DISQUS

MyJourney · 4 months ago

Flexo,

"The $450 is hardly an incentive for the broker; he could do better by closing the deal and moving on. On the other hand, the $28,200 (the $30,000 in price difference minus the 6% paid to the agents) is a significant difference for the seller. "

This is literally the basis for chapter 2 of Freakonomics - "Chapter 2: How Is the Ku Klux Klan Like a Group of Real-Estate Agents?" If you haven't read the book PLEASE LET ME KNOW AND I'LL Happily lend you mine

Personally, I do not think we are out of the woods just yet, and it makes me crazy when the NAR makes statements and the journalist who quotes them doesn't qualify the quote like you did.

chester moon · 4 months ago

I think its at best a false bottom. The moratoriums as well as some banks holding onto inventory, have reduced the supply of houses on the market vs real supply. This has caused more competition for good homes in selective markets. Once the home buyers credit expires I expect there to be another drop in demand, with increased supply. The job market while forecasted to be better next year will still be crappy. for there to be real demand the house prices would have to increase enough for people to regain enough equity to consider swapping houses. I just don't see that any time soon. Though I think the financial side of this has been resolved, it will be years before we clear up this inventory get back to a normal market.

Rick Casey · 4 months ago

NPR mentioned today that issued foreclosures has gone up to record numbers last month as a new round of foreclosures is beginning due to unemployment rather than rising interest rates.

Is it time to refer to these graphs again?
http://activerain.com/blogsview/202178/adjustab...
http://www.thetruthaboutmortgage.com/interest-r...
http://healdsburgbubble.blogspot.com/2009/05/re...

Matt Jabs · 4 months ago

We will always have to deal with bias in statistical and news delivery. The only thing we can do as individuals is to educate ourselves and be slow to move on all things.

Thank you for reminding me to of these truths... it encourages me and reminds me that my own solutions are the best solutions.

Eden · 4 months ago

I think the part of the housing crisis that caused it in the first place is finally behind us (insane credit and bubble prices). However, there are still many foreclosed homes just in my small neighborhood and myself and many people I know are break even at best or underwater on our homes. We could be bottoming, but I think it's safe to say we are a long way from rebounding or even a return to 'normal'. Do we even know what normal is anymore?

frank · 4 months ago

You can view my thoughts on the housing market in general here, although it is a bit dated :)

Matt SF · 4 months ago

The NAR is nothing but a trade organization out for their own best interests. While this isn't a crime, it should imply that anyone using their services should take whatever they say with a grain of salt.

As far as market bottoms, it really depends on where you are looking to invest. Many areas didn't even experience a housing boom, so the bust effect has been limited or gone unnoticed.

From the recent data I've seen, I think a small percentage of investors will come in and begin buying lightly throughout the bottoming process of the hardest hit markets (Miami, southern Cali, Las Vegas, etc), but I think we'll trade on a slight downgrade to flatline for the next year or two.

Akemi · 3 months ago

What I am seeing now, is a low inventory of REO homes. Are banks holding on properties? Once you find a good one, there are multiple offers sent, and of course, it gets sold way above listing price.