Wednesday, September 27, 2006

The Housing Bubble is Not Bursting, Now Buy My Property!

Having trouble selling your home? Well, here's a new sales tactic. Write a letter to the editor proclaiming there is no busting housing bubble, then announce that you're trying to sell your property and that you're "ready to deal." Hey, everybody knows your name in Merced, right? Submitted to the Merced Sun-Star:

Editor: For over a year now we have heard and read stories about the real estate bubble being in danger of bursting. The facts are that the real estate business in Merced has been pretty slow for over a year now.

Anyone who has studied real estate trends knows that there is no bubble to burst and what we are seeing now is nothing unusual. It is the nature of the real estate business to have up swings and down swings and the down side are often referred to as adjustments.

In the last 12 months or so there have been adjustments that have moved the market from a sellers market to a buyers market. Many properties have been reduced in price 15 percent or more since a year ago. What was a seller's market has turned into a buyer's market.

The economy is healthy with the Dow over 11,000 for quite some time. The Federal Reserve has not raised the prime interest rate for the last few sessions. Real estate loan rates are extremely low and the lenders have lots of ways to do creative financing.

Merced is a growing community and there is no reason not to invest in real estate. I have been buying real estate since I used my first VA loan in 1968 and I have always made money. The payments that sound expensive today will be a bargain in 10 years.

Real estate is an important industry in Merced. There are plenty of wonderful properties for sale and lots of Realtors and lenders to chose from. Don't wait for some mythical bubble to burst. The market is right for buyers right now.

No, I am not a Realtor or lender. I am a seller who has a prime property and I am ready to deal. I believe in the value of Merced property and I hope you do too.


sercasey said...

Hehe... that's interesting sales tactic.

I'm going more for the "I am Facing Foreclosure" tactic to sell my 2 houses in sacramento. Its not really a tactic, its the truth.

I'm over my head and upside down on the loan. Doing a shortsale on both right now with the help of another investor and realtor.

We'll see how it works...

Lander said...

Or Plan B (21st Century Version):
Blog about your property problems.

Welcome to SL Casey.

Now is all of this real? My blogosphere-hoax-alarm rang pretty loudly when I read your blog.

Anonymous said...

the letter writer from Merced says:

>> Many properties have been reduced in price 15 percent or more since a year ago. <<

>> I am a seller who has a prime property and I am ready to deal. <<

Sounds like he's reduced his price by 15% and now it's time to try 20%.

Karl Marx Brothers said...

I have two words for that idiot's delusion: Kubler-Ross

Karl Marx Brothers

ocrenter said...

#1. so why is this guy selling if real estate is doing so well in Merced?

#2. Casey, my hoax radar went off just like lander's as well. So far I'm still dealing with these questions:
--you are 4 payments behind on each property, but we don't see any pre-foreclosures yet.
--you're selling the modesto as well as the two sacramento properties, but I was only able to find the highland one on the MLS.
--with short sales you will be faced with taxes on the difference between your purchase price and your sale price. is that worth it?

Anonymous said...

delusional guy said: "I am a seller who has a prime property and I am ready to deal. I believe in the value of Merced property and I hope you do too."

Wow. This guy is such a humanitarian! He believes in the value of Merced properties, therefore, he is willing to help you get into the "game" by selling you some of his prime property. This only comes in at #2 in the top 10 ultimate sacrifices though. :)

Anonymous said...

gotta love this stuff.irony is not dead.dude, adjust your price,and potential buyers MAY adjust their attitude about buying.please hold your breath while waiting,purple is pretty.

Anonymous said...

Merced will soon be MerDEAD. They are pinning all hopes on the sucess of the new UC MERDEAD, which will end up being a bust like Cal State Bakersfield.

Spacebär said...

Before anyone can benefit from your story, sercasey, he/she has to be sure that it is true. I have 7 initial questions for you. How about:
1. What attorneys have you consulted (first and last name please)?
2. Where did you go to school and what was your major?
3. What was your full time job that you quit in January?
4. How much were you earning in the full time job you quit in January?
5. I understand that you are married, did your wife cosign any loan documents?
6. Are you listed as the sole owner of all the properties?
7. What languages do you speak, I understand that you grew up in Uzbekistan?
Trust, but verify.

Anonymous said...

The problem with Merced is that the median household income is $37k and the median housing price is $295k, making it the 4th least affordable housing market (78% overvalued) in the US. Add to that at least a dozen housing developments under construction with an average price over 400k, the halt of long-distance commuters from the Bay Area and a total falloff in speculators and you have a recipe for disaster.

Anonymous said...

Folks, let me point out that precipitous declines in property values have not occurred. Weakness, yes, but no bubble bursting.

Kind of gets me that those on the bubble side are acting as if a bursting has occurred. It simply hasn't happened, and if it doesn't happen fairly soon, odds are it won't happen.

rocklin renter said...


Stop looking at Zillow and start pounding the pavement. If you want to know what is really going on, get out there and ask some of these home sellers how long they have been on the market, at what price, and how many SERIOUS inquires they have gotten. ASK THE SELLER NOT THE AGENT.

THEN, go to the magic Zillownator and plug in their home. I think you may just change your tune.

Things are much much worse than they seem.

And this is just the beginning.........

Anonymous said...

This blog is for "Folks", prices are weakening in Sacramento by the hour. Sacramento is considered one of the ground zero housing bust markets in the nation.

Sacramento median home price falls another $3,800 last week
Median price now $24K under August 2005 price!! Yes that is this last week.

If you just bought a flip property and you are trying to rant on this blog go "FOLK" yourself.

JR said...

Anon 1:47,

Very nicely stated.

I don't see how these "ostriches" can keep their heads buried in the sand. I walk about 10-20 blocks 4-5 nights a week. It is not difficult to notice the serious price reductions on many homes. In the last 9 months, surveying 25 + listings, ALL have reduced their prices, most over 10%. One property has sold (19% reduction). 6 have withdrawn their listings. 3 have shown up on notice of default lists.

Anon 7:44, I hope you pull your head out, because if you don't you will get seriously oxygen deficient.