What The Market Will Bear
The Calaveras Enterprise found some property with reduced prices in California. “The property for sale along Highway 26 is unusual in a lot of ways. But it has one feature you can find on some other residential properties in Calaveras County: a ‘price reduced’ sign.”
“That’s because the county is experiencing the same price flattening seen in home markets nationwide, Realtors are saying. ‘I believe it’s a buyer’s market now, and people are not necessarily getting their asking prices,’ Betty Gibbs, who’s selling the Highway 26 property, said.”
“The property has been on the market for more than a year. Originally listed at $1.3 million, its price has been reduced by $550,000.”
“Gibbs said what it’s listed as now, $750,000, is in line with an appraiser’s assessment. And that asking price is firm, as far as the property’s sellers are concerned. ‘But it just depends on how long that ‘for sale’ sign stays up,’ Gibbs said.”
“Economists, realty associations and mortgage lenders acknowledge that while home sales are still high, the market is changing. Although demand for housing isn’t something that’s short-lived, like the ‘irrational exuberance,’ as outgoing Fed Chairman Alan Greenspan called it, surrounding the tech market before its crash in 2001, homes are said to be settling into their actual value.”
“For a property on Highway 4 in Murphys, a cabin and a cottage on 4.8 acres, that means coming down $40,000 on the asking price. It’s already been on the market 203 days. Ariana Walker, owner of the company selling that property, said its long stay on the listings log is due to its price. ‘People expect to sell their homes for more than the market can bear,’ she said.”
Sorry about the technical problems. We’re still in the process of importing the comments and posts from the blogspot blog.
Congratulations!
Hmmmmmmmmm,
It appears som switch has been thrown.
some
Back up! Gotta have my daily bubble fix. Everyone else around me is caught up in the insaity of this bubble. This is the only place to go where rational minds exist!
crisp&cole,
Do you have a link to that Bakerfield article you mentioned?
blogger failure = another sign of where GOOG is headed |
Getstucco,
That occurred to me also.
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Ben -
Its on the front page of the print edition, however, I dont see it on the website: bakersfield.com.
Here’s is the email for this blog; it will be in the profile shortly:
thehousingbubble@gmail.com
Here’s a story from the Fort Myers News Press. According to the “experts,” every day 400 houses are put on the market, but only 100 sell. There is a huge buildup in inventory and folks are beginning to panic at the lack of buyers. They thought things would pick up in January, but they didn’t.
http://tinyurl.com/cjtya
Housing is a sticky, illiquid market, especially now that the buying frenzy is over. With about 25%of the owners being investors, rising rates and declining prices will motivate more rapid price declines. With about 50% of the mortgages being adjustible, I/O, etc , rising rates will motivate owners who can not make payments to sell. All this motivation and declines makes buers withdraw from the market. What the market will bear is a function of ever changing attitudes and motivations.
In the context of Buffett’s oft-cited remark about swimmers and the tide going out this post might also be titled “What The Market Will Bare”.
Murphys is in Alpine County which is one of the poorest counties in California. I can now clearly see the the insanity in R.E. that exists out there where there is no industry or jobs to support these property values. Where are the appraisers and banks to allow the kind of artificial guessing as to what R.E. should be?
I liked the old format better. Easier to read.
Phoenix
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i don’t say too much. data speaks louder than words. the level of delusion is unprecedented here in PHX. more and more SUPPLY adding projects are in the works…. I predict that supply could move close to 50,000 by the early summer. Place your bets.. Hey can we do this at hedgestreet.com??? Not plugging it, but they are the only place i know where u can bet on weird stuff.
Just for your info. Murphys is in Calaveras not Alpine county. I am very familiar with the area, as my family has owned a cabin there since 1967. Prices are being driven up by people from the San Francisco Bay Area buying vacation and retirement properties, and is therefore not dependent on local incomes. I frankly think the area will weather the real estate bubble burst better than most areas of California.