RMLS Market Action September ’08
By Charles Turner
Things are tough. During our sales meeting today an agent said he has 17 listings. Fifteen of them are short sales. He said that some banks he has worked with have agreed to losses of over six figures; another won’t budge on $2000. We’ve seen some amazing things happen in our economy in the last few weeks. We get to see instant reaction in the stock market but real estate reacts at a slower pace; at least the reporting of it does. It appears that the bleeding may have slowed but what things will look like a couple of months from now or years from now is beyond prediction. There are some great deals out there but there in nothing that says they won’t be even better deals in the future. Either that or someone else will have made a move. Only time will tell if it was a good move.
Things are tough? Understatement?
We’re about to enter an economic downturn the likes of which only a handful of people alive have ever seen. Deflation, panic, stagnation, rising poverty. Not much good on the horizon.
And to what can we trace the genesis of this collapse? Real estate. Isn’t that amazing? But then, I’m just saying that out of “sour grapes” because I “missed the boat” by not buying.
Of coure that boat is now sinking……..
naysayer,
Well at least where RE prices are concerned..? I’d say things are looking up! When lenders are willing to eat 6 figs, I mean c’mon, obviously ‘they’ want to put it behind them? 15 out of 17 “listings” are short sales? That’s (1) agent granted ( but it’s a start! )
I’ll have to agree with John Bogle at Vangard though, right now the Bear Market in equities has become an economic problem of it’s own? In my world it’s much more important that investors make the obvious distinction. Companies make products and ‘have’ earnings. ( Your house just kind of sits there and runs up a tab )
Since we all know RE isn’t turning around any time soon, what’s more important to you as a member of the workforce? You keep your job and continue dollar cost averaging into your 401K, or you lose your job, the stock market continues to plummet but somehow… miraculously, your home continues to appreciate? Well what good is that going to do you when you no longer HAVE a job with which to make the payments!?
Just a thought.