Friday, May 30, 2008

The Undaunted

My friend sent me this article today from the venerable NYT. It's basically two letters. One is from a prospective buyer saying: "get real." The other is from the "undaunted" seller saying: "I'll take my chances." Well, I suppose if you have the luxury of taking your chances in this market you aren't a real seller anyway and indeed your home will not sell. So, rather than write that response, why not just take your house off the market? Stop wasting everybody's time.

If you're shopping in Sherman Oaks and really feel the need to send correspondence to a seller, why not just email them a link to Tim Hebb's post today on Redfin? It's faster. It's more compelling.

I'm still waiting it out folks. This isn't the bottom. It's not even close. If anybody is undaunted here, it's me.


Anonymous said...

I think some sellers here on the Westside (SM & PP) think that potential buyers should be honored that we have the privilege of making an offer on their overpriced houses. Deeeeelusion.

Anyway, forget about those stupid sellers for now -- just saw Sex in the City and there was a nod to the popping of the housing bubble! whoo hoo. It was like Sarah Jessica Parker was saying "Hi Kate in the Valley and everyone else that reads housing blogs". Not really, but it was fun. You'll have to go see the movie and find the little tidbit yourself -- don't blink!

Anonymous said...

Thanks for the link to the blog at Redfin, Kate.

And thank you to Redfin--and to Zip Realty and Zillow--for having the guts to publish data and blogs that in effect make the case that housing prices tomorrow will be a lot lower than housing prices today.

Back in the recession year of 1975, when the stock market was in the tank, there were two interesting developments that changed the status quo:

1) The SEC on May 1, 1975, deregulated fixed stock-brokerage commissions, prompting one Charles Schwab to position his fledgling firm as a discount broker.

2) Vanguard Group opened for business, pioneering the concept of low-fee index mutual funds.

Schwab's now a giant. Vanguard is the biggest company in the mutual-fund industry. Both challenged the overpriced entrenched incumbents and won.

So it's great to go to Redfin and read a blog that essentially tells me now's a lousy time to buy a house.

When I am ready to buy, I assure you I will remember which firms--Redfin, Zip--stood up for transparency, honest discussion, low transaction costs and market efficiency.

And the incumbent agents who continue to feed a line that housing prices never fall? Sorry, you are out of commission.

Anonymous said...

Hey, Kate! You are 100% in the right that the bottom is no where in sight. We're not even halfway there yet. And this isn't wishful thinking or guesswork on my part. Basic macroeconomic principles put us back to 2001, and every housing bubble in the past half-century has overcorrected, so we'll most likely go lower. People just can't get over the brainwashing the last 6 bubble years have done to them and what they expect L.A. houses to be worth.

Anonymous said...

Thought this might interest you:

Tracking foreclosures in Los Angeles

Anonymous said...

Look at the headlines from yesterday regarding the foreclosure rate and you will see who is really undaunted!

Laura in L.A. said...

Hey, Kate, is everything okay? We haven't heard from you for awhile. I miss your acerbic wit! :):)

Hope you're just busy, and all is well.

Laura :):):)