This is what people are referring to when they say prices revert to the mean. You can clearly see the bubble of the late 80s and the price deflation that followed. You can also get a sense of the magnitude of our current bubble.
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Just for fun today, I want to share a couple of items with your today. First is an email I was forwarded by a reader. It shows the desperation of realtors to find knife catchers, and their arguments are completely refuted by the chart above…
This was an interesting blog I found that I wanted to share with you……………
Here is what the thought is of todya’s buyers market…
There will always be a stand off between buyers & sellers, in a buyers market. Sellers eventually give up some in but not nearly as much as ALL of the buyers sitting on the fence would like. This explains why the slowdown of RE in the early 80’s prices NEVER reverted to the 70’s levels. Then the next RE slowdown occurred in the 90’s and once again prices never did return to the 80’s levels. And in the current slowdown in prices, if histroy repets itself, should NEVER drop back to their 1990’s levels
In the end it is being said that the market will bottom out in 2008 & interest rates will drop to historical lows. (we are almost there now!) 2008 will prove to be the BEST time to buy. BUT, very few buyers will have the COURAGE to take the plunge until they know for a fact the bottomed out! UNFORTUNATELY, nobody rings the bell at the bottom, instead buyers must wait for wait for signs that the market has officially improved,when all the buyers get off the and buy. The conditions will not be prime at that point. It goes on to say that the prime time to buy will be in 2008, with many choices, GREAT opportunities, pressure on prices the absolute best interest rates and the knowledge that in time , the market will hit higher highs again, than those of 2006.
Your Realtor who put your name in the “Home Buyers Scouting Report” can help guide you to create wealth in this market for the long term! Using this system to shop and tracking those properties in your notebook that you like will give you knowledge to have them negotiate the best deal possible.
Have an Amazing and profitable 2008!
Indy Mac Bank & the Home Team Phil, Ron,& Steve are here for you as well!
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I debated to myself whether or not to include the links and the pictures above. Is this free advertising for them, or is it over-the-top public humiliation? I will leave that judgment to all of you.
How do you like the varied use of fonts, font sizes, bold face and random CAPS LOCK?
It does get worse though, below is quite possibly the worst description in the MLS:
Price: $1,656,888
| Beds: | 4 |
| Baths: | 4.5 |
| Sq. Ft.: | 3,150 |
| $/Sq. Ft.: | $526 |
| Lot Size: | 6,800 sq. ft. |
| Type: | Single Family Residence |
| Style: | Contemporary/Modern |
| Year Built: | 2004 |
| Stories: | Two Levels |
| View(s): | City Lights |
| Area: | Quail Hill |
| County: | Orange |
| MLS#: | S515386 |
| Status: | Active |
| On Redfin: | 26 days |
* * LARGE LOT ON VIEW SIDE IN QUIL HILL OF CHANTILLTY TRACT. * * 4BED, 4.5BATH, EACH BEDROOM WITH BATH, * * HUGE FAMILY ROOM WITH /FIRE PLACE, * * FORMAL DINING ROOM WITH SIDE YARD. * * KITCHEN COUNTER TOP IS GRANITE. * * STAINLESS STEEL APPLANCES, DOUBLE OVEN, * * BUILD-IN STAINLESS REFRIGERATOR, * * GRANITE TILE FLOOR IN ENTRANCE AREA, HALLWAY, KITCHEN & ALL BATHROOM. * * MASTER BATH ROOM OF SINK COUNTER TOP IS BUTIFULLY GRANITE, MASTER BEDROOM WITH BALOCONY TO LOOK PANORAMIC VIEW, * * LAUNTRY ROOM IN 2ND FLOOR WITH MATAG WASHER & DRYER. * * HUGE BACK YARD WITH A BIG SIZE OF BUILD-IN BBQ, 3 PATIOES AND A WATER FALL. * * ALARM SYSTEM. * * NEXT TO CUL-DE-SAC. * * COUMMUNITY POOL, TENNIS COURT, CLUB HOUSE. * * CLOSE TO PARK, SCHOOL, SHAPPING PLAZA, FREE WAY.
How many errors can you count?
