I've grow tired of the real estate rhetoric...
My Dad used to tell me to believe "none of what you hear" and "only half of what you see". The optimistic rah-rah I keep hearing and reading from agents who want sellers to believe the big pay day is right around the corner just isn't meshing with reality.
Here is a statistic: The number of buyers willing to pay a ridiculous price for a home is down 100% in my household.
If I were a betting man (and I am betting with my hard earned dollars), I truly believe a much deeper correction is about to begin. Smart buyers aren't going to pay premium prices when half the county is for sale.
Just get in the car and drive around SoWal. How many developers are competing for buyers right now? Oh, that's right... they all have deep pockets and can wait out a correction. Pfffft. They didn't acquire those big parcels of land with extra cash they had just lying around. Funny, but borrowed money has a price. And builders get a little nervous when there is no work for them. Things are about to get very competitive. And a little patience might go a long way if you are a buyer.
If you pull up the MLS listings you'll see how many dumpy 3 bedroom homes are listed in the $499,000 and up range. Heck, they might as well ask for a million. They aren't going to get it despite whatever the listing agent convinced them it was worth. I want to yell that at the knucklehead that has the little row houses listed on 393 for $299,000. He can have open houses until hell freezes over, but those houses will never be worth what he is asking.
I've been looking and will continue to wait until prices are more realistic. I know five realtors in the area and none of them are selling squat. I hate it for those trying to support a family, but until sellers decide to start ignoring fools and start selling at a reasonable profit margin, they are going to get the same results as Mr.Optimistic on 393.
Many of the lot prices are a joke too. One day I will buy or build in Pt. Washington. I love the area. But some of the sellers need to get real. One nice lot in Pt. Washington purchased just over a year ago for $139,900 was listed for $386K. The owner dropped the price 4 times, down to $375K and I guess gave up and took it off the market. I drove right down the street to an almost identical development and lots were listed for $350K to $400K. It's almost comical.
Let's see, maybe I'll be one of the lucky ones and really get a great lot buy for $275,000... then I can pay $195 a sq. ft. to build a 2000 sq.ft home. Hmmm... $665,000 plus another $350/mo for homeowner's coverage and maybe $250+/mo for property taxes. Sorry, but that's where a fool and his money are soon parted.
I've thought long and hard about how this happened. The only thing I want to ask realtors is who do you think caused the market to go crazy? Did the beauty of this area suddenly cause everybody to get financially stupid? Or was it the new proposed airport? Or the article in the latest trendy magazine? Do they really think people are that stupid?
No. The realtors poured gasoline on this fire and have had a direct impact in artificially inflating prices to the point where they will now suffer the consequences. I hope the greedy ones starve for a while. They created this Frankenstein's monster and it's going to get ugly for architects, builders, bankers, mortgage lenders, and suppliers.