From the Big Bubble to Suds - 5 years later. What's the BIG question everyone is asking?

By
Real Estate Agent with Keller Williams Excellence

It was July, 2005, the headline of the Baltimore Sun read "AREA HOME PRICES HIT RECORD".  And, there I was in the photo heading down the front stairs of a beautiful home in Roland Park in Baltimore which I had just shown to my clients.

The article quoted 3 agents.  I was one of them.  The whole point of the article was so that the media could ask the question: When is the Real Estate Bubble going to Burst?  One of the other agents was quoted in the story as saying, "Its a phenomenal increase and there really seems to be no end in sight".  Well, I guess he was wrong.  For my part of the article, I said that there seemed to be something happening with buyers that Summer of 2005 and that they were no longer willing to jump on any available listing but were being a lot more hesitant in their buying decisions.  I could tell something was changing.

Ok, 5 years later - What's going on now?  What's the BIG question everyone is or should be asking now?  Its this: HAVE WE HIT BOTTOM?  Well, Real Estate markets can only be discussed on a local level, right?  Here's my take on the current state of the Real Estate Market in the Baltimore area: We have not hit bottom and until we get the close to 16% of consumers back to work, we will continue to see the erosion of our home values.  Are we waiting for another shoe to drop?  Probably.  There are still thousands of foreclosures waiting to hit the market and, again until we see the end of these, don't expect our local market to stabilize substantially.  That's it. 

What does this mean to you?  If you own a home and want to move - You probably don't want to wait until your home increases in value.  Why?  First, because you may be waiting until the late 20teens before your home appreciates.  "Well," you ask, "Won't the homes that I might want to purchase also be worth less if I wait?  Sure, but it is the equity position that you have in your current home which is eroding and that is the money you need for that next purchase.  Remember, your lender gets paid off first at settlement and then you get what's left. 

The media is no longer chasing the Big Bubble with a pin.  They are, however, searching for any suds left in the glass after the party is over. 

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Rainmaker
435,807
Letitia Stevenson
BHHS Fox & Roach | www.DelawareValleyRE.com - Greenville, DE
Delaware Valley Real Estate, Lic'd in DE, PA & MD

Scott, Welcome to Active Rain! Active Rain is a great place to share your knowledge, expertise and thoughts, as well as network and learn so much from the vast pool of talent already onboard.

Welcome Aboard and Much Success!

Jun 18, 2010 07:41 PM #1
Rainmaker
693,237
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

 

Welcome to Active Rain Scott... have fun in the game. Inventory is tight and prices have been heading up since last fall her...just outside Washington DC.

We joined Active Rain last November and have found that the Rainmaker outside blog combined with Localism have worked well for us…. getting us better page placement on Google searches within neighborhoods. Worth checking out. 

It is also a good idea to use a lot of pictures in your post from the area you cover to get and hold people's attention...they shy away from reading blocks of text.

A side benefit of AR is learning from other folks’s social media creativity and making friends for future referrals. Here is a good place to start: Learning  to use Active Rain  

Have great success this year,

Steve and Jan

 

 

 

 

Jun 23, 2010 09:33 AM #2
Rainer
4,328
Scott Smith
Keller Williams Excellence - Towson, MD

Letitia, Thanks for the welcome aboard.  I'm so new, I hadn't even noticed that you had made a comment. :)

Steve and Jan, thanks for the great advice.  I'm determined to master this blogging thing and your ideas really came from contribution to me.

Jul 12, 2010 11:56 PM #3
Rainmaker
435,807
Letitia Stevenson
BHHS Fox & Roach | www.DelawareValleyRE.com - Greenville, DE
Delaware Valley Real Estate, Lic'd in DE, PA & MD

Hi Scott, I would like to invite you to subscribe to my ActiveRain Blog by clicking here Subscribe to Letitia's Blog.

Also, I recommend that you check out the following posts/resources to get you started here on ActiveRain:

  1. ActiveRain Point System
  2. Blogging and Time Management
  3. ActiveRain Guide
  4. ActiveRain Manual
  5. ActiveRain Starter Kit
  6. Getting Started on ActiveRain
  7. ActiveRain University
  8. How to Jazz Up Your Blog
  9. ActiveRain FAQs and Help
  10. ActiveRain Radio
  11. ActiveRain Support Team 
  12. ActiveRain Suggestion Box

All the Best! Letitia

Sep 15, 2010 11:01 PM #4
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Rainer
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Scott Smith

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