- Sep 12, 2005
May I be so bold as to interrupt this enlightening t?te-?-t?te and interject the following.
The RE Frenzy over the past couple of years was a market anomaly--a perfect storm of cheap money; easy credit; an asset class understood by anyone who has played monopoly as a kid; an abundance of people who feared the stock market; and greed. Now it is over and we are experiencing a reversion to the mean--a RE frenzy of that type will not return for decades, if ever in our lifetimes.
Like an old, trusted friend who has passed, those who've enjoyed and profited from the ride will grieve its passing...as such, all will have to pass through the K?bler-Ross 5 Stages of Grief (Denial, Anger, Bargaining, Depression and Acceptance) at the end of which we will finally hit the bottom (we're not there yet).
Below is an short video illustration of the 5 stages of grief--(the Quicksand being the current Real Estate Market), take a moment to reflect on what stage each of our RE message board members is experiencing as you watch this clip.
RE Market: Bubble or Quicksand?
Does ?acceptance? mean pricing your property low and if you are not motivated to sell don?t list it?
In our little neighborhood several properties have already sold this year.
The only ones that have sold have been competitively priced.
Existing houses have sold for (approx. $500k for 1800 sq. ft cottage) about one third less than at the peak and vacant lots for about half (about $200k) the ?bubble price?.
FYI : Our village is on 30A, an easy walking distance to the beach, ten minute bike ride to the Town of Seaside, and a safe 30 feet above sea level.