mallarde

Pending Home Sales Up: Does That Mean Anything?

The bifurcation between the low end and the high end holds true in SoCal. High end properties continue to sit on the market because asking prices have not come down enough. (I would estimate 5% to 10% in my area.)

One condo came on the market down the street listed for $50K more than the same property in late-2006. They are still reaching for the stars, and I suppose there are still real estate agents willing to try to sell this B.S. to potential buyers.

I will be a renter for much longer.

Where Is That Mythical Housing Bottom?

xmplary, the housing industry may have been a large business. But it also represented a huge misallocation of capital. This occurred due to a market bubble. We should not try to keep pumping air into the bubble merely to perpetuate this misallocation of resources.

Building homes people do not want or need is economic waste.

Credit Suisse: Housing Bottom More Than a Year Away

How can no one mention our population explosion? Remember that whole supply-demand concept?

And what about dual income families? The newest generation of homebuyers is the first in which most women work and are often professionals earning comparable salaries. Once you have enough such dual income couples, the market has to adjust.

I hope Credit Suisse is correct, because I am renting and am waiting and watching.

Talk of a Real Estate Bottom Already Is a Waste of Breath

There are some factors that many neglect. First: immigration and population. Particularly in CA and FL, there is more demand for housing in good areas of cities. Second: double-income families. Families have engaged in an arms race and have been using women -- who used to stay out of the labor force -- for second incomes. Once enough families are double-income, the market adjusts up due to demand and more money that can flow to real estate.

This is not to say there is not more room for the market to fall. There is lots of room. I still hope all the air seeps out of this market over the next few years.

Sellers' 'Hopeful Overvaluation' Dragging Out Housing Bust

I wonder if an overabundance of real estate agents with nothing to do increases this phenomenon.

For example, I visited a place in Santa Monica that was listed at $720K but was worth about $600K. If you are a seller and an agent tells you she will try to sell if for $720K or thereabouts, why not let her try? Maybe you think that if she can sell it over-market it will more than offset the taxes, HOA fees you pay by sitting on the property a little longer.

If you are an agent, you might have harder choices to make. You might have to do more work to get listings -- such as wasting time trying to sell a property over-market. At least you get to try to poach buyer clients while you sit at open houses.