Hyperventilating real estate pundit Mike Larson can be over the top, but a piece [1] he wrote late last month contains a bit of real insight.
“A drop in property values is no longer some distant worry you should shrug off. It’s not some theoretical, over-the-horizon, possible threat. It’s happening — right here, right now.
Just as I’ve been saying for months on end: First, sales fall. Then, supplies build. Lastly, prices fall. And sure enough, now this 1-2-3 sequence of events is unfolding right before our eyes.”
I have been noticing this “Lastly, prices fall“ thing too. Dozens of RE analysts have been describing their local markets as having declining sales, exploding inventory, but still rising median prices. This puts me in mind of the legend of the Titanic. Just before the final plunge, you could have said about the stern, “It’s never been higher above the water!” Read the rest of this entry »
