Real Estate Agents - Is the real estate bubble bursting, or just losing steam?

Author

Is the real estate bubble bursting, or just losing steam?

Mr P

2006-01-04, 3:21 pm

USA Today story on 12-30-05 says the number of previously owned homes on
the market rose in November to the highest level in 19 years, while
sales fell for the second consecutive month, raising concerns that the
housing bubble might be about to burst. More than 2.9 million homes
were on the market in the USA in November, according to the National
Assn of Realtors. That's up 14.4% from November 2004, and the highest
level since April 1986.

Is the market in for a crash landing OR will it bottom out slowly?
What's your opinion? Mr P

homan4

2006-01-04, 5:21 pm

Here in central Florida, the market has gone from red hot to hot. Over the
last two to three years existing home prices have almost doubled, over the
last year and a half vacant land prices have almost tripled. At the same
time rents stayed relatively flat. In our area I believe the market has not
slowed, but, has rather matured rapidly. As far as the slowing, I think
this is healthy, for the market to stop and take a breath. If the market
just kept up at the rapid mid double digit growth rate, maybe a bubble would
be bursting, but here the market is just taking time to regroup and for
prices to adjust to each other.

"Mr P" <MrPeppa@webtv.net> wrote in message
news:25242-43BC196A-814@storefull-3317.bay.webtv.net...
> USA Today story on 12-30-05 says the number of previously owned homes on
> the market rose in November to the highest level in 19 years, while
> sales fell for the second consecutive month, raising concerns that the
> housing bubble might be about to burst. More than 2.9 million homes
> were on the market in the USA in November, according to the National
> Assn of Realtors. That's up 14.4% from November 2004, and the highest
> level since April 1986.
>
> Is the market in for a crash landing OR will it bottom out slowly?
> What's your opinion? Mr P
>

2006-01-05, 1:21 am

"Mr P" <MrPeppa@webtv.net> wrote in message
news:25242-43BC196A-814@storefull-3317.bay.webtv.net...
> USA Today story on 12-30-05 says the number of previously owned homes on
> the market rose in November to the highest level in 19 years, while
> sales fell for the second consecutive month, raising concerns that the
> housing bubble might be about to burst. More than 2.9 million homes
> were on the market in the USA in November, according to the National
> Assn of Realtors. That's up 14.4% from November 2004, and the highest
> level since April 1986.
>
> Is the market in for a crash landing OR will it bottom out slowly?
> What's your opinion? Mr P
>

I think it depends on who you talk to and where that person is located.
Areas of the country that enjoyed 20-50% (plus) increases in one year can't
possibly expect to see that for long. That sort of growth cannot be
sustained. Thankfully the Fed wont be raising rates drastically in '06 (or
so they say) so that wont entirely squash the housing market.. but I think
the majority of us will start to see a leveling off. I'm in the midwest.
For me, the listings haven't been a problem obtaining, and it's still early
(after the holidays) to judge the buyers, but my guess is that the number of
buyers in my area will be down this year. Just a side note.... I think part
of the reason that homes are sitting on the market is because there WAS such
a boom last year that many of the sellers have become overly-greedy
expecting to get multiple buyers on their over-priced homes. This year it
will be increasingly important for sellers to be realistic about the value
of their home and their expectations in selling.

miamicuse

2006-01-06, 1:21 am

"V" <r3publicansrul3@yahoo.com> wrote in message
news:PA1vf.17382$0e.3594@tornado.rdc-kc.rr.com...
>
> "Mr P" <MrPeppa@webtv.net> wrote in message
> news:25242-43BC196A-814@storefull-3317.bay.webtv.net...
>
> I think it depends on who you talk to and where that person is located.
> Areas of the country that enjoyed 20-50% (plus) increases in one year
can't
> possibly expect to see that for long. That sort of growth cannot be
> sustained. Thankfully the Fed wont be raising rates drastically in '06
(or
> so they say) so that wont entirely squash the housing market.. but I think
> the majority of us will start to see a leveling off. I'm in the midwest.
> For me, the listings haven't been a problem obtaining, and it's still
early
> (after the holidays) to judge the buyers, but my guess is that the number
of
> buyers in my area will be down this year. Just a side note.... I think
part
> of the reason that homes are sitting on the market is because there WAS
such
> a boom last year that many of the sellers have become overly-greedy
> expecting to get multiple buyers on their over-priced homes. This year it
> will be increasingly important for sellers to be realistic about the value
> of their home and their expectations in selling.
>
>
>

In south Florida the increase is substantial. It is not unusual to see
homes tripled in two years without any addition or upgrade. Most homes are
selling at or above asking price as-is. Many people from South America and
the north come down and willing to pay cash on properties even on prices
that does not appraise.

MC

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