I just ran a quick search in RMLS: Portland (areas 141, 142, 143, 148), pending, one day on market in the last month. There are 52 results that span a price range from $127,000 to $1,275,000. Strong eveidence that an aggressively or under priced house can sell in any market at any price range.Portland Real Estate Blog
But now the “home prices are going down” meme has escaped into the national psyche. Previously it was only found in the domain of relatively obscure websites and blogs. I admit I don’t watch or listen to a lot of mainstream stuff, but I do listen to NPR and yesterday on their news quiz show Wait, Wait don’t tell me they were cracking jokes about falling real estate prices. There have been other mentions of stagnant and falling real estate on more serious NPR shows like Marketplace as well.
The idea is out there now.
How long till we see a skit involving a real estate agent, a mortgage broker and some hapless buyer on SNL?
It would seem that more and more potential buyers are realizing that it pays to wait and that’s likely to have even more of a dampening effect on sales and prices. The psychology has definitely shifted.
Can’t say it better than Peter Schiff:
Even when reporting on the subprime mess and the move to raise lending standards, most in the media still get it wrong. They seem to think the emerging credit crunch is a problem for home buyers as it makes qualifying for a mortgage that much more difficult. But, by preventing buyers from overpaying for homes, the credit crunch is actually a blessing in disguise. Tighter lending standards will help precipitate a crash in real estate prices. What could be better for potential home buyers than cheap houses? Sure they might have to wait a few more years until they can actually save enough money for a down payment, but since the purchase prices will be so much lower, those down payments will be easier to accumulate.
http://tinyurl.com/2xdh8c
Unfortunately I see many houses that have been sitting on the market for 90-120 days because the sellers firmly believe that their house appreciated 15% every year that it was owned (they get this information from the “media”). Overpricing homes has kept Forest Heights listings at 55-65 since February (and that doesn’t include the “For Sale By Owner”).