Is the Real Estate Market Crash Really Over?

By
Real Estate Agent with Dept of Real Estate

After reading the Wall Street Journal's "The Housing Crisis is Over" by Cyril Moulle-Berteaux, the whole real estate community is excited at the prospect of being over the worst of the crash.  All the economic indicators point to a market that has bottomed out and is on track to be on the way back up.  After all, we're seeing a reduction in inventory over the past several months, and less inventory will lead to a better ratio of sales to homes on the market, which will lead to a better market, right?  I mostly agree with that, and would completely agree with it if we were under different circumstances.  It's always good to have less inventory on the market than we've had over the past year and a half.  50,000 homes in the Phoenix area is just too much.  Especially when you're only selling 3,000 in a month (general figure for AZ MLS). 

However, We are still seeing a reduciton in home values, and I don't see that ending any time soon with the volume of foreclosures flooding the market with bank owned properties and short sale listings.  As a market, we need to flush these out types of properties before we will see values stabalize and rebound.  Right now, listings agents keep slashing prices to get quick offers, just so the banks can deal with the values.  This is causing a trickle effect that keeps pushing values down.  From the looks of things, this could still take some time depending on how our government handles the "crisis".  Either way, it's a great time for buyers and should be so for awhile.  Homes are finally affordable in the Phoenix area again, and all types of buyers should be able to get into something that won't bankrupt them the way the escalation of home values during the boom did.  This is such an interesting topic, there is surely more to come.

 

Thanks for Listening,

 

J.P. Benedict

www.jpbenedict.com

Arcadia, Tempe, Scottsdale, Central Phoenix Real Estate

 

 

 

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short sales
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the housing rise and fall

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Rainmaker
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Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

J.P.

Here in San Diego there is a glut of homes, that are REO's short sales and pre-forclosusres, that are in the pipline. We also, have way to many buyers that want a steal. Until we can reduce the inventory, and re-educate the public, its going to take a little more time for the market here to rebound. I would love to think that one article in the Wall Street Journal could make a big difference.

Yesterday on two court house steps we have 600 homes that were being foreclosed on--- most were going back to the lenders. Investors, do not want to paid more than 50-60 cents on the dollar when a home has been foreclosed on. 

May 09, 2008 03:23 AM #1
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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 Hello, J.P.

          We invite you back to ActiveRain!  

     Much has changed since your last blog post.  

     We would welcome your return.

Aug 27, 2017 06:14 PM #2
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Rainer
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