Wednesday, April 05, 2006

Increase in Discipline Another Sign Of Bubble Pop

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Wow. The Spring 2006 issue of the Real Estate Bulletin (.pdf) from the California Department of Real Estate, has twice as many pages of disciplinary actions as it did in the Spring issue last year — six full pages! We're talking about revoked licences, restricted licences, suspended licences, public reprovals and indefinite suspensions.

During the boom I asked an agent why there weren't more complaints considering there were so many more agents. He said "Everybody's too busy making money now. Time is money and it costs time to file a complaint. You just wait until things cool off. That's when all hell is going to break loose. When you see the complaints start to increase, that's when the bubble has popped. That's when everybody's going to be fighting over the same piece of meat."

I'm not sure if this is that sign, but it's definitely more disciplinary action in one quarter than we've seen in a long, long time.

-- The Boy in the Big Housing Bubble/Los Angeles and Beyond