Real Estate prices are continuing a downward trend. We have four months of declines in pricing as reported by the Case-Schiller Index http://tinyurl.com/392m8cv Moody’s also issued a report with similar data.
The link takes you to the PDF file that shows the graphs Case-Schiller publishes. You can see that in 1998 there is a steep incline showing property appreciation like nothing we have ever seen. The rate of appreciation far exceeds inflation rate http://tinyurl.com/35zfmu
I’ll just mention that this inflation graph is a little busy and comes from a doom and gloom web site. The chart however is very easy to read, and you can see that inflation did stay about 6% and below during the period of massive Real Estate asset appreciation.
What this means is that the Case-Schiller Index, and the Moody’s Report are completely frivolous. These are shoddy attempts to remain relevant. The Financial Markets desperately want you to continue to follow along, but there is nothing predictive in the Index, or reports.
My opinion is that Real Estate prices will continue to decline. We are currently at about 2003, or 2004 pricing with some pockets of higher prices. The problem is that housing units have become cheaper to build. Commercial space is way over built. The glut in Real Estate started to grow 10 years ago and is still an indicator of economic health.
This is going to be a tough cycle to break. In the meant time we’ll continue to explore the differences between price, and value.
About David Losh
In 1984 I got my Real Estate license and worked in a small company called Advance Properties. The owner was extremely interested in Real Estate, building, and land development. Most of his work was concentrated North of Seattle. Since the 1970s I had worked for Real Estate agents in Seattle as a contractor, mostly preparing properties for rent, and sale.
After a few years my skill level increased considerably concerning land use, building code, and development practices. Escrow, and lending offices were housed at the Advance Properties building so it was easy to get involved in all aspects of Real Estate. It was very much a family owned, and operated business.
Over the years my Real Estate license has been at a variety of Real Estate companies, and offices. Nothing compares to those early years, or that sense of family. Real Estate has gotten to be corporate owned.
My hope with this blog is to share with you some of the things I've learned. If you have Real Estate needs, or want contractor help, I refer freely to what best suits you. If you should choose to work with me you'll find a great resource.
My Real Estate license is at Skyline Properties in Northgate. Skyline is a locally owned company that is a desk fee office. There is a wide variety of diverse agents. It helps me with some of the other projects that I have, and mentoring that I do, to be able to work with people from other cultures.
Here in Seattle we are close to Vancouver BC and are the gateway to China. Boeing has a great trade relationship with China, as does Microsoft have with all of Asia. We are a culturally diverse community, and it helps me to be invlolved.
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