WHO WILL SURVIVE THE BIG FLUSH?

By
Real Estate Agent with Century 21 The Neil Company Real Estate

With the advent of the deregulation of the banking system and the years of reckless lending which the de-regulation led to we are experiencing a depressed real estate market in a depressed economy.  Despite housing prices being lower than they have been in some years and iinterest rates making many investors drool, the housing market remains depressed.  As people loose their homes and the devalued, Bank Owned, properties hit the market we would expect an upturn in the market as they are snaped up and the supply decreases.  In spite of people in snatching up the opportunity of their lifetime the hemorrhage of foreclosures and short sales continue and appear unending.  

Recently a young couple called me inquiring about their dream:   a wonderful little home on a great piece of land with a spring and a good productive well.  The house was Bank owned and had sold a couple of years ago for over $300,000.  It was now on the market with an asking price below $130,000.  We managed to negotiate closing costs of $6000 and a home warranty and this blended family of 6, living in a mobile home park, will soon be in the country, paying approximately the same principal, interest, taxes and insurance they previously paid for space rent and house payments on their trailer.  Their children can run on their land and have the freedom children deserve in childhood.  When I see those boys running and loving life on dirt, instead of concrete, I see some good in the awfulness of this time we are experiencing.... a time where people loose jobs and homes.   Many wonderful and tragic experiences unfold before our eyes, as Realtors, each day. 

Another fallout attributed to the "big flush" is people who came into this business as a way to earn big money fast when a sign planted in a lawn was a sure payday in thirty days, but that is a whole other blog, are dropping out like flies when it rains.  I see colleagues with more education, working harder for their principals and relationships strengthening within offices and between offices.  Those of us who are still here after surviving the soaring 18% interest rates of the early eighty's and the  downturns of the market in the early eighty's and again in the ninety's are as fresh water to those who came into the market later and are sticking.  The new comers are a breath of fresh air to us elders as they bring freshness, new ideas,  new and sometimes better ways of serving others who use our services. 

When the flush is complete who will be here, who will not, and what will be indelibly changed?  Those are questions that only time will unfold answers to.  I am convinced that much good will come from this time of education and learning.  Hang in there and I hope to see you all after the big flush is complete.    

 

Comments (1)

Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Shirley,

What a lovely post, we are convinced that a lot of good stuff is already happening on a daily basis.  Thanks for the inspiring post.

Feb 23, 2010 09:42 AM