When Markets stall and Crash, are We to Blame?

By
Real Estate Broker/Owner with Christian Realty San Antonio 540730

Yes, this old building is an exaggeration of property going for hundreds of thousands of dollars over "real" value.  It does make the taxing districts happy.  Lenders too.  What about the future for the owners.  

We do not see much discussion of the impact of today on tomorrow.  By that, our inflated prices and the impact on the owners when they want to sell and during their ownership the inflated taxes they must pay.

Not trying to sound like doom and gloom, only asking questions not seen on any social media platform.  We, as professionals, are facilitating what is coming tomorrow even if we are not aware of it.

Does that make us bad people?  No, we are doing what our clients want.  We can only advise them to the best of our ability.  We also, in my opinion, owe them the bad news of what tomorrow might bring.

We can argue supply and demand which does have some play here.  Yet not all.  Those large corporations paying thousands over FMV with their cash offers are hurting local economies.  Prices for rentals have skyrocketed.  Where do folks go when they cannot afford to pay rent?  Public housing?  Not enough.  Another burden on tax payers.

There is no simple solution here.  Just wanting to say out loud what no one else is saying to make us all stop and think.  What's next?

Posted by

DOMINICK A. DINA, MA, REALTOR®, GRI, e-PRO, TAHS, Broker/Owner

Christian Realty San Antonio     

www.ChristianRealtySanAntonio.com

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Comments (10)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello and Happy Friday.  Thanks for the great information in your blog to share with us here in the Rain.  Make it a great weekend!

May 06, 2022 07:41 AM
Dominick Dina, MA, REALTOR®
Christian Realty San Antonio - San Antonio, TX
GRI, e-PRO, TAHS, SFR, Notary Public

You too Will.  Hope you are healthy and being productive.  Thanks for leaving a comment.  Much appreciated. 

May 06, 2022 08:54 AM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Dominick- it's an interesting topic. Agents are doing what their clients are asking of them. And yes pointing out all aspects is important. Is there someone to blame?  I don't think there's a single person. We all have to be responsible and do our best to make our own best judgment. 

May 06, 2022 03:42 PM
Dominick Dina, MA, REALTOR®
Christian Realty San Antonio - San Antonio, TX
GRI, e-PRO, TAHS, SFR, Notary Public

Good points Kathy.  My worry is the folks who will be hurt in the near future without knowing it is coming and we cannot do anything about it.  Sad.  Afraid we will take the blame.

 

May 06, 2022 08:00 PM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

May 07, 2022 07:17 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Dominik,

I was so glad to see your post featured in Kathy Streib Sunday post including her "Ah-Ha" moments for the week. It's an interesting time right now and we all have to make decisions. Are they right or wrong? Who knows? Its only what we can do with the given circumstances we are dealing with at this moment in time.

May 08, 2022 05:17 AM
Dominick Dina, MA, REALTOR®

Hi Dorie - agreed - these are uncertain times for real estate.  The large RE corporations are not doing the markets any favors by their purchasing of properties at inflated prices.  What will happen when the taxes catch up?  How will forks be able to afford a home in 5-10 years.  We shall see.  Thanks again!  Dominick

May 09, 2022 06:17 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Dominic. Want to get way over real value for that place? Put it in Key West on a postage stamp lot, give it history and contact Gary Thomas. He can give you a list of agents who will accommodate you! And, he may even throw in true value! Enjoy your day.

May 08, 2022 05:32 AM
Dominick Dina, MA, REALTOR®

Hey Wayne - wish it was my listing because it does have history.  Old slave housing to be exact.  However it does make the point the market is crazy right now.  Have a great week!  Dominick

May 09, 2022 06:19 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Dominick,

As REALTORS we are not to blame for what is happening and I do not believe that this is a bubble that we experienced in 2008.  But if the Fed does a poor job of helping to stifle this inflation it may send us into a very deep recession. I am praying this does not happen. 

May 08, 2022 04:48 PM
Dominick Dina, MA, REALTOR®

Good morning Sheri - some agents are given the prices they as marketing properties for.  Less than 1000sf for $200k.   Really?!?  Agree the Fed Govt needs to take actions to reign in the ongoing inflation trend.  Guess we shall see.  Have a great week!  Dominick

May 09, 2022 06:21 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Time will tell with the values of homes and where people are when it comes time to sell. There will be a fall back for sure and for those that need to sell before they can appreciate equity it could be a harsh reality

May 11, 2022 03:05 PM
Dominick Dina, MA, REALTOR®
Christian Realty San Antonio - San Antonio, TX
GRI, e-PRO, TAHS, SFR, Notary Public

Thanks Ed.  Agree.  We cannot see into the future however our past can predict what will happen to folks when the time to sell comes.  There will be gnashing of teeth.  Have a good week. 

May 12, 2022 05:46 AM