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November 06, 2007


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does this email anecdotally represent a r.e. meltdown or a crafty r.e. agent trying to motivate a seller? i think it's the later. r.e. is local but i can say in my area despite the fact that house sales have dropped from a high to a brisk pace the price of homes are still appreciating. can anyone say why? because despite the drop in sales it was not that drastic in a lot of places, instead of 2006 sales paces we have 2002 sales paces which were very go years for r.e. maybe things are desperate like that email says but i truly doubt it, after all r.e. agents are merely sales people.

Clay --

Prices are certainly NOT appreciating here. Michigan is one of the top several states in foreclosures and prices are dropping quickly.

From my own personal experience: I've been watching one house that started with a price of $459k and is now down to a list price of $399k. Let's say it sells for $359k (which is probably the best they can hope to get out of it at this point.) That means the price dropped $100k from the original list price!

That said, I agree, RE agents are sales people, but 1) I really don't think our agent is that crafty (believe me when I say this) and 2) if she can get ma a house I would even consider for $599k and sell it to me for $321k, I'm all ears!

Michigan is definitely in the outlier category. There's a lot of things going against Michigan right now. It's sad. (I grew up there.) But if the economy there doesn't diversify, it will only continue.

Real estate agents are salespeople, but they also have a responsibility to get their buyers a good deal. How pissed would you be if you found out a house that was priced at $599k eventually sold for $321k and that is in your price range? If it is really a good deal (and wasn't just overpriced at the start) I sure wouldn't be mad at my agent for trying.

It is certainly a sign of the times when investment firms are buying more homes than actual buyers.

What a great time for me to be in the market for my first house!

Don't drink the kool-aid. This is not a good time to buy. When the used house sales people call it a "buyer's market," it is actually a seller's market, and when they call it a "seller's market," it is really a buyer's market.

Think of 2003. They were calling it a seller's market. But the smart people were the buyers, cause they resold them and made a killing for almost no work. No they call it a buyer's market. The smart people are the seller's, because they are getting out from under a rapidly depreciating asset and passing that depreciation on to the buyer.

It's a renter's market.

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