Decline in Real Estate

[Beachboy]

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Well, you guys are right, I can't win against the bystander conspiracy theory. Isn't it great that now I am even labeled not honest by someone I never even met?! Well, bystander, I can tell you something, "CRB" is management designation and the class I was referring to was for managers and not sales people. The class was conducted by Mr. Brewbaker who is the Chief Economist of Bank of Hawaii. Yeah, he is part of the conspiracy too, huh?

"So tell me this: if property values keep going down will you and your RE cohorts be making more or less money?" I have seen both soft and heated markets more than once since I am in the business. Neither one had a major effect on my income. In fact, even though we are told by bystander experts that the real estate market is tanking, my company already had more gross income in 10 months this year than all last year. Good companies excell regardless of the market conditions.

"This is what I think will happen. The bubble won't burst all at once but will deflate like a tire with a slow leak for years to come. Every year will bring slightly lower prices than the last until we reach the bottom. Buyers will buy thinking the bottom has been reached but prices will keep going exruciatingly lower year after year." Yep, I am sure it's correct. Prices will reach zero! Sellers actually will end up giving away their properties free and some even will throw in incentives too!

Sorry guys, IMHO, this thread really is getting to be a free entertainment!


Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

Edited by - John S. Rabi on 11/16/2006 13:11:58

Edited by - John S. Rabi on 11/16/2006 13:17:36

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Now you're the one providing me with some entertainment. Did I ever say prices are going to zero? If declining prices don't matter to you, why do you keep posting in this thread?

I take back what I said about Dirgo being more honest than you. You really believe in what you say, that prices will keep going higher until they reach the moon. Dirgo on the otherhand has the honesty of a politician. He acknowledges that prices have come down but tries to downplay it as much as he can. But you both are blind to your own biases. First you deny that there has been any decline in prices. Then you say the decline is just a temporary phase. After that that declining prices won't really matter because sales will remain high, like in the Aesop's fable of the fox and the grapes.

The topic of this thread is "Decline in Real Estate". Putting emotions aside, what do you think will really happen? I think they will keep going down gradually but I don't say this with any glee or happiness, and no I don't think they will go down to zero. A deline of 40% from the peak seems very plausible though.

Rabi, your opinion is that the recent decline is completely temporary and prices will go back up and increase at the same rates they were rising at before, over 100% annually?





Edited by - bystander on 11/20/2006 10:27:23

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the housing market/Real Estate has had a history of "peaks & valleys". But never before this time has housing been so profoundly tied the national economy! Our housing situation could be worse than it is. Currently there are no signs of the bottom being anywhere in sight! Some of you don't wanna hear that, but it's the truth!

I'll be the first to tell you this gloom also, we shouldn't fear Radical Islam. Who we should fear is the largest economy in the world, who happens to be a Communist country to boot...CHINA!?!? Since Bush has decided to push us back in Reaganomics, China now has us(America) by the short hairs. China's holdings of is one trillion, most of it in US treasureys. If China decides to stop buying our debt, our interest rates could shoot up as high as 10-15- 20% China is also holding up the already weak housing market up in this country too. China is buying less treasurey debt these days and buying more mortgage debt from Fannie Mae and Freddie Mac. So to some extent, China is holding up this already weak housing market. China has a hand in keeping mortgages down right now in America because they are buying up all our debt. That's the beauty of Reaganomics.....it SUCKS! We become very vulnurable, China holds $327.7billion of our debt. Thanks president Bush