Is Housing the Next Bubble?

[Tim The Enchanter]

Dee Dee,

What was that song, Byrds maybe "I used to be so much older then, I'm younger than that now." :lol: :!: Oh, nevermind.

Anyway, it seems most realtors think of appraisers as the "turd in the punchbowl". Great mental picture :!: :lol:

 

[Dee Dee]

Lee,
I can't take credit as being the originator of that expression, think I picked it up in a book I read years ago. Always good for a chuckle and when used in the right context it drives the point home.
Several of my clients have heard me use the 'turd in a punchbowl' analogy to describe that little old house that I'm appraising for them that is surrounded by $500,000 newer homes.

Dee Dee

 

[Restrain]

I'm seeing a stable market at the best, with builders reducing prices in various developments after 9/11, significant buydowns, price breaks, etc which are not disclosed on the sales data. Existing homes in certain areas are flat or declining. High dollar homes ($2M+) that used to sell in a short time are now having extended marketing times with no one looking. And homes that would have sold in 30 days are taking much longer. I haven't called a declining market - yet.

 

[Anonymous]

<<the majority of the realtors weren't in the business back when the economy was horrible in this area (80's and early 90's), and it's a forumula for disaster. >>

My cousin took a hit in that Denver market when he started buying repos and putting people in with good incomes but zip for a downpayment, taking a second for the DP plus a profit margin. Did great for a year or so, but the collapse was so fast he could not get out quick enough and many defaulted on the seconds which, by that time, the property value had fell about 30+% so the second mtg. was worthless. Ended up having to sell his own house to extract himself from the last two or three deals, and go back to CPA'ing.