buyers out there and not enough inventory to go around, because there were a lot of investors in the market.
Investors pulled out. and started selling their properties, and normal folks that have to sell for normal reason are competing and now TOO MANY properties and not enough buyers.
Real estate is cyclical and will change again. This too shall pass.
actually Linus, those that sold at peak also bought at peak. There were TOO MANY buyers out there and not enough inventory to go around, because there were a lot of investors in the market.
Investors pulled out. and started selling their properties, and normal folks that have to sell for normal reason are competing and now TOO MANY properties and not enough buyers.
Real estate is cyclical and will change again. This too shall pass.
Shelly
The normal folks (here I mean people who did not buy at peak time) however do not want to sell at NORMAL prices, they want to compete with the highly inflated unrealistic prices and complain about not getting it from the buyers, hope they did not use their houses as ATM bank and expect buyers to pay for their debt. If normal folks did not buy at peak time, they should have enough equity in their home to lower price to a NORMAL level, then no one can compete with them. I think it is all about greed.
I don't like speculators, but I respect people who are first time home buyers who bought with hard earned money at peak time but unable to sell now. I sincerely hope they can manage to overcome this hard time. If the house is priced reasonably, I will not lowball an offer to take advantage of them. That being said, I may try to avoid buying houses that were bought at peak time. The media, government and NAR, mortgage lenders, home builders should all take some blame.
Last edited by midlander008; 10-17-2007 at 03:32 PM..
The normal folks (here I mean people who did not buy at peak time) however do not want to sell at NORMAL prices, they want to compete with the highly inflated unrealistic prices and complain about not getting it from the buyers, hope they did not use their houses as ATM bank and expect buyers to pay for their debt. If normal folks did not buy at peak time, they should have enough equity in their home to lower price to a NORMAL level, then no one can compete with them. I think it is all about greed.
I don't like speculators, but I respect people who are first time home buyers who bought with hard earned money at peak time but unable to sell now. I sincerely hope they can manage to overcome this hard time. If the house is priced reasonably, I will not lowball an offer to take advantage of them. That being said, I may try to avoid buying houses that were bought at peak time. The media, government and NAR, mortgage lenders, home builders should all take some blame.
Interesting....just out of curiosity - why should NAR take the blame?
Interesting....just out of curiosity - why should NAR take the blame?
NAR's false forecast, I have friends who bought in 2004 and 2005, because media and NAR's forecast made them think the housing has hit the bottom and will go back again soon and now the value of their houses drops a lot. Right before the August credit crunch, Lawrence Yun was still saying that. Do realtors really believe the market will turn around next year and are telling people just that.
Not all realtors are unethical and I understand why he does that being the chief economist of the NAR, we all need to make a living. It's probably his job to save the market. But truly quite a lot of people believed in it and the media quoted a lot of forecast from NAR back then and many who bought at peak now are underwater. I have to say I believed in it also at that time and did not do much research (i'm a type of person who does do a lot of research before buying big things). Fortunately I did not need to buy house, i would have done extensive research if I needed to buy at that time.
I believe there are good realtors out there, my father had one when he bought his house in 1996, but there are also bad ones who took advantage of the buyers. Sometimes openly admitting mistake will make one look more credible and trustworthy. The more some realtors object the negative news, the more people disbelieve you this is what I see the trend on other forums and blogs. Recently my friend did not use realtor to buy house since there is internet and they could hire a lawyer. More and more people are doing that today especially among younger generation.
Right now, it maybe a hard time for the realtors to deal with sellers and buyers, I just wish price can come down to a level at which people start buying instead of a long slow pain.
But if NAR keeps going on like this, it will ruin the entire industry, seriously. when NAR's reputation got more ugly and young people turn to internet for buying (old people may still rely on realtor but years later, that will change). It will no sales no commissions for the realtors, the entire industry will be in danger.
Last edited by midlander008; 10-17-2007 at 06:27 PM..
Interesting....just out of curiosity - why should NAR take the blame?
OMG, your not serious are you? I put the NAR (Lareah and Yan) right below used car salesmen and right above Mozilo from Countrywide. They and their ilk are borderline criminals for the garbage and lies they spewed over the years. Look at this, even up till last year THEY WOULDN'T ADMIT THERE WAS A BUBBLE IN THE SARASOTA MARKET....
is anyone surprised? If the NAR admits anything negative it lessens the commissions of their realtors. I'm blown away that there were still some realtors' who actually tow the company line...LOL
OMG, your not serious are you? I put the NAR (Lareah and Yan) right below used car salesmen and right above Mozilo from Countrywide. They and their ilk are borderline criminals for the garbage and lies they spewed over the years. Look at this, even up till last year THEY WOULDN'T ADMIT THERE WAS A BUBBLE IN THE SARASOTA MARKET....
is anyone surprised? If the NAR admits anything negative it lessens the commissions of their realtors. I'm blown away that there were still some realtors' who actually tow the company line...LOL
I hope you were being sarcastic and are not brainwashed by them...
Now Jack...I don't believe everything You say without questioning...lol...thank you for answering, however. My clients are willing to pay my commission because I'm worth it. I admit when I'm wrong, I ask questions and quite simple I try to do the best job I can to protect their interests throughout the transaction. I take the word represent quite seriously, my code of ethics training started long before I could read the written word.
Real estate is cyclical. People said the same in the late 80's. It is simply supply vs. demand which is a sales principal. Right now lenders got too competitive and then some went out of business and the remaining lenders over-corrected temporarily. When coupled with builders going crazy with inventory it created an unbalance in buyers to sellers. The result is predictable that it became a buyers market. It's a great time to be a qualified buyer, and I do believe the market will come back next spring. My local market is actually up 3% this year so keep in mind real estate is local.
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My clients are willing to pay my commission because I'm worth it. I admit when I'm wrong, I ask questions and quite simple I try to do the best job I can to protect their interests throughout the transaction. I take the word represent quite seriously, my code of ethics training started long before I could read the written word.
