Housing Prices Drop, Affordibility Improves, Buyers Return, Media Notices

We need to teach economics better in the country.

Lets do the formula that we all know.

• Speculators drive the housing market up.
• Typical buyers are priced out.
• Some still buy.
• Market hits the top, speculators bail out.
• Prices drop hurting late buyers.
• Foreclosures and inventory make prices drop fast and hard.
• Homes become affordable to typical buyers.
• Buyers return to market.
• Real Estate market finds bottom and comes back up.

Either I am damn smart to be the only one to see this, and I know I am not, or the media is just a herd that is chasing the story of the day.

Check out these headlines.

• Housing affordability on the rise Pasadena Star-News
• Homes are biggest bargain since 2004 CNNMoney.com
• First-time buyers find silver lining in foreclosure cloud Los Angeles Daily News

The story of the day is that housing is again a deal, and affordable, and makes sense to buy or at least look.

So what does this mean to you, the real estate agent?

Expect to see a surge in first time homebuyers coming to look.

These folks may not be ready to buy yet, but they are interested and eager. They have been married a couple of years living in a rental waiting to live the American Dream of owning a house.

This is the demand I was talking about that has been percolating. These folks did not want to buy into a down market but at the first sign of a bounce, even if it is a dead cat bounce, they will be looking.

And some will even be buying.

So get your buyers agent hat on, I bet you will be very busy showing homes in the next month as now the media has recognized that housing is affordable again.

PS This is the bottom I expected after the elections were over. With Obama ahead of Hillary now the media probably thinks he is safe and it is okay to talk up the economy.