Will prices go down another 20%?
Hello welcome to Todd Miller TV. Super quick update today we’re in that week between Christmas and New Year’s and it’s kinda casual around here. I’ve heard something twice in the last couple months form different buyers. So I wanted to address it because I think other people have the same thought maybe. And what I’ve heard is that, this is the quote: “I’ve heard prices are gonna go down in 20 and 30% over the next 6 months so, anything I buy today, I need to but it 20/30% under market value to protect myself from the downside. So of the 2 people that this was relayed to me from, one of them ended up buying a whole bunch or properties after we did some time explaining what was actually going on in the Real Estate market. You know, when we have/we list the property to get multiple offers on it right away, that’s no indication that we have a lot of downside. The prices certainly aren’t gonna go down, atleast all these other people think that/or buying houses don’t think that. And then the other person just low balled everything, he didn’t get anything and got frustrated and left. They just,from what I was told, I didn’t personally work with them, another agent of the company worked with them, they low balled everything, didn’t get anything and they just complained and left. So they weren’t educated which was really the problem. So, if you are a buyer, and you have that belief, this is what I’m gonna relay to you: Couple things, 1 chief economist for Freddie Mac came out and said: “Nationwide, they expect a maximum of 1 to 2% nationally of downside.” That’s what they’re predicting for the 1st half of the year, but that’s nationally, that’s an aggregate. Different markets/Markets are still going up, some are going down some are staying flat. Our market is staying flat but what we’re saying is, the by-sides are picking up like crazy. When we list an REO, a bank owned home, and it immediately gets multiple offers, that tells me that’s still a strong demand. There’s not much more downside or values are off 70 to 80%. There’s not much more room to go down. Investors are buying houses like crazy. So, whatever market you’re buying in you need to pay attention to that. Now, here’s my answer to you as a consumer and to you as an agent, this is what I think you need to/how you need to handle this, or what you need to do if this is what you believe. If you really believe that prices are gonna go down 20 to 30% over the next 6 months, then just wait 6 more months to buy. I mean, why try to buy something? No one’s gonna sell below market value. They’re disappearing faster than they can come on the market. So wait 6 months and then come back 6 months and if prices are down 20 to 30%, you can buy, and if they’re not, well you can either buy or wait if you still believe this. I mean, you know, so many people are going on based on a generic news report or a report that’s continually being reported for the last 2 years, or something based on nonsense data, you know. If we have the same number of foreclosures we had 4 years ago and prices went down 30% 4 years ago, that doesn’t mean that same thing’s gonna happen because the price decline already happens. It’s not like everytime there’s foreclosures prices go down. There were foreclosure in 2004, 2005, 2006 prices went up. Just because there’s foreclosures prices are gonna down. So anyway, that was my update, I just wanted to address that objection of prices are gonna go down 20 to 30%. The people with cash don’t think so, the buyers don’t think so, the investors don’t think so, and you know, So anyway, that’s my update and hope everyone has a great new year and hope to see you on the next video. Thanks!