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SittingBull

U.s. - What The Downside Looks Like

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Here's a mind-boggling story from Grand Rapids, Michigan.

Buyers and sellers having difficulty in overpriced housing market

I think it gives us some insight on several levels:

1) the incredible pain people will put themselves through to avoid unloading properties for anything less than what they think they're worth - as opposed to what the market thinks they're worth.

2) the "putrefacation factor" that sets in during a down market - all that unsold inventory piling up starts to stink.

This was a particularly sad quote:

He says he can't even get buyers to look at his house, despite dropping the price below appraised value and assessed value.

"I feel like it's not very attractive. That's how you feel after you've had a house for sale for a year-and-a-half," Flikkema adds.

I'm sure some of our wise HPC'ers would have some helpful advice for him. ;)

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Since posting the story above, I found the following psycho-profiling of a RE downturn. I think the poor seller in Grand Rapids is clearly in the denial stage, but it's already been 18 months and he's got four more stages to go. Poor bugger.

Five stages in the acceptance of a real estate bubble are:

Denial – Initial reaction to any loss in RE value, that is often accompanied by feelings of isolation and loss.

Anger – Occurs when the homeowner can no longer deny his or her potential loss or loss.

Bargaining – May involve praying, seeking alternative treatments, or promising better behavior in exchange for less wealth.

Depression – Involves a period of grieving for the loss; the situation is sad and the person has the right to be depressed.

Acceptance – Involves a coming to terms with the situation without feelings of hostility; allows time for facing reality in a constructive way.

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Since posting the story above, I found the following psycho-profiling of a RE downturn.  I think the poor seller in Grand Rapids is clearly in the denial stage, but it's already been 18 months and he's got four more stages to go. Poor bugger.

SB, I think there should be a panic stage in there somewhere as well

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I think Katrina and gas prices are already having a big effect on public sentiment in the States as Dick Cheney found out the hard way

Thanks for that video clip Riser :lol:

You might be right about Katrina. I was in contact with two of my American clients today and both of them, one in Michigan and one in Nevada, were completely up to their ears dealing with fallout from the disaster. It was surprising, because one is a small non-profit and the other is a mega-corporation, and both are far from the Gulf. Also, I sent messages to about six American clients over the past week and only one has responded. I think Katrina might have a much wider impact than economists are currently estimating.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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