Quote:
Originally Posted by 1stLand
2) Yes prices have come down since 2007 in excess of 20%
What I am skeptical of, is a further drop of 20% from today's selling averages.
Some people out there have listed their home like it is still 2007 because they need to recoup their initial investmennt (downpayment) plus they dont want to take a loss on their house.
These certain few will inevitably have to take a huge loss on their home if they would like to sell in today's market.
So when I am referring to the unlikely scenario of a 20% drop, I am talking about a further drop in a home purchased today at or below current market value.
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Let me first start off that it's refreshing to have a realtor that is at grips with the reality of the current real estate market. There are a lot of realtors, mortgage brokers and financial advisor on this site that are still stuck in the past longing for the good 'ol days of high commissions for little work and therefore aren't seeing things clearly.
My real estate disclosure is I see myself in my current place for 10+ years minimum and mortgage free so I have no vested interest what direction the market goes in the short to medium term. I see the facts which don't paint a pretty picture.
Your point above seems fair but I am hearing of a lot of nice homes in nice areas that have been slashed around 20% (around $100K) from initial list price and still not selling. These are homes that have been on the market since late spring/early summer. They were probably over-priced to begin with but still interesting that they are still on the market after such large drops in price. This is with record low interest rates. I think it comes down to that homes are still too expensive (ala home prices 4-11 times median income but historically are 3-4 times). This makes me think that we have some more room to drop. Whether it'll be another 20% from current sales is a fair assessment but I think we still have more pain to go over the next while.