Don't you love all the catchy taglines for the RE Market shifts? What do they mean? Like for example Real Estate Bubble? The RE market was really good (untrue this was a falsely driven by predatory and subprime lending, we all know that) but not for all, some really believe to this day their house is still worth what it was at the peak in 2007. In the equine industry it's known as being "Barn Blind" or because I own it, it has magic value above and beyond anyone else and no flaws!
Well last year from January to August 2013 we had what I call the once every ten or so years, RE Bubble in California. The duration is less than a year when it happens, then the prices fall slightly, particularly in 1980, 1989, 2001, 2013.
For some with short term memories, still think the RE Market is once again gaining momentum (like in the RE Bubble) and are betting prices will rise once again this summer. Zillow by the way comfirmed this predicting last November a 24% rise in prices. And the sellers not the agents are pricing houses one of two ways, above the Com-parables because and I quote, Zillow said it is worth this amount or below Market Value to engage buyers into a bidding war. My favorite is when the house is listed on the MLS at market value and because some buyer made an offer with in the first 24 hours, it must be too low, so they raise the price $10-20,000. My favorite the Short Sales have a new twist all the old predatory Countrywide/BAC loans are now being turned over to an auction company, so everyone gets a chance to bid and Buyer to pay the back HOA Fees, Short Sale Negotiator Fee, 10% of the second loans if it is a HELOC and of my favorite, pulse the Buyer pays 5% of the purchase price to the auction company itself. What a great deal? Who does this???
From the trenches my forecast for 2014 is the majority of the RE market has flattened or Plateaued, which I think is a good thing.