Below is real advice from a real estate agent on why it is a good time to buy. And I'm of course providing the reality as to why this is complete BS. If you are a buyer, you will hear such things every day. And it needs to stop.
Real Estate agent:
"Looks like you have conveniently "forgot" about all the sales in Crystal Cove with long time owners making some nice profits." (fill in any neighborhood for "Crystal Cove")
Thanks to the comments on this blog, we have no shortage of stupid comments from real estate agents. Problem is that some buyers actually believe this BS.
So, here is the reason why this real estate agent statement is BS: Whether or not to buy depends on the price of the home and what you think will happen to the value of the home in the next year, as compared to the price of renting. No doubt about this. You don't want to pay $3 million for something that will be worth $2 million only 12 months later. This is happening. Right now.
So, back to the stupid real estate agent comment. It just doesn't matter if the sellers have equity and are making "profits" or not. Say someone bought in 2000. Likely they would be able to sell for a profit even now so long as they didn't take out second and third mortgages. That doesn't mean YOU should buy. In fact, it has no logical connection whatsoever. There is no reasonable connection to the economic analysis a buyer must make. It truly is BS. By the way, the sunset is fantastic tonight. ;)