For all who have said, or heard someone say "Real Estate Only Goes Up" or "You Can't Lose" or "It Won't Happen Here" or "This Time It Is Different"...etc.
Stolen Shamelessly from Desidude at Ben's Place
"Real Estate News, Part 6 Nov 21 1990
Home prices in California will decline another 5% to 10% in thecontinuation of a “buyer’s strike”, according to Kenneth Rosen,chairman of the Center for Real Estate and Urban Economics at UCBerkeley. Rosen believs a revival will not occur until 1992.
He blames the current real estate slump on the “totally unsound practice”of government and consumers ringing up record debt loads in the 1980s.
[San Francisco Chronicle]With a few exceptions, the real estate market in most U.S. cities isflat. Market values are stagnant and sales volume has slowed.
[SanJose Mercury News]52. Auctioneers advertise exclusive estates in Menlo Park, with minimum bids40% off the current bank appraised value . Custom homesites reflectdiscounts 47% off the current bank appraised value.
[Wall Street Journal]54. With recession looming, would-be buyers ask themselves: Isn’t this a risky time to put all our savings into a home purchase? We end up with no savings, and higher monthly expenses at the worst time imaginable–the start of a national economic downturn.
To counter this, aggressivereal estate marketeers are offering 1990s creative financing: Nothingdown. No closing costs. No transfer taxes. Plus, they’re offering newreverse-lease options that allow you to buy now, but pack a parachute incase you want to bail out later.
[San Jose Mercury News]55. Builder advertises: $60,000 Price Reduction! Originally $485,000. Now$425,000. Sorrento Estates. Buy this weekend, receive a new Dodge Caravan. ]"