11/23: Where does the housing industry stand?

Moderated by Rick Badie

In three years, metro Atlanta’s average home price dropped to $161,996 — a slide of nearly $55,000. There’s no quick recovery foreseen. Below, our guest columnists give their perspective on the local housing industry.

Realtor Marilyn Meacham says it’s a buyer’s market. Real estate guru Jim Grissett explains how national policy got us here and how it must change.

What do you think about the housing market today and in the future?

10 comments Add your comment

Steve

November 24th, 2011
4:52 am

The Art of the Shady Land Deal@11:01

You’re right. I wasn’t trying to say that everything would be fine after the next election. My point was NOTHING was going to be done until the next election. No matter who wins and I suspect it will be Obama I find the fact politicians are fine with people treading water for another 16 months disappointing.

People can only hang on for so long, so I suspect we will have more Foreclosures not less.

Tariq

November 23rd, 2011
8:49 pm

Too many people, like the subprime idiots who moved into the beautiful house next to mine and then allowed it to collapse into complete disrepair, lacked the maturity and financial wherewithal to be homeowners. Long as there’s the foreclosure glut overhang the Atlanta market will be in the crapper – I’m guessing about two more years.

☻☺

November 23rd, 2011
4:27 pm

Since the current economic train wreck occurred on Mr. Bush’sObama’s watch, lest we forget, I guess we can say the Bush Obama Days.

There you go.

Fixed that little mistake for you.

Corey

November 23rd, 2011
4:08 pm

My mother lived through the Great Depression, and she said it was referred to as the Hoover Days. Since the current economic train wreck occurred on Mr. Bush’s watch, lest we forget, I guess we can say the Bush Days.

Santa Ana

November 23rd, 2011
3:55 pm

LOL…to read some of the blogs…some apparently blame the President for this mess. Guess he told all the construction workers and companies to build, build, build. Having absolutely no required standards for a person to become a carpenter is the culprit. Many don’t excel at school and then go into business building homes. Thousands upon thousands of carpenters in the state building homes until there simply were far too many homes to maintain the market prices. Yep, blame the politicians but don’t look nationally but at the state and local levels.

Santa Ana

November 23rd, 2011
3:51 pm

We need a good ol’ California Santa Ana wind to blow through the state and bring some serious wild fires to burn down the excess housing. Simply too many homes per capita. No way for improvement in the housing industry unless we gain a lot of population or get rid of the excess housing. Supply & Demand….Lots of homes for the # of buyers. That simple!

The Art of the Shady Land Deal (Gwinnett Developer: Autobiography of a Hustler)

November 23rd, 2011
11:21 am

Steve

November 22nd, 2011
8:00 pm

“The real estate market has been nose diving and continues to nose dive. The current attitude of “wait until the next election” means waiting until the Spring of 2013 until they take office. There is no change coming in the unemployment rate for the foreseeable future. No jobs = no house buyers.”

The Spring of 2013 is EXTREMELY optimistic considering the state of the field of Republican Presidential candidates.

Considering the sky-high unemployment rate and the crappy state of the economy, Obama should already have one foot OUT the door of the White House, but just a good once over of the GOP field makes me think that we’d probably better push those plans for a recovery back even farther to like 2017.

This election should be a gimme for the GOP, but yet it seems as they are trying their absolute darnest to screw this up and give the economically-adverse Obama a second term (Remember FDR’s second-term?- look up the GREAT DEPRESSION and see how a big-government liberal President, as opposed to the big government conservative Bush, can turn a recession into a depression by being hostile to business).

The Art of the Shady Land Deal (Gwinnett Developer: Autobiography of a Hustler)

November 23rd, 2011
11:01 am

11/23: “Where does the housing industry stand?”

The housing industry is still standing?

That’s news to me, because I pretty much thought that it was six feet under.

Mountain Man

November 23rd, 2011
8:21 am

Since you are a Broker, then you know that in almost every case the 6% commission is split between the seller’s agent and the buyer’s agent. The seller’s agent has all the costs with marketing the house – pictures, advertising, staging. The buyer’s agent has the time and expense of showing houses to potential buyers – researching (which you say is done a lot now by the buyer – not always), arranging showings, driving clients around in your car to house showings. All of these cost money and are not guaranteed to have any payback. Factor in desk fees which have to be paid regardless of whether a single sale is made. Then the agent splits his/her commission with the broker.

My wife is a real estate agent who had to find another job to keep the money coming in – houses aren’t selling right now unless they have “foreclosure” in their description. Listing a house at full price is a losing deal – who wants to pay full price when you can usually find one down the street at half the price.

The housing market is suffering from a glut of foreclosures on the market and it will not rebound until the inventory of those go down. I would estimate in about ten years. If you have the money (cash), or can get a loan (20% down 800 credit score), yes, it is a buyer’s market. Unfortunately, a lot of people who would like to buy a house are now shut out of the market.

Steve

November 22nd, 2011
8:00 pm

The real estate market has been nose diving and continues to nose dive. The current attitude of “wait until the next election” means waiting until the Spring of 2013 until they take office. There is no change coming in the unemployment rate for the foreseeable future. No jobs = no house buyers. If anything the Government may strip Mortgage deductions on non-principal residences to raise revenues.

Marilyn Meacham must do comedy on the weekends if she thinks she lacks inventory. One big change that should of happened in this crisis is that the Realtor commission rate structure should have been reduced to reflect the fact the consumers are doing 90% of the research. The Realtor collusion to hold the commission at 6+% is an outrage. I know a little about this since I hold a RE Brokers license in 3 States.

I have never seen a commercial where a Real Estate company announced it was a bad time to buy.