Wednesday, July 27, 2005

Words of Wisdom from the Property Grunt

The Property Grunt is a self-described "soldier in the trenches of the Manhatan real estate war". Reacting to the June National Association of Realtors (NAR) numbers showing an all-time high in June for existing home sales, but also noting the creep in mortgage rates, the Grunt states:

"All the Grunt knows is that this a sign of the impending bust. Those of you who are first time investors eager to invest into real estate, the Grunt's recommendation is to act with extremem caution. Do not be pushed around by fast talking brokers who keep telling you that the market is only going to go up and this is the time to buy before interest rates kicks up. And even if there is a bubble that Manhattan will be unfazed. The reality is that no one knows how bad the correction will be. Unless there is a dire need to find a home because of tax or personal reasons, you should just treat real estate like a night at Scores. Look but don't touch. "

In a follow-up post the Grunt then notes:

"On a side note the Grunt recently proclaimed that the record sale of homes in June was another indication of the imminent correction. I would also add that the rapid rate of sales being closed is also indicative of the current state of mind of personnel in the real estate industry. From real estate brokers, mortgage broker, lawyers to title companies, last June’s record sales just show how concerned they are about the looming correction and they are doing everything in their power to tie loose ends. This is akin to an after Christmas sale when the stores need to clear out their inventory before for the spring. Bottomline, people know the party is about to end so they are heading to the open bar for one last blowout. So Grunt still stresses that people treat real estate like a night at Scores. Look but don’t touch. But if you find a deal that makes sense well then go for it."


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