So what were home prices like before this bubble happened

[inpd]

Originally Posted by Fat Freddy

Demand, easy credit, and greed driven speculation all are factors in a real estate Bubble. But the main cause is conspiracy and price fixing in the local real estate industry.

I love a conspiracy theory. Do explain

[Fat Freddy]

Originally Posted by inpd

Do explain

The higher the prices that properties sell for, the more money realtors make.

When somebody wants to sell their property, it's the realtor who tells them what price to ask.

When buyers accept the rising prices, the balloon starts to inflate.

As the balloon inflates, it attracts speculators, panic buyers, and their associated parasites from the mortgage and banking sector.

By the time the balloon bursts, those who started it in the first place, and those who got in on it early, have already profited, while those who got suckered in late in the game, bear the brunt of the loss.

[DMenscha]

Originally Posted by Fat Freddy

The higher the prices that properties sell for, the more money realtors make.

When somebody wants to sell their property, it's the realtor who tells them what price to ask.

When buyers accept the rising prices, the balloon starts to inflate.

As the balloon inflates, it attracts speculators, panic buyers, and their associated parasites from the mortgage and banking sector.

By the time the balloon bursts, those who started it in the first place, and those who got in on it early, have already profited, while those who got suckered in late in the game, bear the brunt of the loss.

Yo FF nice try.

The higher a price is the more the seller makes too. It takes both a buyer and a seller to close a transaction. Why would a buyer "accept" rising prices? All parties to ANY transaction act in their own self interest. When you go to the market, do you ever pass on buying a particular piece of produce because it seems too expensive? Buy hamburger instead of steak?

Realtors don't make the market they facilitate it. Buyers willing to buy and seller willing to sell make the market, just like in any other market. Is today's price of gold set by the brokers? Is the price of oil set by brokers?

When someone comes to me and wants to sell their property, I look at what comparable property has sold for and make an estimate of value for the seller to consider. If I tell him a number that's too high it doesn't sell, If I tell him a number that's too low we end up with multiple offers.