"The number of real estate and mortgage industry professionals is declining after five years of growth."
"Employment in the real estate and mortgage industries peaked at 504,800 in February, according to the Bureau of Labor Statistics. In June employment was at 503,100, a noteworthy decline given that the sector gained jobs at a rapid pace for most of 2001 through 2005."
"In May of 2001, essentially when jobs started gaining, 290,800 people were employed in the two industries."
"Peter Morici, economist and professor at the University of Maryland’s Robert H. Smith School of Business, views the downsizing of employment as a good development."
“When things shake out it is going to be the better sales men and women that will stay,” he says. “They are the ones who have built a reputation over time.” Source: Reuters, Julie Haviv (09/17/06)
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My wife is friends with a couple that live in Seattle. The husband quit his six figure job last year and the wife also quit her job. They both said that they could make lots of $$ in real estate and they got their licenses. I wonder how well they will be doing for the rest of 2006 and into 2007?
ReplyDeletehttp://www.washingtonpost.com/wp-dyn/content/article/2006/09/18/AR2006091801090.html?nav=hcmoduletmv
ReplyDeleteLoudoun Probing Builder Who Left Homes Unfinished
G&M Homes never finished the houses, several homeowners who contracted with the company, say they soon learned that Grimm couldn't deliver what he promised.
G&M's business was a casualty of the downturn in the real estate market.
"He couldn't move anything. He started selling undeveloped lots at fire-sale prices," Thomson said. "Several subcontractors would not agree to work, and he just couldn't finish the projects."
fogcutter said:
ReplyDelete"The premise of paying twice what a property is worth is that real estate ALWAYS goes up, at least in this location, etc., etc.."
Fogcutter, first off a property is worth what it sells for ... period. Factors can change and it can go down or up, but if you wanted to buy a certain property last year for $X and there were 5 other people willing to pay $X for it, then that is what it was worth at a minimum. Secondly, unless you are talking about flippers or wannabe flippers (which I think a lot of bubbleheads truely are), most people aren't buying a home because they think its value will "always go up". Most people are buying a home for the amenities it provides including shelter over one's head and the social standing that comes with being a homeonwer vs. a renter. (There's no denying that in general society holds renters in lower regard than homeowners except in exceptional cases such as "just moved to town", "am a college student", etc.) Additionally, people bought in order to lock in known payments over the long haul. No one can predict the future, so the best option for people who want stability (and aren't willing to gamble like flippers and wannabe flippers) is to lock in known payments. Again, you're assumption that most people bought thinking they'd make a killing on buying is flat out wrong. Most people bought to have a home. Longterm, of course, values do indeed rise though. But, not as much as a stock or as any investment. A home is not an investment but an expense.
"Fogcutter, first off a property is worth what it sells for ... period. Factors can change and it can go down or up, but if you wanted to buy a certain property last year for $X and there were 5 other people willing to pay $X for it, then that is what it was worth at a minimum."
ReplyDeleteAt a minimum? So, it is never worth less than what people are willing to pay for it, but it could be worth MORE. How absurd.
Come on, Lance, you can do better than that.
I hope all RE agents become unemployed. The majority of them are no better than child molesters and many of them are in fact child molesters. A very large increase in the number of realtor suicides would be a wonderful thing. I hope to see them leaping from tall bridges and offices every single day of the week until there are none left.
ReplyDeleteSurvey: Private sector pay should keep rising
ReplyDeleteWages should accelerate modestly in coming months, helped by healthy employment climate, survey says.
September 19 2006: 8:11 AM EDT
WASHINGTON (Reuters) -- U.S. private sector wage growth should continue to accelerate in the months ahead on the back of a healthy employment climate, according to a survey released Tuesday.
The Bureau of National Affairs Inc., a Washington, D.C.-based news publisher, said its revised ....
http://money.cnn.com/2006/09/19/news/economy/wages_survey.reut/index.htm?cnn=yes
VA, When I get bored at work, I imagine you as a bored woman with time on her hands... and I imagine stopping by your place for "lunch" together and filling our time with far more interesting pursuits than blogging... perhaps we should chat sometime.
ReplyDeleteand now deflation
ReplyDelete"Outside of energy and food, core inflation was even better behaved, falling by 0.4 percent after a 0.3 percent decline in July. It marked the first back-to-back declines in core inflation in more than three years."
http://biz.yahoo.com/ap/060919/economy.html?.v=6
Oh come on, what better way to deal with boredom?
ReplyDelete(I'll retain my fantasy regardless; thank you) ;-)
anon asked:
ReplyDelete"At a minimum? So, it is never worth less than what people are willing to pay for it, but it could be worth MORE. How absurd."
So, you haven't heard of bidding situations?
anon said:
ReplyDelete"Anonymous said...
and now deflation
"Outside of energy and food, core inflation was even better behaved, falling by 0.4 percent after a 0.3 percent decline in July. It marked the first back-to-back declines in core inflation in more than three years.""
Actually, 0.4% less inflation is not deflation ... just less inflation ... less than half of 1 percent less inflation ...
Lance said:
ReplyDelete"anon asked:
"At a minimum? So, it is never worth less than what people are willing to pay for it, but it could be worth MORE. How absurd."
So, you haven't heard of bidding situations? "
So, you haven't heard of people offering cars, trips to Hawaii, closing costs, condo fees for a year, etc.?
My $0.02.
“The housing boom ended more than a year ago, but sellers are having a tough time accepting that fact, says David Lereah, chief economist at the National Association of Realtors.
ReplyDeleteHahahaha
The nerve of this guy to show his face.
“The housing boom ended more than a year ago, but sellers are having a tough time accepting that fact, says David Lereah, chief economist at the National Association of Realtors.
ReplyDeleteDidn't he write some cheesey book last year about the Long -Term housing boom?
Irving Fryer 1929 before the Crash D. Lereah 2005 at the peak.
This guy was wrong big time and he still paid.
The Real Bob,
ReplyDeleteFor the most part I have stopped bothering to respond to Lance. His arguments are typically weak and very poorly stated. Furthermore, he takes every salient pro-housing point ever made on this blog and claims that it was either what he was trying to say or was a direct conclusion of his ramblings.
Get a big container of salt and read away...
My $0.02.
A decrease in inflation is called "disinflation".
ReplyDeleteNikki said...
ReplyDelete"A decrease in inflation is called "disinflation"."
Nikki, you're REAL GOOD at distorting the meaning of words, aren't you? What was that discussion you had with Va_Investor where rather than admit you were wrong you changed the meaning of things you'd said? You gotta love it, if you can't say "deflation" since prices have NOT dropped, then you mislead by saying "disinflation" for where you have less INflation than you had previously!!! What manipulation of words (and ideas) will we think of next! LOL
Lance,
ReplyDeleteWhat was distorted here? Did you even bother to look up the definition of the word disinflation before attacking Nikki?
here's a link for you: http://www.investorwords.com/1487/disinflation.html
My $0.02.
Definition of Disinflation: Disinflation occurs when the inflation rate is declining over time. Deflation occurs when the inflation rate becomes negative.
ReplyDeletePoor Lance... Nikki was right, you were not, as usual.
B747
my2cents asked:
ReplyDelete"Lance,
What was distorted here?"
Simple ... the fact that right after someone makes the statement that deflation is coming and going to wipe out everyone and everything, Nikki jumps in with a name for the fact that the rate of inflation went down last month by "0.4 percent". The name sounds earily similar to deflation ... although all it is saying is that instead of 4% inflation like last month, the rate when down by 0.4% bringing the inflation rate down to 3.984% ... Whoody-doo! What a change! I agree that the first person to even bring up the subject was manipulating to begin with ... But Nikki's justifying it with a name just adds to the manipulation ...
no Bob, I'm not worried. 4% inflation is still 4% per year that I owe on my mortgage in real terms ... and more importantly, I am in no danger of inflation coming in hard and my having to then buy at vastly inflated prices ... Like I've said before, I'm fairly conservative when it comes to money .. I don't day trade either with stocks or with real estate. I bought my house to be a home. And I know what "the most it could cost me to live in my home for the next 30+ years will be." Can you say the same?
ReplyDelete"most people aren't buying a home because they think its value will "always go up". Most people are buying a home for the amenities it provides including shelter over one's head...Again, you're assumption that most people bought thinking they'd make a killing on buying is flat out wrong."
ReplyDeleteHmmmmm??? And I suppose that is why all those homes are just sitting on the market- because people just want shelter, amenities and do not want to make a killing.
anon asked:
ReplyDelete"Hmmmmm??? And I suppose that is why all those homes are just sitting on the market- because people just want shelter, amenities and do not want to make a killing."
Maybe they're the kind of people more willing to give a hand up than give a hand out?
Lance said...
ReplyDelete"So, you haven't heard of bidding situations?"
Bidding wars? Where?