LeeCarlson

S&P/Case-Shiller Shows Housing Continues To Worsen

In my view, the real estate market ,... after the stock market crash,....became the new hot place to put your money. And most investors have a really dumb mind set,...they don't check out the investments they are making.
Being a Realtor for 26 years, I personally would not buy a house or condo at this time because it has a MINUS return on investment !!
I have had the recent experience of selling a condo at what I thought was a high price considering it's condition, only to find out the day after the closing, it was back in the MLS, by another broker at a MUCH HIGHER price. Fortunately, after being on the market for several months, the seller reduced the price considerably and sold it to another investor, (AT A LOSS !) and the new investor, spent a ton of money rehabbing the place, only to find that it was not salable at the new higher price. ! Brilliant thinking by these investors !!!
Way too many investors have a "herd" mentality !... "If 'Mr. Jones' did it and made money, then I'll do the same thing !",... No real market analysis, no looking at what else is on the market, no looking at recent sales, etc. so in fact it bacame the blind leading the blind.
Unfortunately, all this buying and reselling pulled up the market prices so fast that NON-Investors, had to pay prices for homes that were really overpriced in the first place. !!!
Sad to say it but Realtors participated in this insanity because it was another commission ! If they gave good advice to an investor, and the investor didn't like it, there are hundreds more Realtors out there who would let the investor go thru with a very high purchase price. So, who is to blame ,...It's just really investors who didn't get educated about the market !!! When you are playing with big bucks, you must become aware of the risks !!
LC, Clearwater

Eleven Good Points On Residential Real Estate

Hi SJDiii,..I totally agree with your assessment of the market. I too sell in Fl, primarily in the Clearwater area, and it is a lot worse in Fl than in most states. We were invaded by "investors" who made really bad decisions and are now trying to just get their money back, and in addition, everyone and his brother suddenly became a mortgage broker, and lenders went along, until the investors found thet they couldn't find a tenant and couldn't sell, The newspapers are full of Auctions and Forclosure sales and the end of the downturn isn't in sight ! Even with prices fropping, there are no sales ! ...You are right about NAR, a real waste of money we have to pay those guys to give out bad advice and to continually hear them say things aren't so bad.!!! They need to learn how to just "tell the truth !