If Karl Denninger is right and the long-term trend for house prices is 3 times income, instead of 5 or 6 as it seems to be now, then houses remain overpriced in real terms.
So even though house sales are seizing up and prices dropping, shouldn't we go ahead and sell anyway?
7 comments:
I tried persuasion in 2005. Failed.
I am trying to do this now...average time a house is on the market in washington state is 11 months. ughh!
Houses, pah! What about our pensions? My pension scheme's website assures me that:
"We are therefore confident that there will be no impact on the fund’s abilities to meet its obligations to its members going forward." What about its obligations to those of its members who are going backwards?
If you can sell now for 25% less than your house was worth in Aug 2007 my advice would be sell. You'll have cash in the bank, prices will probably fall more than this by 2009/10 anyway. Then you would be in a very good position to find a seller who NEEDS to sell and make a stupid offer they have to accept. This is already happening. A friend's father-in-law put an offer of 110K in on a 125K asking price. No deal said sellers. 6 months down the line thay came back and asked if offer still stood. He offered 85K. AND THEY ACCEPTED!!! Harsh but that's life. And this will only get more prevalent as more people lose their jobs, remortgage at higher rates, get into arrears etc etc. The problem with all this is you have to sell your house first......
appreciate your comments sobers. hoping to get 60% more than it was worth in aug. 2007 as i bought the house condemned an it is now hospitatable.
Prices will be down 70% from the peak in real terms before this is over.
What if they move the "bottom up" i.e. inflate and raise wages?
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