Saturday, January 1, 2011

Has the real estate market hit Bottom?

What bottom to the real estate market here in central Oregon. The corpse hasn't hit the bottom of the well yet and it may never get there with banks and realtors colluding to artificial keep local real estate prices from crashing.

Over on OPB a juicy nugget or two makes one think we aren't even close to being clear of this mess.

Kathy Ragsdale is the CEO of the Central Oregon Association of Realtors.
She says currently about 10 percent of the listings in Central Oregon are bank owned. But Ragsdale says a lot of the big banks aren’t even listing some houses for fear of further pushing down prices.

Kathy Ragsdale: “I know that the National Association of Realtors is working with many of the large banks to try and figure out a way to introduce those properties into the market in a way that won’t flood the market with properties that need to sell quickly or are lower than what really market value should be.”

I realize the banks are protecting the bottom line and realtors protecting their commission but aren't they playing with price fixing charges as well?

And of course the governments don't want the real estate prices to free fall either. They'll have a hard time taxing people the imaginary assessed value of $250,000 when the property can't even be sold for $99,000.

Irrationally Exuberance still has a firm grip on the wheel and the pedal pushed hard against the firewall.

Until next time.

Wednesday, December 22, 2010

More Speed, More Splat

Everyone has probably seen the safety billboard on 3rd Street.

There needs to be a couple of similar billboards put up near the county offices and City Hall.

 More Businesses, More Revenue.