I cannot figure out why these blogs on a real estate bubble have cropped up all over the web.
Its almost like they are invested in a big real estate bust. But why? Are they secretely hoping real estate falls so people put their money in stock? Are they shills put out by Shearson Lehman or Merrill Lynch?
Who are these guys? And why are they hell bent on proving real estate is a bust?
Certainly they must be having a hard time. Oh sure they have some data. But its like my cousin mentioned over the holiday. He had just been up in Sacramento California and a newspaper exclaimed: FORECLOSURES DOUBLE!
Upon looking at the details, he noticed that they went from almost nothing, to like wopping 170. And we see this in the newspapers all the time. Why? Because bad news sells papers.
Not to mention it looks like we are starting to see the excess inventory starting to move. As it sure seems like I am seeing more and more sales signs in many neighborhoods as I travel about town.
Okay let me use real data to back up my post here:
Sales of new homes rose in November while the backlog of unsold homes fell for a fourth straight month, providing hope that the serious slump in housing could be ending.
Sales of new single-family homes rose by 3.4 percent last month to a seasonally adjusted annual rate of 1.047 million units, reflecting solid sales increases in every region of the country except the South.
I have written much on this so called bubble myth in the past. The reason is that I went thru a real bust back in the early 90's. Meaning prices crashed in one year by 35%.
My listings presentation was real simple. It started off with something like this," Do you want to sell you house? How bad? Because I am here to tell you the truth, and you may not like the truth, but if you want to sell, you are going to have to have a real good reason, because you more than likely won't get out of this property what you thought you would."I would then explain staging and then current prices and detailed how and why they had to be in front of the market.
Needless to say, I had a bunch of dissapointed people, but the people that needed out, got out. And the ones that did not, held out and I am sure sold for a bunch more money later.
I think despite what the "bubble bangers" are saying the real issue in the market is that we have way too many real estate agents. Making the available sides much less than you might think.
I will go thru this in a bit more detail in my next post.
Recent Comments