I just read an article that FORTUNE wrote on the current real estate market. It says that there are a lot of areas in the nation that still need to correct. They are suggesting 30% up to 50% correction. I wanted to post the very first part of the article and then attach a link if you would like to read the full story. *Warning* The article is long but very interesting.
The San Francisco/ Peninsula market is correcting itself but we have never seen more than a 25% reduction in prices for the past 43 years. I am starting to think that the media is controlling this a little more than they really should. There is always going to be a buy and always going to be a seller. The question is are YOU going to be the one that help them in the transaction?
First part of article below..... would love to hear comments after you have read the article!
George
You can't blame America's homeowners for feeling hopelessly confused. From suburban porches and city terraces, they're gawking at a housing world gone mad. Just 18 months ago, folks on a tony Linden Lane or a leafy Boxwood Court were astounded to see the colonial their neighbors bought for $600,000 in 2000 sell for $1.5 million after multiple bids. Now they're just as bewildered to watch the same model across the street go begging for months at $1.1 million without a single offer.
The millions of Americans who believed yesterday's happy talk about housing are now paying the price, from couples who stretched to buy second homes, to true believers who drove the Florida condo craze, to executives who can't take that great new job in Charlotte without suffering a huge loss on the house purchased at the bubble's peak in Sacramento.
Now that the gilded forecasts have proved spectacularly wrong, homeowners don't know what to think about real estate's future. The dizzying rise sure didn't make sense. And the sudden slump doesn't seem any more logical. How can you make reasonable financial plans for the future if you have no idea what your house is worth?
Take a deep breath. We can't tell you what your house would fetch tomorrow. But we can help you through the fog of whipsawing prices and vacillating views to develop a clear picture of what your house will most likely be worth in five years or so. Over long periods housing, like stocks and bonds, follows a set of economic fundamentals. No matter how far prices get unhinged in a speculative craze - and we've just witnessed a blowout - those basic forces eventually regain their grip.
Click Here to Read Full Story!
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| These homes in Hesperia, east of Los Angeles, sell for $450,000, down $70,000 from 2006. |
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| Clifton and Sheri Gorham are saving $800 a month renting a townhouse in Manassas, in northern Virginia, instead of owning one. They want to buy, but only after prices drop another 5%. |
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| Matt Goldberg and Rain Kramer sold their Manhattan co-op for a big gain. Now they're renting this loft, waiting for prices to fall before buying again. |
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| John Safa, who owns a car dealership, had his Lincolnwood, Ill., home on the market six months without an offer. He'll rent it out until the market rebounds. |
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| A big drop in construction costs allows developer Paul Roman to offer this model for $379,000, down 10% from the peak. |
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George is a San Francisco native living in Noe Valley. Since starting his Real Estate career in 2004, George approaches each transaction with a vast knowledge of the current market and economic condit
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