I'm liking "meltdown" as you all know. But "panic" will be used, as well as "stampede"
Except the NAR of course. We could be down 50% and it'd still be a "healthy adjustment"
February 23, 2006
HP readers - predict the next hot buzzword to describe the meltdown (aka "soft landing"
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11 comments:
"rush for the exits" by the speculators!
"mad dash"
How many will be trampled in the process!
Its called a BOOM and a BUST!
And we are not talking about breasts!
Crater.
But of course in the near term "silent spring."
gravitas
sellers getting "ratf*cked." That's one for our fellow readers down under.
Who's landing are we talking about?
The Realitor Agent is an ignorant SOB that never should have made over $40,000 per year, and all those making $80,000 with a 30 hour work we I truley envy.
The home builder is still raking in the money and will tomorrow.
Most home owners thinking of selling bought at least 3 years ago. What they don't know won't hurt them. you may see the lost $50,000. They see they gain of $80,000.
The renter. Now he will take his hit. This we all know is true.
My favorite one that I see the realtor insiders use is "temporary correction". A close second is "seasonal adjustment", used to describe the drop in median prices in the winter months. Cause you know, those buyers in Vegas and Phoenix don't want to go out and look at houses in that freezing weather! Brrrr!
Dunno Keith... 50% DOES sound like a "Healthy Adjustment".
Of course at 75% I'd be positively glowing!
There will be an evolution as the NAR/construction ind community gradually acknowledges the obvious. It will start off with inocuous terms and gradually morph into an acknowledgement of reality:
"market normalization"
"slow down"
"temporary decline"
"significant decline"
"intense decline"
"significant downturn"
"correction"
"severe correction"
"panic selling"
"implosion"
"collapse"
"devastation"
"historic correction"
"unprecedented market correction"
"unprecedented asset bubble collapse"
Stampede wouldn't do as there wont be many cows getting out in this downturn. Many anxious sellers but no buyers.
So we will most likely have movement in price but not volume snd since we are talking sticks and bricks the word collapse might be the most appropriate.
Some possible bubblespeak:
"The market is now more modulated."
"The market is resetting housing valuation parameters."
"The market is adjusting to more normal valuation metrics."
"The market adjustment is purely a technical condition."
We'll probably see some variations of these in the press. That last statement was used in 1929. When statements like these are accompanied by "the fundamentals are sound", it is time to run for cover.
It never fails. First they deny that there is a problem, then they get around to admitting (very reluctantly) that there is a bit of a problem, but 1) values will never go down, and 2) any problem will be somebody else's problem, it won't affect you personally.
When they finally get around to admitting that there is a problem, and that it is a big problem and that it is inflicting damage and that values are actually going down, much of the damage will already have been inflicted.
The trend I am noticing now is, since the current news is less than rosy, the bubbleheads will 1) avoid talking about the current numbers, and instead talk about the last few quarters of last year, or show charts of home values over decades (see that big rise? why are you worried about one bad quarter?), and 2) release data less often than they used to.
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