Real Estate Always Goes Up

Except when it doesn't.

The bottom line: Most homeowners won't be able to sell for what they might have at the peak in 2005 when median prices were 30 percent higher than they are now. "People need to understand that the market has gone back to 2004 and 2003 prices," says Bob Memoli, a Pasco County real estate agent. "If you don't price that way, it's just not going to move."

Soon enough pricing will be back to 2002 levels Bob. Just you wait and see. My question to Bob and all the other realtors is why did they lie in 2005 and say buy now or be priced out forever? Remember 2005 and the frenzy. People lining up overnight to get 1st crack at a housing development. Realtors and mortgage brokers making $250K a year (and spending $260K of that). Good times right Bobby?

Just to get the magnitude of the destruction Bob caused, imagine a young couple circa 2005 going to Bob. He tells them they have to buy something, anything, even if they can't afford it. Otherwise they will be priced out forever. So the couple puts down $5K, their whole savings. They buy a $300K house. They get a ninja loan of some sort. Bob gets his $9K commission as their buying agent. Now 2 years later their house is worth $230K. Their loan is resetting. They can't afford it. They also can't afford to maintain their house or do any repairs. Their $5K is long gone. They owe $70K more than their house is worth. They are constantly arguing with each other about money. Their choice is keep doing this until they no longer can or walk away and destroy their credit.

Ahhh yes living the "American Dream" of home ownership.

Thanks Bob. You're a champ.