Speculators Misjudged The Market
A report from the Arizona Republic. “Mainstream home builders are under growing pressure to go green…which could be risky at a time when revenue is down and sales are stalled. ‘These guys are fighting for their lives at the moment,’ said RL Brown, a Valley housing analyst. ‘They’re trying to figure out how to make a sale, how to carry the burden of the inventory, how to get rid of the excess land, how to get the cancellations to go away. They’re into serious, hard marketing challenges right now. They’re not into that (green) kind of thing.’”
“Right now, they’re struggling to get their finances in shape as they try to clear an excess of inventory. At least 20,000 unsold new homes in the Valley wait for buyers, according to various analysts.”
“Doug Fulton of Tempe-based Fulton Homes said his company has started to sell houses below cost in some fringe markets, and he believes other builders are, too. ‘If it sold homes and made sense, I’d do it,’ Fulton said. ‘We’re just trying to keep our heads above water. It’s a little brutal out there.’”
The Explorer News from Arizona. “About a year ago Ricardo Small received a fax asking him to appraise a house in Marana, a daily event in the life of a real estate appraiser. When the appraisal was complete, Small sent it to the mortgage broker who had requested his service.”
“Small said the broker launched a campaign of furious phone calls demanding that the house be appraised for a greater value. ‘There’s an unacceptable level of dishonesty among appraisers,’ Small said.”
“After his conflicts with the mortgage broker, Small said the broker acquired the services of a second appraiser whose estimate actually exceeded the broker’s desired price.”
The Arizona Daily Star. “The cost of building and improving homes and businesses in Sahuarita is about to go up. The housing slowdown has reduced the town’s revenue collected from a construction sales tax, Town Manager Jim Stahle said last month.”
“Rents are rising modestly for large apartment buildings in Tucson and the occupancy rate is slipping down, according to a rental market research firm.”
“The dip could be related to the slowdown in the real estate market, and the abundance of unsold single-family homes, which are now being marketed to renters, said Terry Feinberg, president of the Arizona Multihousing Association. The same phenomenon is occurring on an even larger scale in Phoenix, he said.”
“But Tucson has an added twist in its market helping to prop up both rents and occupancy levels, no new supply of apartment buildings, Feinberg said. Rents have not been high enough to justify the cost of constructing new apartment buildings in Tucson over the past several years, he said.”
“‘Now since the real estate market has shut down a little bit, they’re not buying homes,’ said George Amos III, CEO of Tucson Realty & Trust Co. ‘They’re going back into apartments again.’”
In Business Las Vegas from Nevada. “Las Vegas homeowners are showing signs they are willing to cut their prices to make a sale. The median price of new homes listed on the MLS in June was $329,825. That’s the lowest median listing price since it was $324,900 in December 2004.”
“Las Vegas Realtor Steve Cross said he’s been surprised at what he’s seen recently on the MLS. It appears the number of daily price revisions on listings is increasing, Cross said.”
“Between July 1 and July 15, there have been more than 4,200 revisions of prices, and Cross said it’s unlikely many would be increasing. As recently as July 13, there were more than 700 revision a day, which he said is well above normal. Some of the revisions have ranged from $1,000 to $50,000, he said.”
“‘I think many people are realizing they have to be realistic on their prices,’ Cross said. ‘Some have doubled their money in the last five years and if they knock a few thousand off their price so it sells, is no great shakes.’”
“Others who bought late into the market are going to have to turn to short sales and sell the home for less than what they owe the bank, he said.”
“In June, Nevada had one foreclosure filing for every 175 households to lead the nation for the sixth-consecutive month, according to RealtyTrac. That’s a 280 percent increase over June 2006 and well ahead of second-place California, which had one filing for every 315 households.”
“Michael Krein, president of Nevada Real Estate Services, said he’s carrying 700 properties that have been foreclosed and expects that number to increase because many loans won’t have their payments adjusted until later this year or early 2008.”
“Homeowners who bought their homes with an adjustable rate mortgage have seen their payments increase 50 percent in some cases and others have seen their payments more than double, Krein said.”
“Foreclosures are occurring in every price range but the majority of the houses and condominiums fall between $350,000 and $600,000, Krein said.”
“About 75 percent of the homes Krein has dealt with were purchased by speculators who misjudged the market. ‘When you have cab drivers talking about real estate, it’s time to leave the market,’ Krein said.”
The Review Journal from Nevada. “The summer months are always slow for home sales in Las Vegas. When it’s 110 degrees outside, nobody likes to go house hunting. There were 1,872 new home sales in June, bringing the total to 10,395 for the first half of the year, a 45 percent decrease from a year ago, Home Builders Research reported.”
“Home prices have fallen, but not nearly as much as pundits predicted. California real estate consultant John Burns said housing Las Vegas prices must drop 30 percent to return to a normal market.”
“‘Is it realistic for houses to back off by 30 percent?’ asked Larry Murphy of SalesTraq. ‘Why are we even talking about it? Come on. I think prices still have a ways to come down in Vegas, but not 30 percent. Eight to 10 percent, maybe.’”
“‘My interpretation of Vegas is not that it will have to plunge 33 percent, but rather that Vegas is being promoted into the small elite group of cities that have enough external factors that make people want to own property there that the prices simply are high relative to income,’ said Alex Edelstein, developer of the mid-rise Manhattan condos and Manhattan West in Las Vegas.”
“Peter Kaiser was hoping to find a home at a reasonable price. ‘What I have found is a market full of homes still hoping to extract the prices seen in late 2005. Simple three-bedroom, two-bath homes that are still $100,000 more than they’re worth are languishing on the market for well over a year,’ Kaiser said.”
“He said he’s seen at least a 10 percent slide in prices for homes in Henderson and Green Valley for the past six months and they’re still not moving at the reduced price.”
“‘Bottom line from my point of view is that the current price levels have been set by investors, not people who plan on actually living in any of these homes,’ Kaiser said.”
“‘I cannot and will not jeopardize my family’s financial well-being by jumping into a market that has such a high chance of going further south. We are currently renting a nice little home and doing what very few in our society are able to do any more — save money,’ he added.”
“He has a novel idea about what to do with all the vacant homes in the valley. An estimated 40 percent to 50 percent of the 23,000 homes on the MLS are sitting empty. According to the Las Vegas Outreach Center, there are 10,000 homeless people in the valley. ‘I think I just solved our homeless issue,’ Kaiser said.”
The Deseret News from Utah. “Housing prices continued to rise in Utah during the second quarter of 2007, but the number of homes sold dropped along the Wasatch Front. Most notable were Salt Lake and Utah counties, each of which saw a 19 percent decrease in the number of units sold in the second quarter compared to the same three-month period of 2006, according to the Salt Lake Board of Realtors.”
“Jillinda Bowers, the Salt Lake board’s president-elect, attributed the decreased sales to fewer investors participating in the market. ‘We don’t have the influx of investors that we had in the past. We’re not seeing that as strong in our area,’ she said.”
“Debra Sjoblom, former president of the Salt Lake board, chalks the declining sales up to the typical summer slowdown. ‘Who the heck knows (why)? Is it the heat? Is it summer vacation? Is it just a combination?’ said Sjoblom, anecdotally noting that while the market remained robust through May, it has ’slowed tremendously’ in the past 45 days.”
“Several individual ZIP codes posted a decrease in median home values. The 84103 ZIP code, which includes the Avenues in downtown Salt Lake City, saw an 11.9 percent decrease in median price over this time last year. Three Weber County cities, Eden, Huntsville and Marriott/Slaterville, also experienced varying levels of price drops, as did Alpine, American Fork and the 84604-area of Provo in Utah County.”
The Salt Lake Tribune from Utah. “Higher mortgage rates. Reduced affordability. A nagging fear prices are bound to nose-dive. Home buyers along the Wasatch Front pulled back this spring for a number of reasons, leading to falling sales of existing homes as reported Friday by the Salt Lake Board of Realtors.”
“Some buyers have been priced out of the market as a result of the double-whammy of rising home values and rising mortgage rates, both of which push monthly mortgage payments ever higher. Home values in a number of areas have grown by 50 percent to 100 percent over the past five years.”
“Add higher payments to tighter lending guidelines, and ‘there are more buyers who simply cannot qualify [for a home loan] right now,’ said economist Jeff Thredgold.”
“But Thredgold said an even greater factor driving down sales of existing homes is all the talk about the bursting of the nation’s housing ‘bubble,’ where selling prices are flat or falling in cities such as Phoenix and Las Vegas. ‘Buyers are concerned,’ he said.”
“In many areas, for-sale signs are piling up and take longer than they have in past years to come down. One concerned Utah home buyer is Jeff Rouse, who has recently moved to Salt Lake City from the San Francisco area. Rouse said he initially was going to buy right away. But as he began to drive around the Salt Lake Valley, he said he noticed quite a lot of for-sale signs. Some of the homes he looked at a few weeks ago now have lower asking prices.”
“‘I’m thinking of renting for a while and just seeing what happens,’ he said.”
“He has a novel idea about what to do with all the vacant homes in the valley. An estimated 40 percent to 50 percent of the 23,000 homes on the MLS are sitting empty. According to the Las Vegas Outreach Center, there are 10,000 homeless people in the valley. ‘I think I just solved our homeless issue,’ Kaiser said.”
Imagine how long it would take 10,000 homeless people, to destroy 10,000 houses?
There would be like 5 or 10% success stories to come of it, and the rest disasters for the homes and unfortunate neighbors. Might be a boon for crystal-meth lab toxic-cleanup companies, though.
About 10 minutes.
A friend of friend had homeless friend living at shelter and asked if I could help out. Through a church outreach center, homeless girl was able to come up with the rent, but not the deposit. I (stupidly) said she could move in and pay $50 per month toward the deposit until deposit of $600 was met. By the end of the first week, she had called my cell phone at least 200 times complaining — the final straw was a call after midnight because her porch light had burnt out. At the end of the month, I told her it just wasn’t working out and I’d help her find a place more to her liking, so she got mad and had a big party for all her crack-head friends. In the morning, she poured quick-dry cement in the toilet, threw sh*t everywhere, and took off. Good riddance. It cost me $6000 to have the apartment building re-plumbed, apartment repainted, and new carpets.
Thats why homeless people deserve to be homeless. You did a kind deed and she bit the hand that fed you. I ignore people like that. I don’t give them even one penny, I don’t even talk or look at them(don’t wanna make them mad) They need to stop being lazy and get any min wage job and buy their own food and pay their own rent(if they can afford, or stay homeless but at least have good food)
‘I’m thinking of renting for a while and just seeing what happens,’ he said.”
Smart move.
Rouse said he initially was going to buy right away.
But: #1 ” he noticed ”
#2 ‘I’m thinking ”
Imagine THAT !! My GOD someone actually paid attention, then had constructive thoughts …. ON THEIR OWN, depsite the massive propoganda to do otherwise.
Almost fell out of my chair with surprise. Now if only more people took the initiative to form their own conclusion based on facts rather than submit to hysteria & trends.
Like the Harry Pottter line outside my loca Barnes & Nobles yesterday afternoon. Hey, it’s fun for KIDS n all ,,, thats terrific ,,, but when 30+ men start waving little wands around ,,, thats just creepy !!
( and they were not parents )
If a 30-year old dude waves his little wand at me, I’ll cut it off and feed it to him.
And youd go to jail for assult. Who cares what interests adults have? Its legal to be a Harry Pottar fan *rolleyes*
It certainly does seem wise to wait for the dust to settle on the subprime debacle, and to see how the market adjusts for the transition of investers from the demand side to the supply side of the market, the ongoing inventory correction, continued overbuilding into a bust, wave after wave of ARM resets over the next four years, and spreading wave of foreclosures. All paths point to lower prices, and anyone who buys now runs a high risk of catching a falling knife.
“Smart move”
In a way, yes. The only reason he’s not buying is because the market is bad. I still question why he would move to a new town and seemingly the first thing he wants to do is buy a house. IMO, renting for 6 months is the smart move regardless of what the RE market is doing.
“‘Bottom line from my point of view is that the current price levels have been set by investors, not people who plan on actually living in any of these homes,’ Kaiser said.”
Greenspan’s comments about bankruptcy increasing “because Americans have lost their sense of shame” dovetail very nicely with investors helping drive up market prices. What’s different this time around, and what the Spanman was possibly alluding to, is that people recognize there’s inordinate greed in the marketplace (including their own) and the rules are now different. The rentier class depends on people being honest, or at the very least unable to just walk. Societal stigma helped keep the rentiers in business, but now it’s a new paradigm. More and more FBs are going to refuse to play the game and be debt slaves to a house and the wealthy all their lives. They’re walking, and this should concern people like Greespan who licks the boots of those who make the rules. The rules only work when the sheeple agree to follow them.
Reminds me of a good friend, who was once the City Manager of a small town in W. Colo that was being pushed around by the federal government. The town adopted a logo with a mouse flipping off an eagle about to grab him in its talons. Interestingly enough, the mouse won the battle in this case.
That comment reminds me of the issues that the hedgies have had of late. They forgot that at the end of that paper trail is somebody trying to either pay the note, or sell the house. If they can’t do either one of those, then the paper is only worth as much as the underlying property, and that value is droping pretty quickly now.
I wonder how their models are behaving now?
“I wonder how their models are behaving now?”
If you are referring to the hedgies trophy wives, they are probably planning to run off with the pool boy…
Let them do that. The judge won’t be kind towards adultresses and you will get to keep all your assets in that divorce. Ill never marry!
According to the Kevin Phillips (who wrote “American Theocracy”), the rise of the rentier class also predicts the end of the global dominance of a country. And basically, when they talk about “consumers” driving the economy now, what they’re really saying is credit.
A la France.
Ouch.
Sounds like a kook.
“…the rise of the rentier class also predicts the end of the global dominance of a country.”
This was true of the Dutch, Spanish and British Empires. But, of course, it’s different here (where have I heard that before?)
The ability to induce people to take on greater and greater levels of debt, is what’s keeping our credit driven economy going. At some point consumer psychology will change and those people sitting on massive amounts of debt will be screwed for the rest of their lives.
Next year starts the first year of baby boomer’s retiring, for the next twenty years. Social Security, Medicare and Medicade can’t handle the coming wave of retirees. Many people expect that their house will provide for their retirement. This is dependent on young peoples willingness to take on huge debt’s to essentially fund someones retirement. If young people become averse to debt, it’s game over.
We should start hearing more about the problems with social security and medicare next year. It should be a major election topic.
If young people become averse to debt, it’s game over.
Don’t have to wait for that. It’s when lenders become adverse to lending money to people who don’t have the means or will to pay it back, that the game starts to end. And we’re already seeing that.
And as we’ve eradicated so many previous early killers… (smallpox, polio, scarlet fever, malaria, tuberculosis, cholera, et al)
Many boomers will live to be 100…
Party on, Grand-Dude
This is a misconception. Infectious diseases killed (and still kill, in the 3rd world) mostly children. The elimination of these is the main reason life expectancy is higher now than 100 years ago. Another reason is that a lot of women, and their babies, used to die for childbirth-related reasons. That’s very rare now.
Once people got to middle age, they actually lived almost as long as their counterparts today. They eventually die of degenerative diseases (heart disease, cancer) that we still can’t do a lot about. People really don’t live much longer now.
I doubt that. Life expecticity was 45-50 years in 1880s and I fear we will be returning to a way of life of that time post peak oil. Diseases kill adults too. This is the one thing I fear most, I may not live past 60 without modern medicine.
‘What’s different this time around”
- Is that free money was loaned to anyone who wished it. I bought two homes in the 1980’s and it was unthinkable to come to the table without a down payment.
I agree with everything that Kaiser said except the solution to homelessness. Suppose you are a responsible taxpayer who shuns drugs and worked hard to find a quiet neighborhood where no ghetto blaster music at odd hours or drunken parties occur at 2 in the morning. Now Kaiser’s solution is to move a drug-addicted homeless single mother and her kids in to the vacant house next door.
This is why I say socialism is a mental disease that even infects well meaning people. They just do not see the consequences - the reinforcement of irresponsibility and the punishment of those who take responsibility for their own well being.
the reinforcement of irresponsibility and the punishment of those who take responsibility for their own well being.
So are you saying that GWB and company are socialists? Or are you only a socialist if you reward irresponsible poor people, not irresponsible rich and well-connected people?
I find your comments extremely offensive. You might well be living next door to drug-addicted people. How do you know? Many physicians and lawyers are addicts. The ex Governor of your state had a drug-addicted wife. Get a clue!!
I grew up in an inner city neighborhood and I am extremely responsible. I do not smoke or drink (which are also addictions) and have never used drugs. My parents were very close to being homeless because of some corporate raiders in the 1980s. They both worked hard and lost their jobs and pensions because of greed.
Many homeless people are also veterans - many from the Vietnam War era. You’ll see their numbers increase when the War in Iraq is over. I got to know a homeless guy who wandered around close to where my university was. He was a Vietnam war veteran. I saw some little kids throwing stones at him. They probably were your kids.
Sorry, I meant to say current Senator of Arizona.
Perhaps let the homeless guy move into your home.
I came from a lower middle class background and lived in an area with drug dealers, ghetto blasters, and there was a gang fight on my parents’ front lawn in front of my bedroom window. I take offense to your offense. I know how those savages are. Plain and simple. I had enough of them then. I hate integration. I know what it really means. Perhaps you were born into a silver spoon family like most liberals are.
“Perhaps you were born into a silver spoon family like most liberals are.”
You apparently didn’t read my comments or else you have trouble with reading comprehension.
“I hate integration.”
You are the kind of person who talks around an issue and if someone brings up race (which you allude to without mentioning), you tell them to stop playing the race card…which you are playing without saying it directly. What does this have to do with integration? You’ve never heard of homeless white people?
Frankly, you are someone that I wouldn’t want to live next to.
There was a homeless guy in the lot next door to my parents. Lots of them are schizo types you would not want to deal with. There were little kids in the neighborhood. I certainly would chase the bums out if I was a parent.
Good. I would not want to live next to you either.
The beauty of the internet is that you guys are probably next-door neighbors and don’t even know it!
This has nothing to do with race, but the tone of what you write has everything to do with race. Yes, there are homeless people with mental and drug problems. Your first post (and second post) turned this into a race issue. You’d get a lot more agreements if you learned to control your racism.
We are even then. I live in an integrated environment and we do not need anyone with psychological problems (including racism) destroying it.
Good luck to you and your problem.
bill,
Normally I respect your comments, but Is your argument based in anything other than the “us vs. them” need to be right?
Please keep politics out of it unless you can do so without the typical “conservatives” vs. “liberals” name calling banter.
“This is why I say socialism is a mental disease…”
Give the man a break. Who expects deep thinking from a person who uses Michael Savage talking points?
“Many homeless people are also veterans - many from the Vietnam War era. You’ll see their numbers increase when the War in Iraq is over.”
I expect their numbers to increase long before we withdraw from Iraq. There is not much provision for transitioning servicepeople from daily combat to civilian life.Vietnam vets wtih post-traumatic stress and other problems were largely marginalized.
We seem intent on repeating our mistakes.
“‘I think many people are realizing they have to be realistic on their prices,’ Cross said. ‘Some have doubled their money in the last five years and if they knock a few thousand off their price so it sells, is no great shakes.’”
More hubris from a realtor. It’s not his “few thousand” and many sellers have already taken those “few thousand” via a HELOC and it’s gone. The reason prices are so sticky is that the “doubled” money has tripled down.
Most who have doubled their money have already spent it. It’s long gone.
OR, FB’s have already bought a bigger new home and now depend upon pulling out a big hunk of that misterious “equity” from the sale of their current home.
I personally know several folks in this category, sitting on vacant homes for 6-16 mo, carrying two mortgages, because they HAVE to get $X from their home. Good luck!
‘“About 75 percent of the homes Krein has dealt with were purchased by speculators who misjudged the market. ‘When you have cab drivers talking about real estate, it’s time to leave the market,’ Krein said.”
I thought the bottom line was when hairdresser’s were flipping houses. Then I read about a Taco Bell manager in OC who bought 7 houses as well as box boys (person?) at the grocery store flipping….
I read in the newspaper about renters in Simi Valley CA buying investment homes in Phoenix planning on making enough money on their AZ RE that one day they too could buy a home in Simi Valley. I knew the jig was up then.
‘What I have found is a market full of homes still hoping to extract the prices seen in late 2005.”
- This is what I’m seeing as well. All the sellers are waiting until the market turns while the houses sit and sit on the market. It’s like being around a bunch of Egyptians living in the state of denial. I just wonder how long this can keep going. I’d like to buy a house before I turn 90, but I don’t intend to support someone until they are 90 by buying right now.
I agree. I watch the prices in my old hometown. They are pretty ridiculous. I see houses that I could see myself living in but they would need to drop 30 - 40 percent in price. That is pretty sad. But I just saw something remarkable. A house that has been on the market for 4 months dropped the price from $214,900 to $189,900. That is a real drop, not the $2,000 drops I am usually seeing.
Summer is halfway over and there is still a ton of inventory. My prediction has been for October 2007 to be the month when denial turns into panic. There is no chance we would buy in NYC but it would be nice if our next destination has a cute little house, with a spot for my wife to garden, that is reasonably priced. That is my American Dream.
I’ve been keeping a spreadsheet with details on some houses that I’d like to buy as well as inventory in the area. I’ve seen the inventory go up dramatically, but the prices have not changed much. I also see that several people are trying to sell or rent the properties at the same time. Both cases at ridiculous prices. I just wonder how long this can continue. People don’t want to lower their prices, but if they have a mortgage, whatever profit they could make is slowly going to the bank.
“Debra Sjoblom, former president of the Salt Lake board, chalks the declining sales up to the typical summer slowdown. ‘Who the heck knows (why)? Is it the heat? Is it summer vacation? Is it just a combination?’ said Sjoblom, anecdotally noting that while the market remained robust through May, it has ’slowed tremendously’ in the past 45 days.”
So let me ask you Debra how were sales last summer and the summe before that? Oh I guess you did not have a summer last year? Why do they even quote these idiots? Why not ask the obvious question like how do sales this year compare to last year.
I agree…what a ridiculous quote. I guess no one was taking vacations last summer when the market was more active here in Utah. And, isn’t it hot every summer? Besides, it wasn’t hot in April, May and most of June.
and people pay realwhores to sell their homes- wierd,but true
And from the same article…
“I think we may flatline in the next quarter, but I don’t think anything is going to go down,” Sjoblom said.
Bowers agreed, saying that, at best, reduced demand may result in a slight “softening” in area home prices.
I just moved from Arizona to Utah. I think I can search back in the Arizona papers to a year or so ago and find these same type of quotes from the Arizona realtors. It’s so predictable. Amusing, yet annoying at the same time.
“After his conflicts with the mortgage broker, Small said the broker acquired the services of a second appraiser whose estimate actually exceeded the broker’s desired price.”
Then go ahead and name the SOB, let the press print it, then give the Appraisers Board a call.
“‘I cannot and will not jeopardize my family’s financial well-being by jumping into a market that has such a high chance of going further south. We are currently renting a nice little home and doing what very few in our society are able to do any more — save money,’ he added.”
Well said. This guy speaks for just about every renter in here, I would think.
Exactly.
“‘Is it realistic for houses to back off by 30 percent?’ asked Larry Murphy of SalesTraq. ‘Why are we even talking about it? Come on. I think prices still have a ways to come down in Vegas, but not 30 percent. Eight to 10 percent, maybe.’”
This guy *has* to be the local Koolaid distributor!!!
“‘My interpretation of Vegas is not that it will have to plunge 33 percent, but rather that Vegas is being promoted into the small elite group of cities that have enough external factors that make people want to own property there that the prices simply are high relative to income,’ said Alex Edelstein, developer of the mid-rise Manhattan condos and Manhattan West in Las Vegas.”
External factors??? Notice he doesn’t name them.
No sense of history whatsoever. Outside of existing basically as a tourist destination, LV has always been about dirt-cheap housing (and soon will be again).
Don’t mind that kool aid drinker. He just wants his comission and the more houses he sells for higher prices, the richer *he* gets. Its like asking a car salesman if this car is correctly priced LOL
Las Vegas is a dump. I wouldn’t live there for anything.
I love listening to the realtors in these (various) markets. On the way up, they all said the same thing, no matter what area (Tampa, Las Vegas and SLC-my personal experience): “Everybody is moving here/wants to be here”, “Prices will always go up”, “It’s dirt cheap for the people coming down from NYC/over from California”, and so on….they all said the same crap.
Over the last 18 months or so I have watched these markets essentially all do the same thing. The realtor “observations” were also all the same, depending on what stage of meltdown the market was in. I remember reading quotes like that (utah article) when Florida began to slow down, and before that, Las Vegas.
Another year from now SLC Utah will be just like all the other states that “grew” before it. They have simply out priced themselves out of buyers. What’s the median household income in that city? It surely can’t afford the prices I’m seeing now. In another year, prices will remain high as desperate sellers desperately hold on to their imaginary equity…just like I’m seeing in Tampa now. During that period the liar realtors will be repeating the drone mantra “Great buyers market, get in now, while you still can.”
In another 6-24 months after that, prices will begin to go down, substantially, just like all the other markets did.
It’s actually quite sad to watch. People I work with wonder why I’m about to rent. They are calling the bottom in 08, lol, apparently they have a crystal ball that can tell such things. The prices in Tampa now are still waaaay over priced IMO, and there is plenty of inventory, which means only one thing….
I’ll rent for now, and stash away my extra money into my “early retirement account”. Good luck everybody.
Jason