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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (396)	2/22/2004 10:29:51 AM
From: mishedlo	Respond to of 116555

You think that RE deflation will take just two years? I'd think 5-10 years. Exactly, with the FED fighting every step of the way. M

To: ild who wrote (396)	2/22/2004 12:04:22 PM
From: TH	Respond to of 116555

ild, I have no idea how long it will take. My thinking was just to sell the top. Michigan probably does not reflect the national real estate market, but higher end homes (350K and up in this area) are very soft right now. The top in those may have passed. My more modest home is still in a sweet spot for my area, and could sell within a few percent of the historical highs for this type of home in my area. I see this trend also reversing, as I see more of these modest homes on the market longer, even if the selling price is still near the high end. It will only get softer and if we were to get a rate increase, I would expect some pretty sharp price declines. My buddies McMansion has been on the market for 8 months with zero offers. I think its priced right, the buyers are just not biting. In 2001, maybe in 2002, his house would have sold at the current asking price in less than 60 days. Another friend is a well known agent in my area. He has a huge inventory of homes above $275. They just sit in this buyers market. Thx TH