My point about the number of realtors is that if this is such a hot market why aren't they buying? Realtors don't have to actually be selling or practicing, I am referring to them as a group of individuals (and it is a large group) that are educated about the marketplace, financing and all that goes with it. If they aren't buying how can you expect the rest of the population to stop dragging their feet in this hot market. Lead by example - or do you think they are all renting?
~~~~~~~~~~~~~~
Many of us already own a home. Many of us own multiple homes. Many realtors DON'T buy multiple homes. Are you saying we should all be running out and scarfing up homes? How much money do you think we make, LOL?

Mon Apr 7 2008, 16:05

Hey Yev,

Quick note: I just called the listing agent regarding the property at 12824 Kling St. because I wanted to go preview it, and I was informed that after 3 days on the market they have an accepted offer. The agent of course wouldn't tell me the purchase price, but my guess is that it's over asking ($599,900). We'll keep an eye on it and see if it closes.

Hi S,

Yes, the numbers are staggering. I used to think one could throw a rock in this town and hit an actor, but it seems to me that same rock would ricochet off the actor and hit 2 or 3 Realtors! Those numbers however are somewhat skewed because not all licensed Realtors sell real estate. There are a number of Realtors who keep their license active so that when the next "selling frenzy" appears, they are ready, willing, and able to sell. Maybe these statistics show the competition within our industry and why "dirty-dealing" Realtors exist in our marketplace, and why first and foremost, when choosing a Realtor to work with, TRUST between you and chosen Realtor should be criteria 1, 2, and 3!

Thanks!!
~ jordan elias

Mon Apr 7 2008, 15:11

Not sure about the rest of the country but here is the info on real estate agents in CA - just think if every one of them bought a property this year - sales would soar!

from 2007
"An interesting phenomemon is occuring in California. With sales slowing and the market soft, you would expect the numbers to start to shrink. From roughly 495,000 licensees (brokers and agents), or 1 in 52 adults in the state, the number is now exclipsing 532,000. (At the end of January 2008, the state had 548,879 agents )
Meaning that 1 out of every 50 adults in California is a licensed real estate agent. "

Mon Apr 7 2008, 14:28

I can't believe no one has brought this up yet - if it is such a hot market why aren't all of the realtors on this thread out there buying something? Either a first time purchase or moving up. Are all happy with where you are at? According to most of the realtors this is the time to buy - so put your money where your mouth is. Let's hear your stories. When is the last time you bought? Of course, I realize it could be tough now - some lenders, WAMU is one, will now not loan to anyone in the real estate industry.

Mon Apr 7 2008, 14:07

Listen to George Soros, somewhere in the middle of the video, and form your own conclusions.

http://www.ft.com/cms/893ac9c8-757e-11dc-b7cb-0000779fd2ac.h…

Mon Apr 7 2008, 13:41

I don't think there will be too many immigrants that will be buying houses.
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Why not? They aren't all illegal Mexicans. There are plenty of people coming to areas such as NY who are buying. In fact, on Long Island, the Hispanic population makes up a lot of first time homebuyers.

Mon Apr 7 2008, 13:13

Renato, it is frustrating, but you got to weather it out. Prices will drop, they are dropping in fact, but they have lots of room to go.

The math doesn't seem to matter to people, not a lot of agents talk about that (the higher the sale price, the higher the commission, yeah its a low blow, but its a fact), however, with tight lending, lack of buyers, and huge inventory, prices will keep dropping. End of this buying season should be eye opening to people.

Mon Apr 7 2008, 12:44

Prices in California have not gone down ...... unless someone has to move out of State, they will not lower their price. Houses have been on the market for over a year and still no reduction in price. Just because prices drop 20% , everyone is freaking out that it's the end of the world. Please remember that a house that sold for 600,000 in 2001 is now listed at 1,300,000 so even if the seller reduces it to 1,000,000 it is still almost twice as much as in 2001. It has gotten to a point that if you bought before 2000, you will have a house .if not, you can pretty much forget about it. Has anyone done the math of what your yearly income has to be in order to afford a million dollar home ?

Mon Apr 7 2008, 12:32

Population is going up.... Home buying population is not. Draw your own conclusions.

J R said:
"The baby boom years are gone.
~~~~~~~~~~~~~~~
And the population is dropping like a stone? Immigrants aren't entering the country?"

Mon Apr 7 2008, 12:21

The baby boom years are gone.
~~~~~~~~~~~~~~~
And the population is dropping like a stone? Immigrants aren't entering the country?

Mon Apr 7 2008, 11:17

If your house is your home and you are happy why would you want to move?
~~~~~~~~~~~~~~
I could give you about 5 answers to that question, as I have heard at least that many: we want to live closer to our parents, closer to work, house is too big, too small, want a yard....but they all claim to love it they're thrilled, they're happy and they don't need to move.

Mon Apr 7 2008, 11:16

I'm sure those that collect the 4K sneakers already own a house, perhaps several. They're not going to sell and buy just to keep the real estate agents in business. If your house is your home and you are happy why would you want to move? It is not so much that buyers are dragging their feet, there are just less of them out there. The baby boom years are gone.

Mon Apr 7 2008, 09:10

`CBS Sunday Morning had a segment on the rappers, collectors, and mortgage brokers who collect $4,000 limited edition Nike sneakers.
We need some of these guys who pay $4K for a pair of tennis shoes to become house buyers.

Mon Apr 7 2008, 08:50

I was on caravan in my area last week, saw a waterfront home at 1.4M. I said anyone who paid more than 300,000 for it would be an idiot. A little hyperbole on my part there, it will probably sell for close to a mil.

Mon Apr 7 2008, 05:15

Jordan, the Kling house is a complete and utter disgrace, its a fixer upper, so at 599, you could put a 100K into it and possibly fix it up really nice, then try to flip it at the comp price. In that area, SFR's go for 700-1 mil range. That's still a dillusional price to me, I wouldn't give 350 for that shack.

Sun Apr 6 2008, 21:32

Cat, I bid exactly 87% of their asking price. This wasn't some attempt to lowball them though. The house was sold in 2004, 2007, and is for sale again. Since the 2007 sale, the median home value in that particular area had declined by 11.7% (which I think is actually a conservative number), so I did my own calculation and bid 11.7% lower than the 2007 price.
I ignored what they currently appraised it for. The house has been vacant for over 8 months and will continue to sit. = The area is Long Beach, CA if anyone was wondering.

Sun Apr 6 2008, 20:28

Hey Yev,

Haven't been through this Kling house yet and I don't know what shape it's in, but it does (more or less) back up to the 101 on ramp. As well, it's half a block off Coldwater Canyon. At just under $600k, I think it's a pretty good price, but my guess is it's not too far off its true value.

Hi Lucas,

Congrats on placing your first offer. I would agree with you that there are still a number of Sellers who are not willing to realize the evident decline in their houses' value. Hang in there, and that original "delusional seller" may become a realistic Seller in just a few weeks. Best of luck in the process Lucas!

Thank you for the article Jan!

Take care all,
~ jordan elias

Sun Apr 6 2008, 16:45

How much did you big under their asking? What do you think is a real price compared to what they started at in 1997?

Sun Apr 6 2008, 16:22

Jordan, sales MAY actually be picking up when compared to the last couple months, but home prices are st