Frank Talk from Fred

Posted by Dave Fratello on Saturday, November 3rd, 2007 at 3:13pm.

Another realtors' conference, another downbeat assessment – this time from a huge name in California RE.

Fred Sands, who almost needs no introduction, told a meeting of the California Assn. of Realtors (see LA Times story) that the housing market is now "pathetic" and about to get worse:
The longer the up cycle, the more excess there is, and the worse it is for what follows.
Speaking of excesses:
We saw 25-year-old guys buying $3m houses. Someone who makes $100,000 a year can't afford a $2m house, but that's what's been going on. The idea that everyone is supposed to own a home is baloney.
Sands urged listing agents to cut prices to "get in front of the crisis." Another realtor on the panel, Alan Long of Sotheby's, urged agents to quit sellers who won't cut prices:
Let go of the fear [that] another agent will take over and sell it – they won't
Sands also suggested that realtors who have not been in the business too long and aren't doing well now ought to find new work.

When Long said agents could help goose sales by telling buyers about the opportunities presented by the downturn, Sands jumped in:
But if you go too far, you lose credibility. People need to know what's happening.
Indeed.
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