January 27, 2012
Sound bites from the Inman Connect Conference held in January in New York City: State of Real Estate – The Year Ahead, a panel with Margaret Kelly, CEO RE/MAX, Diana Olick, CNBC, Alex Perriello, CEO Realogy
- Does NAR’s numbers revision have impact? No. Trends are still the same, but it does show just how distressed the market was. REO/short sale stats are a higher percentage
- One weather forecast for the nation doesn’t work. The same is true for real estate.
- We are flooded with data, but starved for wisdom. Consumers are looking at D.C, stock market, etc. and have no confidence. They’re going to wait. When there is doubt in the market, people press the pause button.
- We need a clear, concise housing policy from Washington, D.C. The election will force the administration to do something, but there will be no clear housing policy from them.
- Dodd/Frank – if regulators have their way, it will damage housing further.
- Anticipate 2 to 3 years of elevated foreclosures. There has been a giant clogging of the system. The moratoriums created a log jam. In NY state, it takes over 1000 days from notice of default to bank take-back. 12 million people are now underwater. A lot of homeowners are gaming the system. Free rent for 2.5 years – what’s my advantage to do a price reduction! There’s a big problem of entitlement mentality. Foreclosure was once a shameful thing and the homeowner would leave the property spotless. Now, it’s “screw you bank” and they rip everything out.
- . Recovery used to mean getting better – now, it means not getting worse.