I posted that data numbers are objective, however, interpretation is subjective, because isn’t that the case, data will always be interpreted one way or another. Real estate is personal, why else would there be so much emotion attached to it from the sellers wanting someone to fund their retirement to adamant buyers that are waiting for the proverbial ‘other shoe’ to drop. Granted my experience is centered around the Southern California area, and specifically in the Los Angeles area. So I can only discuss what I know. I can say that if you had bought property in 1991 in the Los Angeles area, you experienced a 20-30% decline depending on the area. That’s a 20-30% decline from your purchase price in 1991. Fast forward to 2000-2005, you would’ve realized a gain around or above 100%.
The passing comment I posted was directed at the article from CNN MONEY. As for waiting out the market, being a debt slave, market that’s flattening, moving down, or sinking like a turn of the century English cruise liner, it’s a matter of opinion, honestly, isn’t it? In hindsight from the current market, we can all point back and place a general time frame when the market ‘peaked’. However, there are still people buying, not at the same volume as last year. Everyone’s reasoning is different and timing is relative to every individual. My opinion on the market is that we won’t see the YOY appreciation we saw in the past 3 years (if you want the data numbers, I’m sure there are sites that provide them) relative to each area. I think a huge loss isn’t likely, here’s why, and this is more left brain thinking with human responses rather than right brain with numbers and graphs. Why? The information is readily available (Internet, ZipRealty, Zillow) that anyone can log in and do their own homework, how much did you rely on the internet in 1991 or 1983? Isn’t the speed of information and the large industrial employers different (yes, I’ve read the ‘it’s different this time’ comments) and not something that will change anytime soon? I think I’m about as right as everyone else on this forum and just as wrong. Which is why, I don’t recommend anyone to hold their breath.
