Seattle Bubble Forum Archive

What great advice from a Real Estate Professional.

I'm glad her professional code of conduct ensures that she will give unbiased, ethical advice to investors.

I hear that the "smart money" rushes into assets that are slumping and forecast to continue underperforming for years to come, at the very peak of a national bubble. You know, instead of into bonds, stocks, and other investments that are actually, you know, productive.

And yes, Ms. Sinick, you're really hot on the trail of the truth. The only reason the market in many regions of the country, soon to be followed by the PNW, is swirling the bowl is because of media scares

Ms. Sinick - Is it a safe bet to assume that you follow your own professional advice, and are fully invested, leveraged, and doubled-down on real estate? I would certainly hope that you're walking the walk. After all, this is the time to get out in front of the curve and win big!

"Real estate and the economy are hyper-local and should be treated as such."

Repeat after me - real estate is hyper-local, the economy is hyper-local, credit markets are hyper-local (oh wait...).

"Ms. Sinick - Is it a safe bet to assume that you follow your own professional advice, and are fully invested, leveraged, and doubled-down on real estate? I would certainly hope that you're walking the walk."

Actually, she probably is. One amusing facet of this bubble is that most RE types drank the Kool-Aid right along with their customers, so the RE types suffer the full consequences of their own "investment" advice. Karma is a bitch, isn't it?

"Real estate and the economy are hyper-local and should be treated as such."

Real estate may be local, and the *desire* to buy those houses on the eastside may also be strong. Also, jobs are local, and it's true that the job scene is doing well in Seattle. It's also doing well in San Diego BTW, but let's not get into that old debate..

BUT, the credit markets ARE NOT LOCAL! Please, Ms Real Estate agent, go and talk to a mortgage broker about how things are in the credit markets. Try and get a 0% down interest only for that 550K Issaquah home. Good luck! If you *can* get it, you can't afford the rate.

The loose credit standards of the past half a decade brought forward many buyers who would otherwise be buying right now. This inflated prices due to the increased demand. So we have fewer people who actually are looking to buy (housing ownership at record highs) and even if you *do* want to buy it's harder to get the financing.

I don't get why this is so hard to understand. Actually, I do get why. It's not simple. It requires some thought, research, and an open mind. I guess it's hard to accept something to be true when your livelihood depends on it NOT being true.

too bad you'll be ahead of a curve going in the wrong direction...

On KIRO 710 AM during the 6pm news last night they featured a story on local real estate, interviewing an agent who was chastising the local media for scaring buyers away with national stories about how bad things are (all RE is local, right?). He gave the standard reasons why we're different than the rest of the country such as Boeing, Microsoft, etc. I wanted to reach through the radio and throttle the guy. Let's think for a moment, shall we? Where are the highest-paid Boeing employees living now (the ones who actually can afford houses here)? CHICAGO!!!

Oh, and he also mentioned that RE never goes down here, so if you're planning on owning your house for two years or more, you'll be just fine so get out there and buy, buy BUY!

But the best part of what he said is that since buyers are holding off purchasing right now, there will be a HUGE pent-up demand for houses when these buyers can't wait any longer and jump into the market during next spring, so you better buy NOW and beat the rush.