The market has created something different than in the late 70's early 80's. That market was interest rates and money issues....lack of money for lending. This market may be lack of money too, but created by lending options that created a false sense of security and affordability. We also know that deception was also a lending problem.
Many look at the neighborhoods with foreclosed home and see the devaluation of other homes as a bi-product of the foreclosures. This may have some impact on pricing but these are depressed properties and can not be considered like the normal residential property. The foreclosed homes are not usually in the same condition of repair so making a price comparison is difficult but buyers and agents try this approach all the time.
The real reason the values are dropping is more of supply and demand. Over supply of homes creates more pressure on price which interprets to lower values. The fewer homes available and a higher demand for the homes available because of fewer homes with more buyers...higher price per home. New construction offers buyers a real opportunity as well. The market has crossed al sectors.
This particular market has also created budgetary issues for municipalities, less taxes are being paid. We compounded issues created with this market.
This market offers unique opportunities for sellers and buyers along with investors. Sellers may sell lower but they also are going to purchase at a lower price and regain the value on a higher priced home when the market turns. Buyers are going to get great bargains in this market. Investors can find some real deals with a little patience and due diligence.
This market offers some real opportunity when we understand and know the market.
How do you use this data to improve your production in this market.
Got the reserved parking space this time... I think.
Motivating people is hard to do in this market. Laying out the potential gain is the best way to do it. Helping them understand the little that they will lose pales in comparison to what they will gain on the way up.
It's going to be interesting this spring when property tax appeals are heard in the cities/townships. I think I'll take a seat and watch...perhaps bring the popcorn.