Housing Market In “State Of Flux” As Buyers Hold Out
The Providence Journal reports from Rhode Island. “Rhode Island’s sales of single-family houses are showing signs of improvement, but not so for the condominium market, according to a report. Condo prices in November fell nearly 22 percent, to $205,500, down from $262,500 in November 2005, according to The Warren Group.”
“Condo prices have now declined for four straight months, and sales in November fell 6.4 percent, to 2,349 units. Condo sales have ‘fluctuated wildly,’ falling in 6 out of the last 11 months, the Warren Group reported.”
“‘Rhode Island’s housing market is still in a state of flux,’ said CEO Timothy Warren Jr. ‘As we are seeing in Massachusetts and Connecticut, unit sales and median sale prices are still under pressure as buyers hold out for better deals in a changing marketplace.’”
“The biggest price change was in Bristol County, where the median price of a condo in November fell 66.5 percent, to $165,000, compared with November 2005. Price changes, however, may appear more dramatic because of the small number of sale units. For example, the price decline in Bristol in November was based on the sale of just eight condos.”
“Providence condo prices also declined in November, with the median price down 25 percent, to $194,000, compared with November 2005. Single-family house sales during the first 11 months of the year fell in all five Rhode Island counties, and the median sale price fell in four of the five counties.”
The Boston Globe from Massachusetts. “A growing number of homeowners and builders, unable to sell their properties the conventional way, are turning to heart -thumping, adrenaline -pumping auctions. The sluggish housing market has translated into a surge in business for auctioneers.”
“‘Buyers and sellers are both turning to the auction method, and we foresee this trend continuing to increase,’ said William Sheridan, president of the National Auctioneers Association.”
“But Kim Sandler, president of the North Shore Association of Realtors, said she doesn’t see the auction trend taking off in Boston’s northern suburbs. While auctions may appeal to investors looking for a bargain, Sandler said, they’re often not ideal for local residents looking to buy a home because such sales have no contingencies. If the high bidder defaults for any reason, he or she forfeits the deposit.”
“‘In this area, an auction is synonymous with desperation,’ added Sandler. ‘In a slow market, house hunters are looking for a good buy. At an auction, they’re looking for a steal.’”
“In recent months, homeowners in Nahant and Boxford have felt the bitter sting of disappointment when their homes failed to command bids that met their minimum prices. The high bid for a sprawling, 5,200-square-foot Boxford home was $460,000, half the $900,000 minimum value the homeowners had placed on it.”
“In Nahant, a single bid of $830,000 was offered and rejected as too low; the homeowners had been hoping to get something closer to their original $1.25 million asking price.”
“Auctioneer Jerome Manning said he turns away a lot of potential sellers because they have unrealistic notions about how much their home is worth. ‘I don’t take jobs if the seller expects me to do magic that their broker couldn’t,’ said Manning. ‘Why would I be so arrogant as to think I could sell a home for a price their broker couldn’t get?’”
“Harvey Goldberg of Rowley, has adopted a different philosophy. He’s offering a ‘real estate deal like no other’ on eBay. His ad invites potential buyers to buy his four-bedroom home with custom kitchen, basement media center, and ‘nifty new granite mailbox post’ for $1.75 million — more than double the appraised value.”
“‘You will be helping not only pay off our mortgage and bills but also pay for my children’s college educations and assisted living for my mother…. Does that not make you feel great???? Well if it does… we are ready to deal!’ the ad states.”
“He posted the ad the second week of December as a joke, hoping someone might be in a giving mood. No such luck. ‘We thought we were going to get kicked out of doing it, because it was tongue-in-cheek, but if someone offers the right price, my wife and I will absolutely sell it,’ Goldberg said. ‘Don’t get me wrong; we love this house. But we love money more.’”
For the record, I am not holding out. I *know* that my employer is having extreme difficulty hiring into my job market. In the past I’ve seen home prices drop 40% for the house across the street from my folks. Other employeers have started relocations out of state due to the home prices.
I’m on the sidelines spectating for at least the next 18 months. Maybe longer, maybe not for reasons that aren’t financial. Don’t worry, I won’t buy as long as prices are unaffordable. But I’ve seen the press releases of companies relocating. Most of the relocations will occur this summer. I’m sure more will be announced. Thus I *know* prices will be lower in 18 months.
A lot lower. 
Bearmaster has done an excellent job on her blog showing Redondo beach home sale prices. I cannot help notice that homes at above $1.4 million have stopped selling… but there is a lot of inventory above that level.
This market will correct. If by no other means than relocations forcing sales.
Will I be the solo post on this thread? I’m happy to see the blog’s database problems are fixed.
Got popcorn?
Neil
Layoffs are coming…
From NYC, Time inc. lays off 289, adding to the layoffs in Dec. and another 500 expected to go later this year.
The TImes is also laying off staff.
Rumors of more layoffs in print media/publishing in Manhattan.
So much for Goldilocks, layoffs and rumors of more to come, something not heard much in the last few years.
The high bid for a sprawling, 5,200-square-foot Boxford home was $460,000, half the $900,000 minimum value the homeowners had placed on it.”
hehehe…how’s that for a rude fookin’ awakening.
50% value declines in Mazzholeland, anyone?????????????
You heard it first here on Ben’s blog 2 years ago.
Let’s see a LOT more of this!
A lot more.
Which is why I’m glad OCrenter is blogging on how foreclosures are taking 10 months to appear as REOs in his area. While I live north of him… it gives one an idea of the glacial speed of a real estate decline.
Got popcorn?
Neil
Until now, Neil’s comments accounted for 50% of comments on this thread. Server problem or lack of interest as the MSM is finally acknowledging what the blog has been saying all along? Is Rhode Island not sexy anymore? -
Yay! The Mass Exodus of nearly half a million college-educated workers and skilled laborers (a collective “f*** you” to all the vulgar real estate extortionists) has finally brought the first(?) of the 50% decreases in home values in the money-licker state!
Now maybe the sucker segment of the working class will finally know that the majority of the rich DID NOT get there through “hard work”!
We’ve got to bring back the gold and silver standard. The best weapon against the “elite” criminals that print our paper-money, will be a major anti-consumerism movement. Artificially inflated prices have only served to make ALL PRODUCTS undesirable to a lot of us. Their price-gouging has had the effect of making a lot of us associate the purchase of consumer products with SUFFERING. Think about it. When workers are forced to work more than one full-time job to afford just the bare necessities (shelter and food)– trust me, we come to value our time over useless material things. Price gougers have made some of us FOREVER IMMUNE TO ANY AND ALL MARKETING CAMPAIGNS. Because of their avarice, we don’t want to buy ANYTHING any more.