I have been writing articles about the Long Island real estate market for some time now and I came across the perfect information that illustrates what homeowners might expect during the next few years. I thought about the title to this article and decided to just lay it all out there.
What you're about to read is not just my opinion. I'm not as self-absorbed or diluted as our typical politicians who seem to know it all when things are good and point the finger when they're not. No, I don't, and will not, publish articles about what I think or feel. Rather, I publish articles about information.
You may click the image(s) to enlarge it. The information is forwarded-looking in nature and deals with what's down the road for real estate values. I find myself talking with many homeowners who ask me "my opinion" about what's in store for the Long Island real estate market. As I explain to them the ramifications for "holding on" and not selling now, or asking a 2005 price for their home in 2008, I get alot of, "Well, you don't know what's going to happen in the future..." or "I think it's going to come back next spring..."
Well Freddie Mac doesn't think so according to Bloomberg News who quoted officials citing the S&P Case/Schiller Home Price Index. (I'm scratching my head)...So I guess the average homeowner who is a teacher or a plumber or a doctor knows more about the real estate market than Freddie Mac or Bloomberg News or Case and Schiller. See the next slide.
I took this quote directly from the previous slide: Radar Logic publishes price-per-square-foot data used as the basis for the Residential Property Index, or RPX market, used by most hedge funds and institutional investors to hedge their mortgage-related bets. The 2011 estimate is not the company's own, but is based on a forward curve produced from futures trading in the RPX market.
The owners who don't listen will end up chasing the market price down.... I think I'll take advice from professionals.
Susan,
Amen to that! I have seen numerous homeowners watch their equity go right out the window because of their own greed. It's hard to take the big step toward recognizing you've lost 1000's of dollars, but at the same time, you've got to wonder - was that money ever real to begin with?
Helping an owner see that is tough - but tougher for them to swallow (especially when they've refinanced themselves into oblivion and those are some of the worst situations).
Great post. When sellers tell me "it will be better in the spring" I usually say - "You're right...but the spring you are hoping for is the spring of 2011"
People who don't have to sell, shouldn't. The market isn't accomodating to sellers, and buyers are limited. Our supply is not properly represented if there are an abundance of reluctant sellers with properties not providing sensible pricing- this market just isn't wish friendly. It certainly isn't fun sharing current market news with sellers, but they need reality until the uptick starts.