Advice For Realtors From The Grunt
The Property Grunt says that the real estate bubble in NYC has finally started to leak. He has been predicting for weeks that the market has turned and today’s NY Times article confirms his suspicions.
Snip…
“How far will prices go down? I have no idea. That is up to the market. But as I stated before this has become a game of chicken between buyers and sellers and now we are waiting who is going to blink first. And buyers are more motivated to keep their eyes open.
Sellers are now in deep s**t. The bidding wars of yesteryear are on their way out and the days of wine and roses are gone. It is time to start getting realistic and doing the numbers and figuring what is the most optimal strategy for your property.
This means figuring out how much of a price drop are you willing to undertake even if it means taking a significant chunk out of your profits. If you are hoping for the return of desperate buyers, it’s not going to happen. If you are determined to wait it out, be my guest. As long you can afford the maintenance, mortgage and it is worth your time to hold onto for the next boom, which will be in a couple of years. But get into your mind that the boom is over. The sooner you accept that the better off you will be.”
More…
Snip…
“How far will prices go down? I have no idea. That is up to the market. But as I stated before this has become a game of chicken between buyers and sellers and now we are waiting who is going to blink first. And buyers are more motivated to keep their eyes open.
Sellers are now in deep s**t. The bidding wars of yesteryear are on their way out and the days of wine and roses are gone. It is time to start getting realistic and doing the numbers and figuring what is the most optimal strategy for your property.
This means figuring out how much of a price drop are you willing to undertake even if it means taking a significant chunk out of your profits. If you are hoping for the return of desperate buyers, it’s not going to happen. If you are determined to wait it out, be my guest. As long you can afford the maintenance, mortgage and it is worth your time to hold onto for the next boom, which will be in a couple of years. But get into your mind that the boom is over. The sooner you accept that the better off you will be.”
More…
posted by Little_Silvered at 5:49 PM
5 Comments:
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It's a game of the last moron standing. All the morons have bought into the congame by the real estate industry. They are in the game already. Noone left but soon to be desperate sellers in over the head losing gobs of home equity and possible bankruptcy while rational buyers wait patiently for prices to drop 50% for condos and 25% for houses This all happened in early 1990's.
Just don't expect a paid commission realtor or builder who is desperate to sell his homes let you in on the past collapse. Many many realtors and builders went bust in early 1990's.
Here's what Federal Reserve Governor Poole said in a speech last night.
However, if a housing finance agency were to fail, the scale of these agencies is so immense that it would certainly pose risks to the broader financial system.
"We need to have a clear and unambiguous receivership relationship," he said, referring to an orderly way to wind down and liquidate assets if insolvency were to happen. Fannie and Freddie aren't allowed by law to declare bankruptcy. "If there was a solvency problem, it would all end up in the courts," he said.
This is bad news. Corruption and book cooking going on in this industry. This all happened in early 1990's with the S&L crisis.
Paul Volcker warns about asset bubbles. A must read.
http://www.washingtonpost.com/ac2/wp-dyn/A38725-2005Apr8?language=printer
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