2011 Prices Down, 2012 Hopes Up

Happy new year Redfinnians!

One more little gift under the tree for you! Just in time for the holidays, we released Redfin for iPad!

Like a magnificent medieval triptych, the app has a three-in-one interface — a map, a kaleidoscope of listing photos, a single house in all its glory — all in one screen. The app shot to the front page of Apple’s App Store from the day of its debut.

One other sugar-plum feature for Redfin fans: we now offer a monthly home report that shows you pictures and prices for all the homes that sold in the four or five blocks around your place. To sign up, just search Redfin for your home address, view the property’s details, then click the big sign-up link.

Hope and Darkness

The holiday spirit seems to have affected more than Redfin’s elf-engineers. Prices fell again, and yet analysts and investors are daft with the holiday spirit, convinced that real estate may finally be ready to recover. Why on the darkest day of the year, are we always so hopeful?

One can only conclude that hopefulness is in our nature, and thank goodness it is! Let’s consider all the reasons this coming year will be better than the last.

Prices Down 1.2%

But first, that lump of coal! The latest numbers show prices fell 1.2%:

Market MoM Change YoY Change Date of Max Change from Max Prices Last at
This Level
# of Months
of Decrease
Phoenix Real Estate 0.3% -5.1% Jun-06 -55.8% Feb-00 0
Los Angeles Real Estate -1.5% -4.9% Sep-06 -39.6% Sep-03 3
San Diego Real Estate -0.6% -4.5% Nov-05 -38.9% Oct-02 3
San Francisco Real Estate -0.7% -4.7% May-06 -39.4% Jan-01 3
Denver Real Estate -0.2% -0.9% Aug-06 -10.6% Jun-02 2
Washington DC Real Estate -0.3% 1.3% May-06 -25.4% May-04 1
Atlanta Real Estate -5.0% -11.7% Jul-07 -33.2% Aug-98 3
Chicago Real Estate -1.8% -4.8% Sep-06 -31.0% Aug-01 2
Boston Real Estate -1.1% -1.1% Sep-05 -16.3% May-03 3
Las Vegas Real Estate -1.5% -8.5% Aug-06 -60.7% Jul-97 4
New York City Real Estate -1.2% -2.0% Jun-06 -22.1% Mar-04 2
Portland Real Estate -0.5% -4.7% Jul-07 -27.4% Dec-04 1
Dallas Real Estate -0.9% -0.6% Jun-07 -8.7% May-04 2
Seattle Real Estate -1.0% -6.2% Jul-07 -30.2% Aug-04 3
20 City Index -1.2% -3.4% Jul-06 -32.1% May-03 2

Case-Shiller Home Price Index for October 2011, Not Seasonally Adjusted

Three months ago, we said that price gains were just a summer fling. Sure enough, once you adjust for seasonal swings, the index is now at a new post-bubble low.

But hey, it could be worse: last October, experts predicted a 5% – 10% drop but in fact prices over the past year dropped only 3% – 4%. As we’ve been saying all along, we’re at a rocky bottom with a downward trend. The West is stable:

Case Shiller Home Price Index - West

The East and Midwest, slightly less so, mostly because Atlanta fell off a cliff:

Case Shiller Home Price Index - East

Sure, Call It a Comeback If You Like

Now our favorite housing swami, the studly Bill McBride at Calculated Risk, has said that most of the price declines are over. All week, the most-emailed story in the Wall Street Journal has been about the hedge funds now buying up residential real estate:

Big money is starting to wager on housing. Hedge funds run by Caxton Associates LP, SAC Capital Advisors LP, Avenue Capital and Blackstone Group LP have been buying housing-related investments, betting on a rebound. And formerly bearish research firm Zelman & Associates now predicts a housing pickup, as does Goldman Sachs Group Inc.

We aren’t surprised: all year, Wall Street has bombarded our site with web robots trying to download data in bulk. But the Street has been wrong before. As one analyst cautioned: “The smartest money in the world has been carried out on stretchers betting on a true recovery for housing.”

You Want Good News? We’ve Got Plenty

What has convinced some investors that the housing market will be nice instead of naughty? All sorts of good news:

But don’t get cocky kid! Our own opinion is that home prices won’t fall or rise much in 2012. Prices can’t rise far before banks and regular home-owners put more properties on the market. And they can’t fall far because of increasing rents and — for now — declining foreclosures.

The Monster Under the Bed

The $24,000 question is: will foreclosures come back with a vengeance? Insiders warn that the backlog of foreclosed properties is “shockingly large,” a point no one disputes.

We worry about this, but less than others: the banks themselves don’t want to go back to 2008, when they ruined their own balance sheets by flooding the market with foreclosures at fire-sale prices. And many home-owners fretting about expiring teaser rates are discovering that the new rate is lower than the old one.

Rates Are Low, and May Stay That Way

So what I worry about is interest rates. How long can the whole economy hold together given the apocalyptic politics around U.S. budget deficits? Rates keep falling, now to 3.95%, and government lenders now expects rates to remain low at least through mid-2012.

Interest Rates Falling

Which brings us to our final prediction for 2012. If prices are low and relatively stable, and rates remain very low, sales will pick up. Just a guess. Or maybe a hope. Happy new year, and thanks for all your Redfin support!

Best, Glenn


  • Alan

    Any predictions about what would happen with a historically low but dramatically higher rate? Say, 6%? I don't see that in 2012 but in 2013 or 2014, something has to give.

    • http://blog.redfin.com GlennKelman

      I worry about that, and think the result could be years and years of stagnation, and more foreclosures.

  • Jessicaappelgren

    Totally impressed by this newsletter. As my husband and I navigate the waters of our first home purchase, this totally well-written, funny, informative and entertaining newsletter has given us a lot of perspective. Other industries could learn a few tricks from you. Keep up the banter in 2012 please!

    • http://blog.redfin.com GlennKelman

      That is so kind of you to say Jessica. You made my day!

  • Cuzsis_g

    Ultimately the housing market depends on two main factors on the buyers side. The ability to obtain financing, and a steady job that pays enough to pay for the financing.

     While there has been an increase in hiring, the jobs being hired for are still paying relatively low, particularly when you compare it to what people want the housing market to be selling at. In plain terms, current jobs don't pay enough for $400K housing. (I can only speak for the Seattle area and greater Eastside, your mileage may vary.)

     Couple that with banks that are still hesitant to loan (for good reason considering the stability of the job market is still in question). Means the amount of buyers you will see will remain depressed until such time as the job market picks back up.

     This is why a well priced house will go quickly, but the higher priced houses (even if they are a good “deal”) lag on the market.

     Rents for apartments are running high, it's true. But they are still nowhere near what a mortgage for an average priced house is.

     There is also the “shadow rental market” to consider. These are people who have houses that they can't sell, but also can't live in, for one reason or another. Generally they are just happy if the renter can pay the mortgage and if the house was bought long enough ago, or was a foreclosure purchase, that rent can be comparable to what apartments are running for. However it will be for a much larger place, or at least one that has a yard with it. They might even be willing to take a slight loss on the mortgage and pay the difference to keep the property out of foreclosure.

     People who can only buy a small house now, might opt to rent a much larger house for the same price while they wait for the cost of housing to equal out to their paycheck a bit more. Everyone has already learned over the last couple years that it doesn't pay to jump in early, so you won't see much of that. Inflation in housing prices suck, and it's nearly impossible to get out from under it once you sign on the dotted line. It's a tough painful lesson to learn, but I think the majority of the public has now learned it and is a lot more careful about purchasing a house these days.

    /these are just my armchair economics, nothing more.

    • http://blog.redfin.com GlennKelman

      Great analysis. A lot of buyers also need to be able to sell their home first…

      • Cuzsis_g

        Thank you!

         I really enjoy your monthly newsletters (I share them with my dad) and it's a pleasure to have a place to sit and toss ideas and theories back and forth. There's a lot of things at work out there right now..

         We've been following the housing market pretty closely since 2006 or so, and been using your website since 2008? I can't remember, lol. Long story short, my husband and I got married in 2006 and were making plans to save up to purchase a house….which with the recession and all, hasn't happened yet.

         So, we're still following things…and the times are interesting indeed.

        • http://blog.redfin.com GlennKelman

          Tim has mostly been on your side hasn't it?

          • Cuzsis_g

            That's mostly how we've looked at it. :)

             It is frustrating watching the banks leave houses vacant for over a year though. Up here if you leave them sit that long they start to rot. We saw a pretty little 2 bedroom house go from “Move in ready” with new windows and carpet, to “tear out the kitchen to replace moldy floors and walls and re-do the bathroom” because the bank won't take care of even the little things (like a slow leaking pipe) that naturally occur to a house, but at the same time just didn't want to believe that the market wouldn't pay $250K for it.

             They had plenty of offers in the $150K range and ended up finally letting it go for $135K or so over 2 years after it initially went on the market. Thankfully the person that bought it put some elbow grease into it and is returning it to it's former glory. Other houses aren't so lucky though.

             I'm not sure if you guys have noticed this, but I'll throw it out there for you. I have been following the taxes on some of the foreclosed houses and several of them appear to not be getting taxes paid on them either by the banks. Sometimes the houses are worth quite a bit. I'm not sure if this is a large scale problem or not. Around here it takes 3 years before the county can/will seize property for delinquent taxes and so we're only just beginning to get to the point where foreclosed homes might be part of that. The county rep I spoke to said she believe that the banks just can't keep track of all the properties that they have. This may be true, I'm not sure.

          • http://blog.redfin.com GlennKelman

            Taxes on foreclosures is a really great story idea for the national press; I'll look into it! Thanks!

          • Cuzsis_g


             I'm very curious to see if this “not paying taxes” is just “business as usual” for the banks. Given their track record of not putting money out or loans unless they absolutely have to it wouldn't surprise me…

          • http://blog.redfin.com/ GlennKelman

            I forwarded your comment over to a reporter at NPR, who may contact you…

    • Ironmike

      Interesting what you say about the “shadow” rental market.  Bellingham seems to be experiencing somewhat of a glut of single family homes on the rental market for exactly that reason.  Can't live in them, can't sell them for any where near their perceived worth.  This is pushing rents down, making the properties even more difficult to sell because investors can't make them cash flow, and living off of the appreciation seems dubious at best.  At least for the next few years.  It's still a long, tough, road in front of us.

      • Cuzsis_g

        Interesting. Sounds like this might be something that is happening beyond the “Eastside” then.

  • http://www.balkantrails.com/bulgaria-tours/ Thomas Gamble

    I wish you a year full of achievements in 2012 on all levels!

    • http://blog.redfin.com GlennKelman

      Good to hear from you Mr. Gamble. The best to you, too…

  • http://www.hawthornerealty.ca/ toronto homes for sale

    If prices are low and relatively stable, and rates remain very low, sales will pick up. Just a guess. Best of luck for 2012…:)

    • http://blog.redfin.com GlennKelman

      That's our thinking too…

  • http://www.onlineverpackungen.de/ karton

    I think what goes down must come up… sooner or later.

  • Albert

    I live in Modesto California, located in Stanislaus County. Jobless rate as of Oct 2011 is 15.2 percent. Wages are flat, and those who have jobs have not seen a raise in 2-3 years. Local governments are laying off workers: police, fire, education, admin and so on. The private sector is not hiring and those who do, only offer low paying jobs.

    My prediction for our local market, is lower prices or flat prices. You can't buy a home if you can not qualify for a mortgage loan. No JOB=NO LOAN! LOW PAYING JOB=>$200K loan. BAD CREDIT W/JOB=NO LOAN!
    These scenarios, and many others, lead me to believe that our local market is not going to BOOM anytime soon.

    Banks must have a fire sale and clear inventory by lowering their prices. They need to stop waiting for jobless rates to decrease or for wages to increase because the reality is that they wont! Sell off your inventory at a FMV price, keep mortgage rates low, and the market will at best become stable. This will lead to future growth in housing but will NOT create the loud and INSTANT BOOM that WALL STREET would like to hear. Wall Street made their money, now it's time to allow people a fair shot at a fair mortgage loan on a home valued at a fair price.

    • Cuzsis_g

      Our banks refuse to let properties go for their current worth. It's frustrating. I just posted in my earlier (thread? I guess?) up above about what's happening to houses up here because of that.

    • http://blog.redfin.com GlennKelman

      Sounds like you think the band-aid still needs to be ripped off in Modesto… I was hoping we were mostly through the worst of it in many places…

      • Albert

        First off. Glenn, great job with Redfin.com. It has been a great tool on our quest in finding a home. Redfin.com stands out from the other online competitors.It would be great if you extended your services to Stanislaus county.

        In response to your answer. The band-aid has been ripped off. Our citizens are struggling. The wounds must now be healed. The banks hold the ointment that will heal the wound. Release the so called toxic assets onto those of us who are willing to pay fair market value price for them.

        We will occupy them as homes, and restore others for rental homes.
        Banks are holding unoccupied properties hostage by listing them at unrealistic prices for our area or by not listing them at all. The more that the process is prolonged, the longer that ANY recovery will take place. The banks were bailed out and their losses minimized or now fully recovered. Sell off the toxic assets to willing buyers and maybe, just maybe housing will normalize once again.


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  • Mike

    I am a retired community banker.  Glenn, in your last newsletter you stated that the numbers of foreclosed properties is shockingly large and that banks do not want to flood the market with foreclosures because this will further depress prices. With this assertion, I agree.  However, you may or may not be aware of the existence of a banking regulation which requires that banks divest themselves of other real estate owned within a five year time period.  Under certain limited circumstances an extension can be obtained with regulator approval for another five years.  The five year time period is rapidly approaching.
    Consequently, it appears to me that there is a likelihood that sometime in the not too distant future, the foreclosure flood by banks may appear which may drive down prices even futher. 

    • http://blog.redfin.com GlennKelman

      Wow, that is a really smart comment. I am going to dig into this one… Do you think the bulk of foreclosures, at least when the real estate is owned outright by the bank, are two or three years old or more like four or five?

      • Mike

        Technically, the time period for banks begins to run when the foreclosure is complete and the bank is carrying the foreclosed real estate on the bank books as “other real estate owned”.  Your guess is as good as mine as to collectively how long the average foreclosed real estate nation wide has been on the books of all of the banks. Obvously, there was a delay in getting foreclosures completed with the robo signing mess.  However, from personal experience, I do know that the examiners will force the bank to sell, regardless of price, upon the expiration of the five year time period.  The examiners do not care what the bank sells the real estate for and consequently, when this happens, it can severely impact the capital ratios of the bank.  If the capital ratio is too low, the examiners then shut down the bank after they have given the bank a bit of time to raise capital. Presumably, most of the nationwide banks foreclosures have been approximately on the same time schedule, so it would appear that the possibility exists that the examiners could force all banks to have a forced sale at any price and this could have devistating results on nationwide real estate prices.


        • http://americarealtyonline.com/ Flavio

          hopefully the regulatory agencies will make a judgement call and be more lenient given the times (speaking as a former examiner)…

          • Cuzsis_g

            I would like to research more into this. What branch of the government deals with this? (An examiner from ___ dept?)


          • Lonnell Branch

            12 USC 29 established a bank’s authority to hold real estate. It permitted a bank to hold “Other Real Estate Owned” under certain circumstances for a period no longer than five years. The Depository Institutions Deregulation and Monetary Control Act of 1980 amended 12 USC 29 to allow a bank to hold “Other Real Estate Owned” up to an additional five-year period beyond the original one, with the approval of the Comptroller. The Comptroller may approve the
            additional holding period if the bank has made a good faith effort to dispose of property, or if disposal within the initial five-year period would be detrimental. source: http://www.occ.gov/publication

  • Paul Shelton

    As an investor in real estate, the question for me is whether I should take a loss and move sideways, as it were, to other investments.  I think the answer is yes.  Housing does not seem likely to appreciate for maybe decades due to the economic collapse of our times.  What diminished equity I have, invested at conservative rates, will still put me ahead of where real estate returns will get me.  Staying in real estate will never make me whole, much less show a gain, in the time I have left above ground.  I love your analysis, as others have expressed — always honest and sincere.  I don't detect the slightest whiff of smoke,  Thanks, Glen.

    • http://blog.redfin.com GlennKelman

      Few investors recognize, as you do, that sunk costs don't matter. What matters is what will appreciate most now. I'm glad you're putting your money where you brain — and not your heart — is…

  • http://www.valuehomes.ca/Brampton_Homes/page_2201415.html Brampton Homes for Sale

    Its a sad news but hope to get the best out of it..Prices fell again, and yet analysts and investors are daft with
    the holiday spirit, convinced that real estate may finally be ready to recover.

  • gforce

    “Now our favorite housing swami, the studly Bill McBride at Calculated Risk, has said that most of the price declines are over.”

    the full quote from CalculatedRisk:

    “prices have fallen another 3% to 4% on these indexes – with more to come – but most of the price declines are over.”

    Bill is predicting more price declines in 2012 but not as large as in the past.

    • http://blog.redfin.com GlennKelman

      Or since he is writing about the monthly index updates, he is predicting that there will be months that prices decline, but that most months there won't be significant declines. I wasn't trying to misquote him, but I'm glad you provided the full quote.

  • http://www.fashionablaze.com/ Fashion Shows

    Price must be at stable level in 2012….

  • Chinadollcooper

    What would be smart on the Banks side…is to get with a Realtor and price the foreclosures at Market Value instead of just dumping them on the market at depressed prices.  What is frustrating to me is to see in my area where the home is priced at below market value and then in 30 days cut another $10 – 20,000.  I'm hoping to sell my home in the next two years when I retire.  However, I can't because I'm still upside down.

    • Cuzsis_g

      The banks are only listing the prices below market value to get people to put offers on the house. After they get an offer (or two). Then they come back with a counter offer that is closer to “market value”. At that point a lot of people walk away.

       Part of it is because psychologically it feels similar to a bait and switch, like the bank is trying to take advantage of them.

       The other part is the banks turn off the heat and hopefully the water when they evict the previous tenant. So if the house doesn't sell quickly the lack of heat (and overall lack of maintenance since the banks won't do *any* work on a foreclosed house) lead to a house that in a short amount of time becomes a “fixer” and at that point they can't sell it at market price. Although that doesn't stop them from trying, which leads to the house being on the market even longer.

       For the quality of product the banks are trying to sell at so called “market price” you can get a house from a homeowner who actually tried to make it “move in ready” for you.

    • http://blog.redfin.com GlennKelman

      Agree, but the homes are in worse shape because no one has lived in them for a long time and the banks have less time to sell them.

  • http://www.shvrealestate.com/ estatereal56@yahoo.in

    An impressive post….
    As an investor in real estate, the question for me is whether I should take a loss and move sideways, as it were, to other investments.

    • http://blog.redfin.com GlennKelman

      Paul Shelton, earlier in the comments, had the same question… It's the right question to ask…

  • http://www.foreclosuredeals.com/ John Evan Miller

    I definitely think that the market will improve throughout 2012–it will not be back to “normal” but I definitely think it will be much better.

  • JCM

    I'm new to real estate investing, and could use some advice.  I am trying to decide if I should jump in and purchase an investment home.  In my area I can put down 20% and buy a decent 3/2 home for around $250K, and rent it out for $1800/month.  With rates around 4%, this cashflows nicely.  While it may take years before I see any price appreciation, I have someone making the mortgage payment and putting a few hundred dollars a month in my pocket, along with some tax benefits.  Ofcourse I could also invest the money in the stock marke, mutual funds, etc.  Appreciate any input or advise.

  • Mike

    Here is a follow up from the retired community banker about the regulations requiring banks to sell other real estate owned within five years.  A national bank, pursuant to 12 USC 29, sec.29 can hold the real estate for 5 years but not to exceed an additional five years if 1. the bank made a good faith effort to sell within the first 5 year term or 2. if the sale within the first 5 year time period would be detrimental to the bank. I was from Okla and the state could allow an additional 5 year time period with regulator approval but the bank would have to charge off 10% of the loan balance each year until the elapse of the second five year time period at which time the whole remaining 50% balance would have to be charged off.  I believe that most state banking laws are similar. Consequently, there is not much inducement for the banks  to dispose of the real estate within the first five year time period and if the regulators grant an extension for a second five year period, then it becomes a bigger inducement for the bank to sell the property  at a very reduced price since they are charging off the balance against income.  Consequently, it appears to me as I said in an earlier post, that nationwide collectively the banks are going to come up against the five year rule and this may put more pressure at approximately the same time on the housing market. If I am correct,then there may be more lowering of home values.

  • Diplomatbob

    Why does Redfin consider prices falling as a lump of coal?  I'm loving the falling prices, as it brings decent houses into our price range, and will allow me to buy a place for my broke parents as well.  (I'm going back to DC, were prices have either stayed flat or kept rising for the most part.)  The psychology of chasing constantly higher prices in real estate has led to at least 3 bubbles in my lifetime, with the most recent being the largest.  I sold my last place in 2006 because I thought the bubble was close to bursting — the idea that “no one knew” is ridiculous.  Plenty of good blogs and other commentary, plus some thinking among a few government officials, was widely available.  The Fed was asleep at the switch.  The most recent transcripts are depressing.  

    In any case, considering that the majority of your users are, I'm presuming, buyers, why focus on price declines as constantly bad?  It is what it is, but the declines help many of us and will bring the market back to equilibrium faster.  Like one poster above, I have family in Modesto, and would prefer to see the foreclosed places sold as fast as possible to allow prices to find their bottom.  Creating new buyers who are quickly underwater is not useful.  The U.S. would benefit from lower prices, reflecting lower wages and wealth, and having reached bottom we could look seriously at growth.  Paying a bank is much less useful than spending the extra money saved on housing at the local Costco/Safeway/Whole Paycheck.

  • http://twitter.com/pauldickey Þåü? Ðîçkê¥

    Dear Glenn: Awesome job with what you've done here at Redfin! While you're site continues to grow, just hope the Android app also improves. There's no reason why Zillow should claim to have the #1 real estate app, I am loyal user and spend more time on Redfin than I do on Facebook…which hopefully communicates volumes to you. Stay hungry – Keep reinventing Redfin app!! Thanks, Paul.

  • Ed~

    Glenn, nice post for the purpose of keeping the industry upbeat. Any post that looks primarilly at the next 6-12 months will tend to sound like yours… “Cautiously Optimistic” with reasons for that. Otherwise, there would be no reason for the post. This, is my take as a licensed RE Agent and Investor.

    But Cuzsis_g and banker Mike have the longer view, and the landscape for a turnaround is not positive at all. It seems like all parties invested in Real Estate are hanging by their nails.

    Banks don't want to show the true value of the assets their books and risk the examiners coming in. So they can only try to hold onto foreclosed houses in some dark ledger… a ticking bomb strategy at best.

    The Gov't & Fed is holding interest rates low for various economic reasons but fear that any incentive for average American's to buy houses would be hurt by rising mortgage rates. That's because they can't figure out how to stabilize or increase the average American's wages. 

    Regardless of how many short-term profits minded Hedge Funds choose to invest in foreclosures (and what? -become landlords?), it is still up to working Joe's invested in keeping their homes or buying new ones that would stabilize Real Estate Market. Really, that's the reality for the rest of the Economy since a Jobless Recovery hasn't translated to actual economic stability. Governments have also come to recognized that Home Ownership is one of the most important stabilizing factors of all aspects of a country's economy.

    That is why the word Foreclosure is so devastating to anyone who cares about their nation's economic stability.

    We've all heard the word Consumer Confidence as the driving factor in the economy. Let's be realistic about the confidence most American's feel about their prospects for a good, stable future right now. Even those who found their ARM's adjusting to lower rates than the previously paid (incredulously), are they confident that things would stay good even in the short term? Not likely. Those folks probably closed on their properties at or near the height of the Boom and are now upside down in market value, which may be OK if it is the home they are living in, but doesn't exactly inspire confidence in their prospects for the future. 

    For all these reasons, there is as little to no hope for the RE Market will “turn around” if only because the same can be said for the general economic climate right now for average Americans. The two factors are not divorced in reality.

    Ultimately, houses have their foundation in the ground and the people who occupy them. How they will be occupied in the near future may be a whole different story than what we are used to.

  • http://www.destination360.com Destination360 Travel Guides

    From my observation on the buying end it appears prices have declined back to about 2004. Does that sounds about right? If so many sellers have it in their head to start high and negotiate down 10-15% from there. I've found it a long “year +” process to upgrade when many sellers are stuck on a number that's not realistic in today's market, or is that the agents advising them?

  • Dwight_pinkney

    I've been looking for two years and although we are a little picky. What we run into is not finanacing, it's greed on the sellers. We've put bids on two houses In 1-1/2 months and nothing, because the sellers are asking to much for there houses and are not paying attention to what the comps are In the area. Even If we go a little higher than the most expencive house In the area they are still not willing to sell. And the bad part about it is the house sets empty for months.

  • Andrea Bonamini

    so 2007 + 5 year is 2012…If the bank will release the foreclosures accumulated just after the 2007 home-bubble, then this year the prices will collapse.

    Which signals do we need to monitor to verify when the announced downtrend will start?
    Is it wise to buy now or this is just a peaceful moment before the big market storm?


  • http://www.facebook.com/profile.php?id=1498293065 Ron Terr

    i worry about what happens when all the investors decide to dump their slum lord homes after finding out that they bought too many and after a few years of renting them out to slimy renters the lower prices created by the run down slum lord homes on the market .  

  • http://www.valuehomes.ca/Brampton_Homes/page_2201415.html Brampton Real Estate

    I love to read out such blogs.I am really thankful to you to share this blog and I wish you a year full of achievements in 2012..

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  • jim

    We started looking into buying houses in Las Vegas 5 months ago, where very nice looking houses were selling over 65% off. We bought one in February and another one in March, and have another one pending.  We have friends looking at buying as investment properties (being disappointed with the stock market over the past 15 years), but recently, there is a dramatic change in inventory and houses are selling or being offered 5k to 15k above listing prices.  Some houses have 15 offers.  What's going on?  Another housing boom looming?

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