Real estate continues to plummet, prices are decreasing rapidly. Bottom expected in 2010

[Franklyn]

Originally Posted by Humanoid

Just to note, this isn't the point of Hotelling's law. .

Agreed. It's the "principle of minimum differentiation". In my cited case the differentiation was about location.

Those 4 stations were obviously taking market share away from somewhere else. But when three large home improvement stores move into fairly close proximity don't they ultimately take a portion of their customers from other stores? Maybe more remotely located operations? And isn't that minimizing at least one aspect of market differentiation?

Fully agree, though, there are many other points to consider. <Switch off>

[Humanoid]

But when three large home improvement stores move into fairly close proximity don't they ultimately take a portion of their customers from other stores? Maybe more remotely located operations?

Obviously it depends where the other stores are located. Most people aren't going to drive to area X because there are 3 home improvement stores instead of area Y which is much closer which has only one. They all tend to sell the same junk. But I don't think the "law" applies so easily to retail stores. I also don't know of any case where home improvement stores are in close proximity, they are miles away in all the cases I know.

[Chickrae]

Originally Posted by Kalbo

Now is a good time to buy, fact is prices are way down now in some areas. No one knows for sure if they will continue to go down. If you buy know you know you are paying much less than a person who bought in 04, 05, 06, 07.

In what area or state though...everywhere? This is my first time posting in this thread so alot of pages to read, so I am just jumping in here.

I am looking in Southern Utah/St George which is out of state for me and the real estate agent that is setting up homes for me to look in the next month told me that area hasn't bottomed out yet, probably 5 months or so. I thought she was really honest for saying that, when she could of told me buy now. But I agree buying now you would still be paying less than people did since 2005 or so.

[Franklyn]

Originally Posted by Chickrae

In what area or state though...everywhere?

All markets are local. What is true one place is not necessarily true in another. There are some markets in this country that are up and have stayed up all this time. So in spite of several bunny trails, what this thread has mostly talked of is markets that are following the national trend. Therefore your agent is probably a better source for market conditions in the specific area you mentioned.

Having said that, it takes time to familiarize oneself with a market, determine one's needs and wants, locate a few specimen properties that meet those n's & w's, and get to the point where one is ready to make the hard choice - an offer.

Whether the time needed to do that is three months or five, your agent's timing estimate may prove to be informed, fortuitous or self-serving. Only you can decide that. So I recommend performing in-depth due diligence concerning that market independent of your agent. But once you've finished that phase, if you've determined you can rely on your agent - do so completely.

Good luck with your search.

[Chickrae]

Thanks for your information I will do that.