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Virtual Roundtable on the State of the Real Estate Market
By robertearl | April 29, 2008
USA TODAY QUESTION TO THE VIRTUAL REAL ESTATE ROUNDTABLE: If you could use just one or two words to describe the housing situation right now, what would you say?
Brandt: Working itself out.
Youngblood: Correction.
Naroff: Sales are stabilizing, prices still falling.
Murphy: Work in progress.
Yun: 2008 is a year of clean-up. Afterwards, better conditions.
Murphy: Better days ahead.
Zandi: Not over yet.
Bruno: Unstable.
These responses came from an article in USA Today.
The spring home-buying season is kicking off in the midst of the most painful real estate recession in decades, with prices tumbling and many Americans losing their homes to foreclosure because they can’t pay their mortgages. As buyers and sellers begin what’s typically an energetic time for real estate activity, USA TODAY convened a virtual roundtable of housing experts and everyday Americans for an online conversation.
Check out the article and if you have any questions you can always Ask The Earl.
Some of the selected questions and answers:
Q: Recently, the National Association of Realtors reported the first signs that sales might, at last, be perking up in some areas. Yet, home prices are still falling, and federal officials are taking steps to try to ease the crisis. What should buyers and sellers expect as the spring selling season gets underway?
A: Consumers need to find out what is going on at the local level and not necessarily take national headline numbers as a point of reference. Sellers tend to be more stubborn in facing the reality of the market, so people who really need to sell need to come down on prices, given the high inventory and seller competition.
Q: What needs to happen to stimulate the housing market?
A: Consumers need to have the confidence that their local market is not going to continue to fall — and the credit markets must become more fluid. We see many buyers who are ready to buy and should qualify but can’t get a loan. A government bailout of housing is not the answer.
Q: Consumers need to have the confidence that their local market is not going to continue to fall — and the credit markets must become more fluid. We see many buyers who are ready to buy and should qualify but can’t get a loan. A government bailout of housing is not the answer.
A: Home prices had just tracked inflation from 1895 to 1995. They outpaced inflation by more than 70% since 1995. That is my basis for saying that we need price reductions of 30% to 40% from 2006 levels.
Q: Assuming they do proper research, should people — especially first-time buyers seeking an affordable home — consider buying a property in foreclosure?
A: In some areas, most of the properties for sale will be foreclosures. I absolutely think people should consider this, after doing careful homework. Buying a home in foreclosure is no easy task for the novice, and they should not attempt it without professional help — an investor, agent, etc., who can guide them. It’s difficult, especially at public auction, which is the most risky stage to purchase.
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Topics: Buy a Home, Buying Foreclosures, Northern Virginia Real Estate, Robert Earl, Sell your Home |