A “Healthy Correction” In Massachusetts
The Massachusetts realtors have their November numbers out. “November sales of single family homes in Massachusetts fell nearly 13 percent compared to a year earlier, the 8th consecutive month of year-over-year sales declines, the Massachusetts Association of Realtors reported. The median selling price slipped to $340,000, down 4 percent from $354,000 n November 2005.”
“The continued decline in sales, and growth in the number of homes on the market suggests the slumping housing market is still seeking a bottom. The inventory of single-family homes for sale is up 25 percent from November 2005.”
“‘Both the detached single-family home and condo markets have been experiencing a healthy correction,’ said David Wluka, president of the Massachusetts Association of Realtors. ‘With home prices leveling, interest rates remaining low, inventory still plentiful and more sellers accepting market-based pricing, Bay State homebuyers have a special window of opportunity right now,’ Wluka stated. ‘We just don’t know how long the window will stay open.’”
The Boston Business Journal. “Echoing their optimistic message from last month, the Massachusetts Association of Realtors said Thursday that the state’s housing market may be stabilizing, despite data that reveals a double-digit decline in home sales when compared to the same period a year ago.”
“Last month’s statewide inventory of 35,254 listed homes was 25 percent higher than November 2005. Statewide condominium sales last month slipped 13.6 percent over sales in November 2005.”
From the talking points. “Most sellers are setting reasonable prices based on this market rather than the unusual spiking prices of the past five years. Last month’s sales total was lowest November volume since 1995, when 3,190 homes were sold.”
“The number of condos for sale is up 37% from 13,024 units last November to 17,851 in November 2006. This represents 12.7 months of supply, up from 8 months in November 2005.”
The Salem News. “The median price of a single-family home in Essex County fell to $350,000 last month from $373,000 in November 2005, a drop of about 6.2 percent, according to the Warren Group.”
“Single-family home sales were down by 13.5 percent from November 2005 levels, their eighth double-digit percentage drop this year. Sales have now dropped from year-before levels in 25 of the last 28 months. The 4,130 homes sold in November 2006 marked the lowest sales figure for a November time period since 1992.”
“The state’s median single-family home sale price also decreased in November to $315,000 from $337,000 in November 2005. The median home sale price has now dropped in eight of the last nine months and is down more than 13 percent from the $364,000 peak registered in June 2005.”
“Alan Pasnik, data analyst for The Warren Group for more than two decades, said the cities and towns of Essex County ‘look as bad as everybody else.’ ‘We are on a downward trend here,’ he said. ‘Housing prices got too high to be supported by people’s income levels. There had to be an adjustment; it is happening now.’”
“Pasnik said in the past six years the prices of housing doubled across the state while income levels increased at modest levels. He said because of this, the current trends in the market will continue into the new year and could continue for at least another 12 months.”
“In the meantime, Pasnik said, the market is ripe for those looking to buy a home, calling it a ‘buyer’s market.’ And, in contrast, he said those looking to sell their homes should consider holding out until the market improves. ‘If you don’t have to sell your house, don’t,’ he said.”
“Though it might be painful for sellers, the real estate market has grown steadily for 13 years without a price correction, Timothy Warren said. That’s a long time to go, he added. By comparison, the stock market has gone through several cycles.”
“The greatest danger in the current market, Warren said, is the potential for loss for the people who have been using the equity in their homes as a savings account, taking out loans for cars or college pinned to the rising value of their properties.”
Note: the blue links at the ‘talking points’ link are PDF files.
Thanks for the ‘talking points,’ they are hilarious.
“The continued decline in sales, and growth in the number of homes on the market suggests the slumping housing market is still seeking a bottom. The inventory of single-family homes for sale is up 25 percent from November 2005.”
There you go — more evidence that a soft landing is right around the corner…
OT
GetStucco
LOL your deadpan humor keeps me laughing.
Sorry about the chicken. I agree with your comment about wanton killing.
‘With home prices leveling, interest rates remaining low, inventory still plentiful and more sellers accepting market-based pricing, Bay State homebuyers have a special window of opportunity right now,’ Wluka stated. ‘We just don’t know how long the window will stay open.’”
What is Wluka smoking? Where in the numbers does it show prices leveling? Looks to me like a race to the bottom.
The only window open is the 2nd story one used by the FB to jump onto his white pickett fence (purchased with a heloc). Mr Wluka, the time to buy will be when you and your kind are in the bread line.
He is smoking some crack maybe. The window will be open for 10 years with prices not much higher 10 years from now.
Agree not much higher. Make that ‘no higher’. Possibly a good deal lower.
No.
Not if Helicopter Ben cranks even more the printing presses and the boys at the FED totally debase this already worhtless piece of paper. You are lucky that the rest of the world, mostly Asia is soo damn stupid. That’s what saves us all in the west. But you are losing in the process all your industrial base. People are still speculating in real estate because they sense that hyperinflation is around the corner.
The window will stay open for some time to any GFs who care to jump out in order to test the soft landing theory on the ground below…
Window Staying Open?
I think a Tornado or Hurricane is about to come through and rip the whole roof off this thing. Then having to deal with FEMA and the insurance companies, the roof will probably stay off for about 10 years.
their window of opportunity? what to jump out to escape the debt and walls closing in?
I can buy anything I want in MA at 20% off 05 peak- healthy?
…as long as you pay median price or above so you don’t skew the Sound Bite.
Yeah, but as soon as the window closes then everybody will be priced out and there won’t be any more new buyers, right? Then at that point prices will have to fall again, no? As a buyer, why not wait until then? Why buy just before the “window closes”? Doesn’t that mean you’re buying at a peak?
This idiot should be praying that the window stays wide open for a long time so there is a steady stream of buyers and he can keep making his commission, rather than insinuating that it’s about to shut forever.
Your right, this is just another variation of the ‘buy now or be priced out forever’ crap.
these realtors are just saleman. the only thing that matters is affordability.
Wouldn’t you love to hear David Wluka’s ideas about how an unhealthy correction would look?
You all want some amusement? WF “stole” 1K from Casey, ignoring the fact, of course that he owes them 80 large.
Wells Fargo Stole $1000 From Me
… or that’s how it feels at least.
I woke up this morning later than planned but it’s OK because I woke up motivated for once ready to take on life and start organizing/reassessing my mess.
Then I login to my Wells Fargo personal checking account and see a debit of $1,099 pending. I don’t recognize the description so I call to see what is going on.
I find out that because my WF credit line is 83 days past due they made an “offset” from my personal account to catchup the credit line.
“You are allowed to do that?” I asked. They said yes according to the terms of the loan that I signed.
“But I need that money to live on! My landlord is going cash the check today and it will bounce now. Can’t we reverse the offset or appeal it somehow??” I asked. The rep checked with the supervisor and said they cannot reverse it.
That’s just great! I knew I should have closed the account to prevent autodrafts and stuff like this from draining the little money we had.
I know I don’t have much ground to complain since I owe WF over $65K $83,702.01 but can’t I have a little control over my own account? I need to pay rent and buy groceries before I can make loan payments.
I am very frustrated. Going down to the branch right now to close my account and take out any cash I have left. I am not going to let WF or anyone to just take out money as they please.
I am confused. You previously posted that you were going to buy a house and were rather frugal and now this post. Whats up?
That’s Casey! Not me!
how dare they touch “his” money? wtf
this sniviling little turd needs a good beating
why does he have to pay his landlord he can go live in one of his “investment properties”
I recognize the sniveling tone; the “why me” attitude. Definately Casey.
Good idea.
I suggest everyone else do the same while they still can.
I think Casey may find out WF can call in their loan as well. Sounds like he hasn’t read the fine print.
It would be a blessing. Sounded like an emotional purchase entirely. The one and only house …. none other …..
I don’t think he’s read much aside from Kiyosaki and Trump.
Worst of all it is clear he did not bother to actually read any of the Kiyosaki material even though he spoke with Kiyosaki himself. Where is the positive cash flow? Wells Fargo has it and is much more likely to continue operating. This guy Casey should have an escort and special helmet for protection at all times. Reading that is like watching salted snails bubble.
Hilarious. I bet he’s evicted before April.
how much longer until Casey is living out of a shopping cart. If he can manage to park it in Wi-Fi range and keep his laptop charged up maybe we will be kept up to date on the details of his slide.
He really is full of entitlement. Does he think his creditors care if he has groceries? Wait until the collection agencies get hold of him. They will tell him to pimp his wife to make good on his debt. Reality is a cold slap in the face isn’t it Casey?
This guy is too dumb for words, and there are millions of him out there, bleeding to death in their properties.
“I am not going to let WF or anyone to just take out money as they please” — Casey Serin.
Only Casey himself was allowed to just take out as much money as he pleased. OOps, now it’s over, waaanhnhnh (baby cry noise).
Bay State homebuyers have a special window of opportunity right now,’ Wluka stated. ‘We just don’t know how long the window will stay open.’”
This is so special I cant stop laughing. They are using the infomercial close. Wonder whats in that window.
I was listening to the radio today here in Boston and they reported the Mass. Assoc. of Realtors figures and then read that B.S. about how it’s a great time to buy as long as this window is open. This is self-serving junk, trying to lure buyers into an extremely unstable market, in which, if they bought now, they would be poised for enormous loss in value. And this was reported as news.
Many realtors are caught in the market with spec or flip properties themselves.
They are then making public media comments without disclosure of their real estate positions or job solvency risk.
Actually, since they are on commission only, any comment from them regarding timing of the market to buy is suspect and inherently a conflict.
“Many realtors are caught in the market with spec or flip properties themselves.”
Like David Lereah with his Florida condos? How about a bully pulpit in the MSM to use as a base of operations for manufacturing GFs? Talk about a moral hazard problem…
Welcome to America.
Earlier someone linked Diana Orlick’s Realty Check CNBC column
http://www.cnbc.com/id/16314121
Here’s her view of a journalist’s job…
“One user wrote that all I do is interview experts and then pretend I know what I’m talking about. Well guess what, that’s what journalists do…”
No independent research or analysis, no contradictory opinions.
She conludes with an even more amazing statement:
“I confess, I do own a house, so there’s my bias; I’d like it to continue to appreciate. If you don’t buy what I’m reporting, that’s your choice.”
Well at least she’s honest about her rotten motives and lack of ethics.
“If you don’t buy what I’m reporting, that’s your choice.”
- Not qualified to understand what the experts she quotes are talking about? Check.
- Has an ulterior motive to put a positive spin on all stories about real estate? Check.
- Doesn’t mind pretending to know what she is talking about in order to deceive her audience into believing that she is a knowledgable expert? Check.
Yep — I would believe everything she says as the truth without questioning it.
Hey Penn-
Did ya catch the clip from the Salem Evening News…
Pretty much sums up Essex county.
The guy are sayin’ this is a buyer’s market is on dope.
The shit you see for $450k is a friggin’ joke. 100 year old bungalows or old colonials some boomer picked up for $45k back in ‘72.
Want that $450k starter home? Best be pullin’ in $100k with wifey in a school system with tenure @ $80k.
I think median household income in the area is like $65/70k.
Nothin’ computes here.
“David Lereah, chief economist for the Realtors, predicted price declines would continue in December and probably for the early part of 2007. He said these were necessary adjustments that were luring unsuspecting victims back into the market.”
I guess that’s fudgeable based on the definition of early. Of course his mistake was in not using ‘7 instead of 2007.
http://money.cnn.com/magazines/fortune/fortune_archive/2006/12/25/8396764/index.htm?postversion=2006121805
Looks like some MSM types are lurking in the weeds on Ben’s blog
my six strategies for surviving the re bust
1)keep renting
2)keep saving
3)don’t buy
4)dont buy
6) dont buy
5)don’t buy
7) enjoy the stored hoard of popcorn.
Buy gold, silver, platinum, palladium and hide it!
Buy anything that the filthy government cannot tax to death.
That’s a real problem for real estate. The taxman.
From the link above, I’m relieved to see that my area (DFW) is expected to appreciate +4% in 2006 and again in 2007. And as pretty as the maps are, the scale only goes down to -8%. (Hmmm… Is there nothing to worry about, or are they saving several colors just in case?
)
I’m a long time New Englander who left because of the economy. The folks of Massachusetts are still in denial that home prices could continue to fall.
I suspect the Median price is kept high as the more wealthy buy homes ABOVE the Median price - keeping the Median Price from taking a huge dive. Remember, folks in Healthcare and Financial Services are doing very well in Massachusetts.
I’ve been preaching the dangers of Real Estate for 3 years and folks of Massachusetts just don’t buy it -YET.
The prime employers for Massachusetts have vanished in the last 5-10 years (Polariod, Gillette, John Hancock and more).
I predict the down turn in Boston will be much worse than Citizens of Massachusetts can imagine - Lets face in most folks lacked the imagination to see how high prices could go and even fewer can imagine how low prices will go!
Hey BK-
As a former Mazzhole-ite (hey, I’m one at the moment-lol), go buy a copy of Howie Carr’s book on the Bulger brothers and how totally corrupt the state is.
It will make you feel better about your move.