I originally wrote this blog back in October of 2006. It was my very first blog but I'm reposting it so we can look back at how close I was to my predictions. Please note that when I wrote it...I wasn't as experienced in blogging as I am now but my knowledge of the market was pretty close to the outcome we are seeing now so enjoy the content!
Unfortunately for sellers... they are still in that mode that it's still a sellers market and they are still looking to get that big 25% return we were all getting the last 3-4 years, I ...as well buy property and sell,rent or flip or whatever else you want to call it so I can relate to their disappointment.
But because of rising property taxes and ridiculous reasons insurance companies just drop HO's like a hot potato...we will start to see a change. Prices are starting to level off and I anticipate that they will surely start to drop at a drastic pace if something isn't done.I remember when things were different and they were just used to those crazy returns. If you think about it.... in a normal market we should be seeing about a 3-8% return.
That market was unreal and it did exist but I was thinking that eventually it will have to change and we'll look back and see it was fake...never should have been and although people have capitalized on it....there are some who will probably be hurt badly.
I'm surprised at how many people qualified for mortgages that couldn't even afford to pay their cell phone bill. How could this be real?
I can't tell you how many price reductions I see in the MLS and how much time sellers are wasting. This is the new meaning for most price reductions. I tell my clients that we'll keep reducing until the market reacts.... or if they continue to insist to price too high...they'll sit longer on the market and reductions will continue.
If a homeowner insists on pricing their home way too high and they get an offer without any comps to support it...then how will it appraise? Will appraisers puff up their numbers? Or will they follow the rules.
I hope that whoever is monitoring this will understand that it was out of control and unrealistic. It can't last much longer and this will cause many homes to be lost if prices come down and people lose their jobs.
These wish prices can't come true for too much longer.
Remember....what goes up ...must come down!
For more information please contact Neal The Real Deal Bloom-CRS-Realtor® /Remax
2500 Weston Road ,Suite 103
Weston FL 33331
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