That dark cloud looming ahead is not a mirage. The relative quiet and stillness of the moment is actually a vacuum building up dangerous power; when unleashed it could harm alot of consumers.
Let's set aside for just a moment last week's news about the nation's fifth largest investment bank having to take out a 28 day credit line from the Feds. Instead, listen to the printing presses as it begins to release more devalued currency.
It's a couch potato's prediction only, I'm not an economist. I am just a 1970's kid who sat in line with my mother as we waited for our turn at the gas pump in L.A. (I think we had Even days assigned from the license plate of the station wagon), and watched as she also tried to buy a $37,000 home in West Hollywood @ 18% interest with same home the following year at $55,000 @ 19.5% interest. I'm the same kid who watched bad monetary, foreign and energy policy at work, a war the country was still trying to forget, a foreclosure market that turned into an Industry.
My advice to my clients for March, 2008: It's time to price listings accordingly. Our 8 years of historic low interest rates are going away. While there is still plenty of profit left in the Seattle real estate kitty, give some back before our government's decisions take it away for us. The difference in rates are going to be absorbed by lower home prices. Adjustments will be taken. Do you still want a listing on the market should this happen?
To the client who thinks the Spring weather is going to make the acreage bloom and justify the 90k premium within asking price: It won't happen. For the seller who is timing his own sale by squeezing out the 20k above recorded comps: It's time to get real.
The financial weather report is coming: A storm is approaching. And the 1970's left a message at the front desk.
Comments(1)