November 28, 2005

What realtors really mean when they say they expect housing prices to stabilize

Hat-tip to HP reader Jeff for this article today from up-state NY.

My question is, when the realtors and builders are continually having to justify prices, and tell people not to panic, why? Are they sensing prices are too high? And that panic is in the air?

We'll see more and more of these in the coming days - where realtors give their "expert opinion" and say things like "don't panic" and "we're seeing the market come back to reality" when what they're truly saying is "holy crap - we're in major trouble here" and "there are no more suckers left - the market's crashing". Lots more fun quotes in this read, including these gems...

After defying economics and reason for several years, the housing market in New York's northern suburbs is coming back to reality (translation: house prices are going to crash - the only way to get back to the mean)

"The market is in transition," said Kevin Joyce, president of Joyce Realty and a former president of the Rockland County Board of Realtors. "It is regaining some balance, and returning to more normal conditions." (translation: to get to normal, we need to crash)

However, they insist there is no reason for panic and stress the market remains healthy. The consensus is that sales and price increases have slowed, but the market is in no danger of collapse (translation: it's time to panic, the market is post-peak, the last suckers in are getting killed, and there is a 100% danger of collapse)

Unfortunately, due to interest rates, higher gas prices and projected higher home heating costs, buyers are becoming more cautious and wary. We are already seeing many price reductions across the board in all price ranges (translation: the only way to move a house now is to dramatically drop the price, cause there ain't any more buyers)

"If we have a correction or a return to more classic times, it will be a positive move for the market. It will entice buyers back to take another look," Lindsey said. (translation: a home price crash is a good thing - really!)


skytrekker said...

Well there may be no need to panic- at least just not yet- but inventories cannot continue to rise, and sales slip. That is a recipe for panic- and in the spring there could be blood in the streets.

deweirick said...

Stabilize = time to return to their previous job

blogger said...

that's rich.. but their previous job of what? bartending? hooking?

skytrekker said...

most realtors are either retired public workers, bored housewives, cosmetic bimbos, waiters,waitresses and yes even hookers- it takes very little in the way of training to become a realtor.

As far as things stabilizing? What a joke.

000000000000000000000000000000000000 said...

New home sales soar
Report shows unexpected jump in sales to record high in October; biggest gain in 12 years.
November 29, 2005: 10:04 AM EST

NEW YORK ( - New home sales posted an unexpected jump to a record high in October, according to a government report Tuesday that bucked other recent readings suggesting a cooling of the nation's white-hot housing market.

The Census Bureau report showed that new homes sold at an annual pace of 1.42 million in October, up from a revised 1.26 million rate in September. It was the biggest rise since April 1993.

Economists surveyed by had forecast that sales would slow to a 1.20 million annual sales pace in the most recent period.

blogger said...

boy, think those folks who picked up a new home last month are panicing today?

panic buying leads to panic selling

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