Jim the Realtor said recently, “A happy wife is a happy life”.

Hmmmm. Steve, do you want to be right, or do you want to be happy?

Sorry, gotta go now or risk being late to get her morning Starbucks fix. And we all know what happens when Kris gets testy.

“Not just agents, but the many related jobs from companies that support the industry such as escrow, title, lenders, inspectors etc.etc.”

Exactly. That’s why having a healthy market (number of transactions, not price escalation) would be a good thing. My sister-in-law is an escrow agent in Corona. Needless-to-say, things are slow for her.

Of course, there will be continued pressure on reducing the relatively high transaction costs associated with home buying [see exhibit A regarding all of the people employed by the industry], which is probably another reason for the “wound-tight” (and getting wound-tighter) realtors. That “moving of the cheese” thing. It continues to happens in my business (patent attorney), too, and I don’t like it, either.

Good luck, guys. I will be reading.

The market got ahead of itself for many of the reasons we have all discussed and is adjusting as it should be in accordance with basic supply and demand principles. I fully support your proposition that this shift occur sooner rather then later so we can get back to a stabilized market. From all indications, it appears that San Diego, which, from a timing standpoint led the way on the upside is also leading the other way. Together with outside dynamics such as the recent mortgage issues I do believe the resolution of market imbalances has accelerated here.

Thanks, again for your comments. While we challenge each other on occasion, please don’t misinterpret that for any lack of respect.

You are ALWAYS welcome to post here. Period.

I have to say that I think Steve’s remarks were unnecessarily testy and that he misinterpreted your message (sorry, honey), which was on target. You are so correct that far too many sellers are still pricing for 2005. You are also correct, in my opinion (Steve’s too, by the way, because we have discussed this ad nauseum) that our recovery is not going to be a magical return to soaring prices but a more steady and gradual return to appreciating prices.

I only wish we wielded the power to “persuade to ‘price-to-sell’”. We transmit, but too few are receiving right now and choosing instead to live out their listing periods in a state of denial. More of our clients are starting to “get it”, though, so I must assume that this is indicative of the seller-at-large.

Steve’s defensiveness I suspect was born out of frustration (that, and the need for sleep). It is only a little less fun to be a listing agent right now than it is a seller. Couple that with the fact that the agent community has increasingly become the public’s favorite punching bag of late (most recently having been joined by the lending community), and I see a lot of wound-tight Realtors. You were not at all out of line.

Steve – Don’t make me reinstate a blogging curfew! Now, apologize to Smithers.

I did not mean to insult. I just meant that the RE industry makes its money off transactions: No transactions = no money; transactions = good; no transactions = bad, etc.

I suppose the incremental price difference is meaningful to some extent, but sales volume is what counts. I’m not sure what you mean about agents making someone buy or sell a home. Where did that come from? In hindsight, I did make an analogy of RE industry to car salesman. Please accept my apologies (at least I did not compare you with lawyers!).

I was trying to respond to the pointed comment made by Marketforces (your comment came in just before mine) that the RE industry is always promoting home buying no matter what the market. My view is that this should neither surprise, nor bother him (or her). That is how RE industry makes a living, puts kids through college, buys clothes and cars and pays taxes, and he should not expect them to suddenly say, “Hey, we are shutting down for a couple of years; See you in 2009″. That is all I was trying to say.

I wish the RE industry all the best in getting sales transactions going again. This will be good for the California economy as a whole, not just RE industry. For each perspective seller that you and Kris can persuade to “price-to-sell” instead of “price-to-sit”, you are doing me (a CA taxpayer) a great service. Same with every buyer that you convince to “meet the seller halfway” on.

This RE bubble may be initially compelling to gawk at, but once you figure out how it is harming us all, you want it over with ASAP. It will be over (IMO) once there is a “normal” volume of sales transactions. The lowered prices will be good for you, since more people can qualify to buy homes again.

I hope I am still welcome to post here.