Kaushik, I wish I could be in a great market :) my home has not appreciated in the last 3 years, bad eh? but true !

Kaushik, great points. Folks follow the national media doom & gloom talk way too easily, without actually looking around for themselves to see what their LOCAL market is actually doing. As you can see by reading the stats reports in my blog, our local market is still booming and is way up over this time last year. However, there are still plenty of folks around here that believe the end of the real estate world is near, thanks to our national "journalists."  

Kaushik.....  this is a great point. I am big on stats and I just did a post on foreclosures vs homeownership. We need to educate both the general public, the media, and even those in the real estate industry. OFHEO is giving skewed numbers and the public needs to be made aware of this. Thanks for sharing this.

Good post.

Carolin Benjamin
Bob and Carolin Benjamin - The Benjamin Team
Keller Williams Integrity First Realty
Gold Canyon Arizona

Kaushik - Very good post. You are right on...the truth typically lies somewhere in the middle!

We have the same thing here.  Prices are up even though the inventory is high.  It was in the paper just a few days ago.

I am seeing that the values are up or down depending on the zip code. I am sure that the realtors are seeing the same thing.

The sky is falling... 

Roughly 1/2 of the listing I previewed today were either short sales or bank owned.  The part that I don't understand yet is the banks unwillingness to budge on price.  Many bank owned homes are sitting on the MLS at regular market value paying selling agents regular commissions but not as negotiable on price as I expected.  All of the investment bankers must have gotten together and made a pact not to reduce prices in fear that they would all go under in the process.  Well interest rates aren't going to get much lower and even if they do, with new lender regulations, very few buyers are able to qualify for financing.  What's going to happen if things stay the same and asking prices continue to drop?  I know I'm licking my chops with the idea that I may be able to purchase investment property with little money down and no negative income.  As rents continue to rise, I'm starting to believe that it just might get that bad.  Of course this will help the rich get richer and the poor get poorer.  Almost like it was all planned out.

I look at affordability and Rental Return / Mortgage costs

Both are historically still way out of line in most markets

Interest rates are up from bubble, lending has tightened, first time buyers were 'pulled' forward

We will drop in almost every zip code. Anything else is irrational

When times are good, most people tend to forget that the opposite cycle will return again.  In any market, there are people buying and selling so the key is to plan ahead so you can go with the flow! Great topic!