Friday, July 27, 2007

Take heart house hunters!

Thanks to Reader Greg for directing me to an article on TheStreet.com that should give hope to my fellow forlorn house hunters. (People, I have a day job; I cannot read everything by myself. I am not a machine!)

Here's an excerpt:

"In essence, prices are poised for a fall far steeper than the 2.2% year-over-year drop in the median home price reported Thursday.

"Home-sellers are clearly not happy with the offers they are receiving -- if they are receiving offers at all -- and the disconnect between presumed valuations on the parts of buyers and sellers remains fundamentally hung up.

"The bubble disbelievers (aka cycle deniers), soft-landing lubbers and those who talk confidently of "containment" as if subprime lending was a virus that could be quarantined (or, perhaps, a rogue government meant to be invaded and toppled), all share a shocking blind spot: they refuse to acknowledge that all lending, as Countrywide itself conceded earlier this week, is interdependent.

"Debt itself is no longer 'contained,' but has actually been unfettered to allow the freer flow of investment dollars. Actions aimed at minimizing the perception of risk levels for investors and borrowers have created the unintended consequence of enabling those unprepared for bad news to walk right into it.

".... Recent reassessments by the National Association of Realtors predict that housing won't recover until at least 2009 are welcome, if a little late."

Read the whole story here.

3 comments:

ProblemWithCaring said...

Thank GAWD! The National Association of Realtors AND mortgage brokers and realtors nationwide were starting to sound like teh Defense Department under Rumsfield.

Its OK agents, let that cold, sweet reality sink in....come to the light....

arroyogrande said...

It's in the Realtors' best interests to keep sales flowing, no matter if the price is up or down. Eventually they would have to start talking down sellers, in order to get the houses selling and the commissions flowing. House sale closed equals commission. No closing, no commission. "Coffee is for closers".

Kate said...

Arroyo:

There was a time when Realtor's would turn down listings because they knew they couldn't move a house at the price the seller set.

I suspect we will return to those days by Q1 '08.