Lately I've had discussions with a number of individuals (and arguments with real estate agents) about the current housing market and whether it is a repeat of various points in history. I believe we're going through a similar correction to the Housing Crash of the 1990's. But certain aspects of the market are completely different, and for a two key reasons:
Buyers are smarter
Buyers now have the same information as real estate agents do. The resourceful buyer may also have a deeper understanding of the market than the average agent. With tools like Realtor.com, Zillow.com, eppraisal.com, and others, buyers have the tools to make more educated choices. Most buyers are also aware that the home prices are continuing to slide in downward trend, thus buying a home at the current "market" price may not be a wise move.
The mortgage/credit crisis
The other major factor that differentiates this market from other times in history are the unfathomable number of foreclosures created by the mortgage/credit crisis. I think some of you (real estate agents especially) are down playing the effects of the mortgage/credit crisis. In truth, as long as banks continue to dump record numbers of bank-owned properties (due to foreclosures) into the market, and distressed sellers attempt to short sell, the prices will continue to slide downward.
Conclusion
Folks, it's up to you to make up your own mind about whether you feel this market is reminiscent of the 1980's, 1990's, or something altogether different. The fact that you're thinking about it at all is a very good sign.
Conclusion
Folks, it's up to you to make up your own mind about whether you feel this market is reminiscent of the 1980's, 1990's, or something altogether different. The fact that you're thinking about it at all is a very good sign.
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