When is the market going to bottom out?

By
Services for Real Estate Pros with Canyon Ridge Realty LLC SA040820000

I was attending a valentines party yesterday and in a conversation with several people the topic of real estate came up.  One savy investor pointed out that now investors can actually cash flow off rentals.  This is someting that we haven't seen in well over 5 years.  In arizona we now have some homes selling for far less than they cost to build.  I'm talking about nice sized homes for less than $30 dollars a sq. ft.  The conversation then went to the topic of when and where is the bottom of this monster?  Again this savy investor brought up the alt a's and option arm's which he believes will be the next big hit to our industry driving yet another market correction.  How much farther can we go?  When will we see the the next rush of investors looking to snap up any and all deals that pop up?

Love to hear your thoughts....

Comments (13)

Veronica Cabrera
Independent Real Estate Broker - Huntington Beach, CA
Realtor

I would say that this crisis or declining real estate prices will last for another 3 to 4 years. If we study the market in the past, we have cycles from 7 to 10 year to switch markets. This new era started just barely 3 years ago, so we have a long way to go, for which I am glad since now buyers can afford decent housing prices.

 

Feb 15, 2009 07:00 AM
Paula Smith
RealtyPath St. George - Saint George, UT
Paula Smith Associate Broker RealtyPath St George

No one will know when or where the bottom is, until we are moving up and looking back; much like we didnt realize we were at the top of the market until we began to decline.  What's that saying; hind site is 20/20.

Feb 15, 2009 07:13 AM
Dean Curtis
Coldwell Banker Kittitas Valley Realty - Ellensburg, WA

Hey Veronica, Doesn't cycle mean arriving back to the point of beginning? I hope that cycle does not mean going in one direction for that period of time. 7 years, I wonder if Walmart is hiring? Dean

Feb 15, 2009 02:21 PM
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I agree that I have been seeing more and more investors hitting my website and blog asking questions about rental properties. They are finally realizing that with prices dropping they can get their mortgage paid with the rent they could collect.

They never thought about with all the foreclosures that these people need a place to live and if they supply the place, the people will come!

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Feb 18, 2009 07:44 PM
Anonymous
Bob Sinclair

The Market will stay low for the next 4 years,I have $800,000  in North Scottsdale now worth only $380,000 people from California and Texas drove up the home prices to high.and these short sellers make me puke ,you are driving down the prices,STOP IT There are 20 people living in a house down the street from me.there goes the neighborhood.

Dec 15, 2010 07:14 AM
#5
Anonymous
Bob Sinclair

What I meant to say is my Home Was worth $800,000 and now worth $380,000 a person down the street has his friends living in a motor home in his backyard and the HOA will not do a thing about it because you cannot see it from the street.

Dec 15, 2010 07:24 AM
#6
Anonymous
Sean Barna Griffin

People WAKE UP There are over 15 million homes that people can not even pay the teaser interest rates, What will happen in the next 2 years when they have to refinance and the owe more on their Home than it is Worth, over 1 Trillion more money will be lost,and the Banks will go to the Fed to bail them Out.This Time there will be no Money.House Prices will Drop another 10 to 20 Percent.

Jan 09, 2011 02:40 PM
#7
Anonymous
Colin Lakewood

The disregard of the buyer of a Home After forecloser,I bought a home in North Scottsdale for 1.5 million the backyard Grass and trees had been Removed ,the concrete cool deck slab and the pebbel stones in the pool were had been Jack Hammered out,the neighbor next door also told me that a Huge Barbeque  and outside stone Fireplace had also been torn out.all the window  blinds and the Iron Entry driveway Gates had been removed , and they even took out the Stained Glass front  door and replaced if with a Cheap Door.the carpets had Dog Pee and Crap Stains in every room ,and Dirt in all the Shower and Toilet Drains. People that do this are Scum Bags And A holes of the Lowest Order,I bet they cheat people out of money and are Major A-Holes in life ,I feel sorry for their Wife and Kids .I bet they go to church and think everyone thinks they are just the perfect people.

Feb 28, 2011 07:01 AM
#8
Anonymous
Tim Hoover

Hello Colin ,I know how you feel I bought a  2 million house out side of Austin Texas   the Owner had taken out all the Kitchen Cabnets Smashed the Marbel floors with a Hammer Poured Water on the Harwood Floors to Warp them.Kicked Holes in the Walls Ripped the Drapes and Poured Gravel down all the Drain pipes.there was a old car that was pushed into the pool ,and oil poured all over the pool Deck.Glad the homeowners insurance paid for most of the Damage.

Mar 01, 2011 01:37 PM
#9
Anonymous
Chuck l Lander

There are some really sick real estate agents out there.I was looking at a home in a area of $600,000 homes. I meet the agent at the home.this agent had the worst B.O.no one was home so we entered the home,he said he had to use the bathroom and said he would be back in 10 minutes.after about 1 minute the stench from the bathroom started to engulf the house. there was a dog in the home and it puked all over the carpet from the smell. I decided to make a quick exit out of there before I passed out from the gaging  foul stench. as I ran to my car the owner a elderly women and her husband pulled up in their lexus. as I left I said to them  the real estate agent said you have a sulfer leak under your house. I am would have loved to see the look on their face when they opened the front door and got the full blast of the crap bomb that real estate slob left.I am sure they busted him ,because he was still in there when I left the home .

Sep 09, 2011 06:28 PM
#10
Anonymous
Frank g moreland

I would like to relate this story about client I had I had the listing on a Million Plus home, the owner said they were going to be out of town for 3 weeks,she did not want the home to be shown until she retuned,her friend was staying at the home and wanted no showings. after 3 weeks went buy I called  the home and her friend said I could now show the home ,she said the owners would be back in 5 days and you can show it now. I had a showing with a small group 2 days later.when I open the door to enter the home the smell of shit overcame us,there were 8 large dogs that had Crapped all over the house,the stench made some of my clients to  puke all over the floor.then 3 of the dogs jumped up on my clients and had dog shit on there paws, it got on their clothes and hands when they pushed the dogs off of them. we got out of there ASAP. my clients were disgusted and angry I later that week called the owner a told her about what happen,she was very sorry and had told me that she had paid her friend to watch he home and feed her dogs in the back yard.she said her friend had gone on her own vacation and locked the dogs in the home with 3 weeks of food.I told her no one would buy a home that smelled like dog shit,and she will never get that sickening smell ever out out of that  home. I said for her to find another Real Estate Agent

 

 

Sep 15, 2011 07:44 AM
#11
Mary Hillerman
Crye-Leike Realtors® - Bentonville, AR

Good morning Gordon,  I hope things are going well with you.  I see it has been awhile since your last post.  I hope you find the time to come back and dance in the Rain.

Oct 21, 2011 02:21 AM
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Good morning Gordon, I stopped by to thank you for commenting on my blog and to see what was going on in your area.  Have a great day!.

Mar 04, 2014 09:52 PM