What in the world is he thinking about?

By
Real Estate Agent with Keller Williams Coastal Properties

Hello there,

Thanks for stopping by.  I'd thought that I would write a little bit this Friday afternoon / evening.

I ran across a bio of a top producing agent in the Los Angeles basin area that I was shocked to see...

He stated that he is an amateur economist but he has been correct about the market trend for the past 15 or so years.  Then without much basis or why, he stated that he expects the housing prices in the Los Angeles area to go down about 50% and about 25% nationwide over the next 5 years.  Something you should know also is that he is primarily a listing agent, as stated in his bio.  He has, and I know this to be true, been in the business and works lots of listings.

My thought after reading immediately is how did he come to this conclusion?  Why didn't he elaborate on the reasons?  Also, wouldn't the sellers reading the bio be scared into listing and selling right now thus creating even more listings on the market?  Doesn't this scream "white flight" to you as a real estate professional?  It does to me!

What do you think?  Do you agree with him or disagree on the state of real estate?  Does Wall Street Journal have it right in saying that we should be up, but barely in 5 years or is this guy the correct barometer in saying that we will see the bottom go out?  Do you think that he should tell this to his clients even though he is not an expert at this?

Well, that is my 2 cents for this day.  Take care and hope that you are doing well with your business and stay strong!

Chun Liu

Team WOWWHEE.com

Comments (4)

Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
Doesn't sound anything like 'white flight' to me, that's a different phenomenon altogether.  But if the guy is right, I'll be ready buy more houses for my portfolio if they go on sale to that extent! 
Jun 08, 2007 12:50 PM
Don Carter
All Star Mortgage, LLC - Haverhill, MA
I read a book a number of years ago by economist Harry S. Dent, and in it he speculated that real estate values would plummet in the 2010 - 2012 time frame due to the demographics of the overall population and where they are in their earning and spending cycle.  His theory was well supported with data from the last 80 years or so.  Pretty interesting stuff...
Jun 08, 2007 02:04 PM
Chun Liu
Keller Williams Coastal Properties - Lakewood, CA

Hello Leigh and Don, Thanks for stopping by and commenting.  I really appreciate your time.

Leigh:  I'm not saying that it is "white flight" but reminds me of the scare tactic that people used in order to get what they want.  In southern California, it is pretty much a mixed pot of people so that there really isn't any "white flight" that I can really think of... not that it doesn't happen.  Oh, and yes, if it bottoms out like that, better to buy than to sell at that point!

Don:  I've never heard of Harry S. Dent, but very interesting how people are predicting various things.  We'll see if his theory comes true or not.

Thanks again for stopping by!  Talk more later.

Chun

Jun 15, 2007 11:43 AM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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