We've all probably seen the Oliver Stone movie "Wall Street" from the late 80's, starring Charlie Sheen and Michael Douglas. In the most famous scene from that movie Michael Douglas, portraying the corporate raider Gordon Gecko, makes a speach at shareholders board meeting in which he states, "greed, for lack of a better term, is good." For years I kinda of bought into that notion as it applies to our capitalist economic system. However, as I've seen first hand our economy go through several boom and bust periods I've come to realize that GREED is not good. Ambition is good, greed is not good. But I suppose the speech Michael Douglas made would not have resonated nor have been as glamorous if he stated that "ambition is good."
Unfortunately in the Phoenix real estate market greed has set in again. This time amongst the buyers of real estate. It's almost as if they are reaping vegeance upon the sellers for the run up in '04 and '05. Many buyers are coming in from out of state and making very low ball offers on properties, such as bank owned homes and short sales, that are already priced well under market. Then when the offer is rejected, they become indignant, not understanding, even though we inform them, that the market here in Phoenix has already suffered a 30-40% pull back. Many of the market that these people are coming from have not begun the decline yet, and all they hear in the media is that the market is due for a 25-30% correction. In Anthem where I reside, some home prices have pulled back to 2001/02 levels.
So here we are again, at an impasse. The buyers want more for less, and the sellers aren't willing to go down further. Greed got us into this mess, let's not let greed excerbate and prolong the misery. There are some great deals out there, at the listed price. Buy and hold long term and you will win.
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