Home Pricing: Denial is not a River in Africa

A colleague emailed me this link and I think it's worth posting: http://www.msnbc.msn.com/id/27648884/from/ET/. Denial of the reality of depreciation in housing values is happening all over the US, and there is some of that on Bainbridge Island too. Any scan of housing inventory and you will note some prices that seem really out of whack.

What I don't like about this piece is the tone it sets of "us vs. them" between real estate professionals and home sellers, as if the real estate professionals have cornered the market on reality while homeowners are living in la-la land. I have more respect for my clients. While the reality is not pretty, I find that my clients really do get what's going on. Some are benefitting from the decline in home values: first time homebuyers, investors, and people who sold in a higher market and who have been in a holding pattern watching for the right time to act and make a pruchase. For those planning to make a move from one house to another, they are selling low, but buying low, too. It is the people who are selling who have watched their asset decline who are really hurting. Taking an "us vs. them" approach is just not my style, and you'll never hear it from me. I'm more of a "rip off the bandaid" type of person. If there's bad news, I'll just tell you. Better to be up front and figure out how best to deal with the bad news for the greatest benefit or conversely, for the least amount of pain.

I'll try to post something more uplifting later.