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Diva24
2014 Aug 5, 6:58am
the only way potential homebuyers will gain peace-of-mind from their purchase is to either buy on blind faith — which burned millions last time — or gain understanding of reliable valuation techniques to avoid buying overvalued properties in overvalued markets prone to crash. Unfortunately, that’s easier said than done because there are competing methods of valuing houses and housing markets that produce conflicting results.
Is it really that hard to understand that a dilapidated old fixer upper shouldn't cost or isn't worth a million bucks to someone whose income is not even 1/10 that amount?
http://ochousingnews.com/blog/b-reflated-mini-bubble-peak-2016/
Lenders reflated the housing bubble to pass their bad loans to new bagholders. Current forecasts show lenders must complete the task by 2016 before prices peak.
How can you tell whether a market is overvalued, undervalued, or fairly valued? It’s more than an academic concern today because lenders, realtors, and even government officials push average families to buy houses ostensibly to gain the financial benefits of home ownership. Unfortunately, as the housing bubble rudely slapped an entire generation, most potential homebuyers today realize the housing market is volatile and manipulated, and it may not be the investment opportunity it once was.
Realistically, the only way potential homebuyers will gain peace-of-mind from their purchase is to either buy on blind faith — which burned millions last time — or gain understanding of reliable valuation techniques to avoid buying overvalued properties in overvalued markets prone to crash. Unfortunately, that’s easier said than done because there are competing methods of valuing houses and housing markets that produce conflicting results. Further, the NAr constantly bombards potential buyers with plausible sounding bullshit, so between the conflicting results from good analysis combined with the self-serving bullshit from the NAr, most potential homebuyers are left confused and uncertain.
Source: http://ochousingnews.com/blog/b-reflated-mini-bubble-peak-2016/#ixzz39YJbv7aA
#housing