Real Estate – Things are likely to get worse before they get better

Peter Morici, an economist at the University of Maryland, said reduced inventory of unsold houses may mean “frustrated buyers are removing their homes from the market.” Morici said that major price adjustments will be needed to bring the market back into balance.

“The speculative frenzy of recent years is causing a major adjustment, and the happy talk of Realtors is prolonging the process,” Morici said. “The absence of realistic analysis about the extent of overvaluation is characteristic in an industry that sees nothing but an upward progression for values, but houses like any other asset can be overpriced. . . . Things are likely to get worse before they get better.”
*Note – I would have personally modified Mr. Morici’s last line above, to read:  As far as San Diego and most of the other ‘bubble’ markets, Things are likely to get much, much worse before they get better.                     downtown San Diego real estate agent