A few years ago, everybody assumed the value of a home would keep going up, some more than others. In some areas, home prices went up 40 or 50 percent in a just a few short years.

I have a few comments about that:

1. what goes up goes down.
2. Lose 20 pounds on a crash diet, eat one donut and gain back 25 pounds.
3. my favorite—“the sky is falling” What really made the values go up? Was it reality or hype? I am concerned that prices are inflated and no area will be left unhurt when they tumble. Yes, New York will be no exception to the rule regardless of what the realtors say.The housing market is slowing for new and existing home, builders are running into trouble and slashing sale prices as the cost of building increases and it is becoming harder and more expensive to borrow mortgage money.

All this and the media hype, is bringing the real estate market to a halt in some places — a screeching halt. There is nothing to do but wait. Remember, last August the real estate market did the same thing and we were in a holding pattern through the rest of the year! If June is the stop time and we have to wait until January, there will be many people out of jobs and in trouble in the real estate industry. Not to say, investors and sellers will also be going down. Yes, I am concerned for my colleagues and my clients. Be leery of who you do business with and what you pay for a house.Prices are still high, sellers are becoming more desperate to sell and the sharks are floating to the top of the sea.

Be wise.

Dale Siegel