Thursday, August 09, 2007

Red Flags Everywhere

If you have real estate OCD, like I do, then you have surely read that when the 80's boom was over listing agents started flat-out rejecting listings because they knew they couldn't move the house. Well, today Redfin's blog has a nice little article mentioning that very thing happening right here in the Valley. Go on. Check it out. Shoo.


Anonymous said...

Also at this point (in the 80's)things seem to happen relatively quickly - a quick chain of events that no one could really control.

I don't see such panic in the houing market now, no matter bloggers like you believe.

One post before this, you talked about a 1.2 mil dollar dream house in Sherman Oaks. That is the reality and will be for a long time.

Kate said...

Dear Anonymous:

It is unclear why you think prices dropped so quickly after the 80s boom because you do not cite any facts. Contrary to your suggestion, it took about twice as long for prices to bottom out as it did for them to peak.

Still, you are correct that there will be $1.2M homes in Sherman Oaks for a while longer, but inevitably there will be a 50% drop over the next several years. History repeats itself.