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Market Reaction

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Seems Florida and a few other states/areas are going into a real estate boom, so to speak, with prices increasing. The prices in my state are still dropping. We're a little slow here.

 

Just curious the market reaction in those areas? Are sellers jumping to get their houses on the market? Are buyers in a panic to find a house to buy? Or, is it more media hype and somewhere in between?

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Steve, I'm not seeing any great boom, despite what the headlines may say. Prices have increased, but that's from record lows. They had nowhere to go but up. Sales are up, too, but again from years of dismal numbers. Junkers are selling to cash buyers, meaning the retail buyers are pushing the market. Higher priced homes are selling for cash also, much of it coming from overseas. So, my take is that speculators and investors want to be in the forefront of what they believe to be an opportunity to take advantage of the greater fool theory. Much like what happened back in '06-'08. For me to believe real estate has stabilized, there needs to be retail buyers present, applying for traditional mortgages and taking possession as owner-occupants. Until then, I'm calling Bubble, part deux.

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Interesting the crazy affect it is having in FL. We (my area) are always at least a year behind market trends, and about missed the '06-'08 boom. lol

 

For me to believe real estate has stabilized, there needs to be retail buyers present, applying for traditional mortgages and taking possession as owner-occupants.

 

I agree. Maybe I am old fashioned but it takes a growing economy for a true real estate recovery; and things are stagnate at best, albeit "they" call it an economic recovery.

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Steve, "they", (the media), are long past reporting news and now write editorial and opinion pieces instead. These days they are still trying to push the idea that the stimulus was a brilliant move on Obama's part, the effects of which we are now seeing in the real estate market. It's ironic, really. The very people and institutions this administration has demonized, Wall Street and the banks, for example, are the ones getting fat again as hedge funds and Wall Street barons are buying up blocks of real estate.

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Obama is in the pockets of Wall Street and the banks, but he's cool and hip and his sheep just follow.

 

To bad, as the average Joe was always able to build some wealth through equity in his home.

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Thanks for the comments. I was curious about the attitudes of sellers and buyers. I have been hearing some sellers in my area tell me that the retail market has rebound because thier agent told them so. Really! Now months later I am getting a few returned phone calls for a Lease Purchase and watching the others sit on the market.

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Realtors always tell homeowners it's the best time to be selling, and always tell buyers it's the best time to be buying. Quite a racket.

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Not sure what's going on here (NW FL), but some friends of mine just got a full-price offer contract after being on the MLS for 6 days.

 

Lynn (FL)

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Lynn, I'm convinced it's the greater fool theory on display. The folks read the headlines, listen to a Realtor, and they believe they hype that we are in a full fledged runaway sellers market. Which is precisely what happened back in '04-'05-'06. The belief was real estate goes only in one direction and if you don't buy now you're going to miss the boat. . .and we all saw how that turned out.

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The market here is same-old same-old. We didn't have the huge boom that you guys had in the mid-2000s, so we didn't have a bubble to burst, although prices did slide a little. Now it's continuing up. Average price for a single-family as of May is $333,288 up 6.9% from last year. Average household income is about $90,000.

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Hey Doug, long time. :)

 

It's a tough market as inventory is low. Plenty of tenant/buyers if the numbers are right.

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My market here, or at least the perception of it, is off the charts ridiculous. Not a Sunday passes in the real estate section without a screaming headline that we are once again in a white hot sellers market, and if you don't buy now you'll miss out on the greatest opportunity since PT Barnum had a sale on snake oil. :rolleyes: So we are now seeing brain dead buyers making above-asking-price offers on houses that are worth 15% less than the purchase price. Didn't someone once say that history repeats itself? Bubble, v2.0

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