Saturday, October 07, 2006

Slowing Local Real Estate Market Finally Getting Attention from Mainstream Media

I have been warning anyone that would listen for some time now that local real estate prices are grossly overvalued. I recommended as early as a year ago that anyone thinking about selling their property in the next 3-5 years, sell while values were still high.

An article on the Seattle Times website says that local housing experts have been predicting a slow down since the beginning of the year. That is not real true - most local real estate "experts" have been constantly proclaiming that the Puget Sound area is insulated from a housing slowdown. I said then, and I say now - that is not true. We usually follow national trends - and most of the rest of the nation has been enduring a "slow down" for the past year.

Although everyone seems to be talking about a slowing market - I look for a drastic drop in prices, not just a slowdown. What does this mean to people who are looking to buy or sell real estate?

My recommendation for potential sellers is that if they might want to sell in the next 3-5 years, that they put their homes on the market asap. Don't let the market slow down any more and risk the certain price drops - get your money out while you can.

My recommendation for people considering buying real estate is to sit tight and wait for the prices to drop before you invest your hard earned dollars. Unless you have some great reasons to buy now, you will benefit from the coming lower prices.

6 Comments:

At 12:45 AM, Blogger Jess said...

I've heard recently that nowadays businessmen invest their money in Cyprus villas, for Cyprus is one of the best resort places and, being tired of the hotels, rich people and not only very rich ones take villas to stay at during the holidays!!! Villas now are in fashion and they are very profitable to be bought or built!!! :)

 
At 11:25 AM, Blogger EconExchange said...

Everyone loves to look at the YOY numbers saying king county is still increasing by 8.6%. Why do they ingnore the TRENDS?

YOY by month
May - 16.88%
June - 15.34%
July - 14.71%
Aug - 12.02%
Sept - 8.6%

Anyone see where this is headed?

Since this is an Eastside blog the numbers a VERY troubling for the eastside.

May - 16.56%
June - 24.99%
July - 20.49%
August - 6.74%
Sept - 2.39%

YOY the eastside median is up only 2.39%. But what everyone overlooks is how much the median is ACTUALLY DOWN since it peaked in june.

May - $484,500
June - $514,975
July - $496,405
August - $475,000
Sept - $460,000

It's going to get bad.

 
At 11:55 AM, Blogger Joe Kennedy said...

I agree with you Econ - and have been saying so for some time now.

 
At 2:57 AM, Blogger Elena said...

Thanks to you for writing about real estate market condition in Bellevue. Now market condition is improving for seller's in Bellevue. February 2009 showed signs of increased home sales. There are signs of improvement.

Regards
Noida Real Estate

 
At 9:03 AM, Blogger workhard said...

This is a good blog........

Idaho Real Estate

 
At 9:12 PM, Blogger dawnofanewhorizon said...

I am very much pleased with the contents you have mentioned. I wanted to thank you for this great article. I enjoyed every little bit part of it and I will be waiting for the new updates.
Real Estate Investors Nationalwide

 

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