Comments on: Why The Real Estate Market Isn’t a Free Market http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html Redfin Corporate Blog Sun, 22 Nov 2009 20:09:04 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Are Listing Agents Hurting Their Clients by Hiding Addresses? | Redfin Corporate Blog http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6356 Are Listing Agents Hurting Their Clients by Hiding Addresses? | Redfin Corporate Blog Tue, 11 Aug 2009 00:24:26 +0000 http://blog.redfin.com/?p=1327#comment-6356 [...] their fee by representing both buyer and seller in the same transaction. Recently, we’ve seen this happen most often with REO properties, which have been in high [...] [...] their fee by representing both buyer and seller in the same transaction. Recently, we’ve seen this happen most often with REO properties, which have been in high [...]

]]> By: Redfin’s July Newsletter… | Redfin Corporate Blog http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6305 Redfin’s July Newsletter… | Redfin Corporate Blog Wed, 29 Jul 2009 16:25:55 +0000 http://blog.redfin.com/?p=1327#comment-6305 [...] in a year, many banks are staffing up for more foreclosures by September. What this means is that prices won’t rise with demand: the real estate market is like a grocery-store cereal aisle, where every time someone buys a new [...] [...] in a year, many banks are staffing up for more foreclosures by September. What this means is that prices won’t rise with demand: the real estate market is like a grocery-store cereal aisle, where every time someone buys a new [...]

]]> By: Oakland Cowboy-Oakland, CA Homes for Sale http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6157 Oakland Cowboy-Oakland, CA Homes for Sale Mon, 13 Jul 2009 04:09:08 +0000 http://blog.redfin.com/?p=1327#comment-6157 In California there's tons of foreclosures that haven't even been processed yet. I sure hope the real estate market starts to recover before they all hit. In California there’s tons of foreclosures that haven’t even been processed yet. I sure hope the real estate market starts to recover before they all hit.

]]> By: San Francisco Kid@San Francisco, CA Homes for sale http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6154 San Francisco Kid@San Francisco, CA Homes for sale Mon, 13 Jul 2009 03:45:04 +0000 http://blog.redfin.com/?p=1327#comment-6154 Yeah, I am hearing reports all over about all these foreclosures hiding in the background. I hope its not as bad as some people think. Yeah, I am hearing reports all over about all these foreclosures hiding in the background. I hope its not as bad as some people think.

]]> By: Brad-Bakersfield Homes http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6153 Brad-Bakersfield Homes Mon, 13 Jul 2009 03:42:24 +0000 http://blog.redfin.com/?p=1327#comment-6153 This is pretty scary stuff. What happens when all these foreclosures hit the market? This is pretty scary stuff. What happens when all these foreclosures hit the market?

]]> By: Rob Hahn http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6083 Rob Hahn Wed, 08 Jul 2009 15:13:04 +0000 http://blog.redfin.com/?p=1327#comment-6083 Glenn -- Love ya man, and your blog is definitely one of the best in our industry. But this post, I don't get. Why is hoarding behavior "not a market"? That strikes me as rational behavior by the banks and by the agents as well. Isn't avoiding acknowledging the loss market behavior? My 401(k) is totally tanking on paper; if I were to sell now, I'd have to recognize those losses. I'm choosing to hold on to it, and wait for recovery. Am I behaving in a non-market fashion somehow? Banks choosing all-cash offers 20% below another offer with risk of loan failure is non-market behavior how? You even point out that cash is king; why is a bank's choosing to be risk averse an indication that the real estate market is "not a free market"? Then your solution is for government intervention? I'm not seeing how THAT is any sort of free market under any definition. If anything, isn't the problem the numerous instances of government intervention, whether well-intentioned or not, such as the moratorium on foreclosures? What am I missing here? -rsh Glenn –

Love ya man, and your blog is definitely one of the best in our industry.

But this post, I don’t get.

Why is hoarding behavior “not a market”? That strikes me as rational behavior by the banks and by the agents as well. Isn’t avoiding acknowledging the loss market behavior? My 401(k) is totally tanking on paper; if I were to sell now, I’d have to recognize those losses. I’m choosing to hold on to it, and wait for recovery. Am I behaving in a non-market fashion somehow?

Banks choosing all-cash offers 20% below another offer with risk of loan failure is non-market behavior how? You even point out that cash is king; why is a bank’s choosing to be risk averse an indication that the real estate market is “not a free market”?

Then your solution is for government intervention? I’m not seeing how THAT is any sort of free market under any definition.

If anything, isn’t the problem the numerous instances of government intervention, whether well-intentioned or not, such as the moratorium on foreclosures?

What am I missing here?

-rsh

]]> By: Contradiction in the Housing Market is Keeping Prices Low - MortgageCalculator.org Blog http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6078 Contradiction in the Housing Market is Keeping Prices Low - MortgageCalculator.org Blog Tue, 07 Jul 2009 12:06:53 +0000 http://blog.redfin.com/?p=1327#comment-6078 [...] declines with low inventory is to understand that the market is being manipulated. According to a recent report by Glen Kelman, CEO of Redfin, “The market has become distorted so much that it is ridiculous to pretend [...] [...] declines with low inventory is to understand that the market is being manipulated. According to a recent report by Glen Kelman, CEO of Redfin, “The market has become distorted so much that it is ridiculous to pretend [...]

]]> By: Neal Adler http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6071 Neal Adler Sun, 05 Jul 2009 06:56:24 +0000 http://blog.redfin.com/?p=1327#comment-6071 With regards to point number 2, this may be the case in a few instances but as an REO agent my clients I am required to place the listing in the MLS. At least here in California failing to do so is probably a violation of the business and professions code, a violation of the NAR code of ethics, and a potential law suit against the listing agent from the seller. There are a number of factors that are influencing the market here in California. Interest rates are up but, are still at historically low levels. There is still a pent up demand, especially at the lower price range. It is true many properties are sellling with multiple offers. Inventories are somewhat depleted. The moratorium on foreclosures is keeping the inventory low. The HVCC issue with regards to the appraisals is wreaking havoc, out of the area/inexperienced appraisers are causing problems with properties not appraising when the value is there due to incompetent and inexperienced appraisers. In the final analysis the items 1 and 3 may be true, but I seriously doubt that agents hoarding listings is significant enough to affect the market. I just don't that ocurring that often. With regards to point number 2, this may be the case in a few instances but as an REO agent my clients I am required to place the listing in the MLS. At least here in California failing to do so is probably a violation of the business and professions code, a violation of the NAR code of ethics, and a potential law suit against the listing agent from the seller. There are a number of factors that are influencing the market here in California. Interest rates are up but, are still at historically low levels. There is still a pent up demand, especially at the lower price range. It is true many properties are sellling with multiple offers. Inventories are somewhat depleted. The moratorium on foreclosures is keeping the inventory low. The HVCC issue with regards to the appraisals is wreaking havoc, out of the area/inexperienced appraisers are causing problems with properties not appraising when the value is there due to incompetent and inexperienced appraisers. In the final analysis the items 1 and 3 may be true, but I seriously doubt that agents hoarding listings is significant enough to affect the market. I just don’t that ocurring that often.

]]> By: NIck http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6051 NIck Wed, 01 Jul 2009 20:23:56 +0000 http://blog.redfin.com/?p=1327#comment-6051 This is how they make money This is how they make money

]]> By: Why Get a Real Estate License? http://blog.redfin.com/blog/2009/06/why_the_real_estate_market_isnt_a_free_market.html/comment-page-1#comment-6050 Why Get a Real Estate License? Wed, 01 Jul 2009 18:42:58 +0000 http://blog.redfin.com/?p=1327#comment-6050 Predatory lenders are making things harder for everyone involved including agents. Predatory lenders are making things harder for everyone involved including agents.

]]>