A new construction development in Albemarle just reduced prices on a few remaining townhomes in increments of $25k and ~$40k. The same models sold six months ago for significantly more than new models are currently being sold for* – in some cases $20-$40k more than new ones’ asking prices. In effect, all surrounding, similar properties have been theoretically devalued.
*I hate ending a sentence with a preposition, but sometimes it’s necessary.
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It’s not a realtors job to create an appreciating market, it’s our job to get the best for our clients when they make a transaction. Six months ago they had to pay that much in order to get the house they wanted. This was the clients choice, and not ours.
Investing in real estate always carries some risk, though over the long term it has been shown to do very well. The potentials for short term loss should always be taken into account.
Athol –
I don’t disagree, but I do know that the Realtor and Builder will be blamed, for lack of a better target.
Realtor’s shouldn’t be blamed (I will however reserve judgement on builders). I don’t think it should have been rocket science to know that the housing market was overheated.
The only people to be blamed are the buyers. No one twisted their arms. They are adults they made the decisions not to wait for a cool down.
Further, if they were planning on owning the home the traditional “at least ten years” I don’t think they’ll lose too much money (although I hope homes values don’t appreciate at such obscene rates as they have previously).
However if they were “flippers” then they absolutely deserve to get hosed. They were fueling the bubble- and thus part of the problem.
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