It’s Better To Slash Prices Now Rather Than Later
The Gazette reports from Colorado. “Colorado Springs’ tepid housing market needs a nationwide mortgage mess like a homeowner with a leaky roof needs a rainstorm. ‘There’s going to be more inventory coming on the market,’ predicted Joe Clement, owner of Re/Max Properties in Colorado Springs. ‘It will affect appraisals. It’s going to affect prices.’”
“An owner who’s been in a house for a couple of years and has little or no equity could lose money, he said. That’s a good reason some homeowners should think twice before putting up a for-sale sign. If you don’t need to sell, keep your house off the market, some experts say.”
“‘I think we’re going to see a little bit of price reduction,’ said Sharon Roshek of The Roshek Group in Woodland Park. ‘Those people who don’t really have to sell, they should take their house off the market because they won’t like the downward pressure.’”
The Santa Fe New Mexican. “Pilar West has been getting a couple of calls per day from people who have one thing on their mind. ‘Will you help me rent my house?’ is their plea.”
“The inventory of homes on the market through June 2007 was up 29 percent compared to June 2006, according to Sotheby’s International Realty State of the Market report. ‘Using the number of homes for sale and how many have sold in a certain period of time, we can calculate an absorption rate of 393 days,’ the report said.”
“At The Management Group, ‘we’ve had a huge increase in the last three months from people who own a house here and want to rent it,’ said James Dominick, the agency’s qualifying broker. ‘A big part of them are on the sales market and are not moving.’”
“The problem is, Dominick said, ‘we can only handle so many in a week. We’re at a point where agents are looking at two or three a day, which is all they can handle.’”
“John Barker of Barker Management said his agency has just started getting more-than-normal calls from homeowners whose homes are up for sale but not selling.’There are a lot more places for rent now. There’s a lot of competition out there, and the consumer is much more price sensitive,’ he said.”
“Barker has also been receiving calls from people in Florida and other states where the real-estate market has dropped sharply and who own Santa Fe property. ‘In Florida, it seems that nothing has sold for months,’ Barker said. ‘They’re really scared’ that the same thing could happen in Santa Fe. ‘When they ask if they should sell, I tell them not to. I think Santa Fe is solid.’”
“Marg Veneklasen of Veneklasen Property Management said the sales of higher price ranges of homes have slowed, in part because ‘nobody has to sell and nobody has to buy.’ That is, rather than bringing down the sales price of a second or third home in Santa Fe, owners prefer to rent it, thinking prices will be better next year, she explained. ”
The East Valley Tribune from Arizona. “A couple of weeks ago, Chandler homeowners Gary and Debbie Meltzer decided to slash the asking price for their house by nearly $100,000. The four-bedroom home had been for sale since March, they had received little interest and the housing market was still deteriorating.”
“The couple knew they would have to gradually drop the price anyway, just like the rest of the sellers in their area. So, with the even slower holiday season fast approaching, they decided to beat their competition to it.”
“‘I feel like by spring break, our house may even be worth less,’ Debbie Meltzer said.”
“It’s better to slash prices now rather than later, said Mike Balzotti, VP at The Equitable Real Estate Co. in Scottsdale. ‘You don’t want to be chasing the market down,’ he said.”
“After the dramatic price cut, their asking price is now $388,000, compared with two nearby homes that are listed at $419,000 and $498,000. Still, they continue to wait for calls. The Meltzer’s realize that the market has been bad for many people, but it’s still been disheartening, Gary Meltzer said. ‘We didn’t expect it to be as difficult as it is,’ he said.”
The Arizona Daily Star. “‘Now is the ideal time to buy because we are seeing prices lower than they have been in a long time,’ said John Strobeck, owner of the Tucson based Bright Future Business Consultants. ‘They won’t stay as low as they are now. … I would say that within a year we will see prices inch back upward.’”
“Noy Kelly, a real estate agent in the Tucson area, agrees that this is an opportune time to buy a home. ‘We are in an area where economically it makes more sense to have homes become lower in value pricewise so people can still afford them,’ Kelly said.”
“Strobeck said the decrease in prices makes perfect sense. ‘We see prices being pushed downward because demand is low,’ he said. ‘It is low because everyone bought homes in 2005 and at that time, investors came into the market and pushed prices way up. What we are doing now is adjusting back to where we should be.’”
The Las Vegas Business Press from Nevada. “Las Vegas’ vertical high-life suffered vertigo in the second quarter as consumer confidence dropped from its high-point two years ago, reports Applied Analysis.”
“‘Current market conditions, a lack of newly announced projects and the cancellation of those proposals with unrealistic development plans will ultimately help the luxury condominium market in the long run,’ said principal Brian Gordon. ‘The market remains in the midst of a rebalancing from an overheated demand profile to a skeptical consumer perception.’”
“Nearly 56.4 percent of the luxury condo market — about 58,461 units worth — remain in the planning or proposed stage, while another 3,877 units have been suspended. Meanwhile, 5,253 units or 14.7 percent of all projects have been canceled.”
“Many more developments appear dormant, neither active nor outright canceled.”
“Nevertheless, there were 14,149 units under construction in the second quarter, most of which have been presold. Downtown, meanwhile, has 854 units being built. ‘We believe that end users will ultimately dictate demand within the luxury condo sector,’ Gordon said.”
The Review Journal from Nevada. “In today’s skittish lending environment, worsened by the subprime mortgage crunch, consumers are left with diminishing options for loan packages. What’s available today may be gone tomorrow, said said Chris Biaggi, president of All Western Mortgage in Las Vegas.”
“Someone who qualified for a $500,000 home last week may only qualify for a $400,000 home this week as lenders tighten credit requirements. Sharp increases in foreclosures and nonperforming loans have caused the mortgage industry to become extremely conservative and eliminate the more aggressive loan programs, Biaggi said.”
“‘In my 20 years in the business, I have never seen the mortgage industry so scared and hyper-reactive,’ he said. ‘We seem to be looking for ways to decline loans rather than approve them. We seem to be losing products on a daily basis.’”
“‘Everybody hears the gloom and doom, but not this part of it, that loan packages they were qualified for in the past are no longer available,’ Biaggi said. ‘So to sit and wait as a consumer or potential home buyer may not be in your best interest any longer. That program that could put you in a home might not be here in a month.’”
“Carlos Moranchel used a 90 percent loan-to-value stated income loan to get into a larger home in July. He put 10 percent down on a $350,000 home in The Orchards subdivision near Sunrise Mountain and took out a five-year option adjustable-rate mortgage at about 7 percent.”
“‘That loan’s pretty much gone now,’ Robin Camacho of Direct Access Lending said. ‘You’ve got to have strong assets and reserves to get it. Carlos has reserves and he put 10 percent down.’”
“Moranchel, with his wife and four daughters went from three bedrooms to four and doubled the size to 2,300 square feet.”
“The property manager from Los Angeles took a second job as a parking valet to make ends meet.”
“‘I personally think it’s well worth the effort,’ Moranchel said. ‘Look at what I have now. A big house, a big yard. It’s a sacrifice. In all honesty, anybody who comes to Vegas can accomplish the same thing, but they have to put their heart into it.’”
“The property manager from Los Angeles took a second job as a parking valet to make ends meet.”
“‘I personally think it’s well worth the effort,’ Moranchel said. ‘Look at what I have now. A big house, a big yard. It’s a sacrifice. In all honesty, anybody who comes to Vegas can accomplish the same thing, but they have to put their heart into it.’”
-_______________________________________
BAHAHHAAHAHAHHAHAHAHA
Sounds like mission accomplished to me, oh here are my keys now get my car…
This guy is so clueless its not even funny. I have lived all over the country and now having been in Vegas for about 10 months(job transfer from LA)I can honestly say I would never buy real estate in Vegas, I just dont see the value in it. The way things are developing this place will be a vast wasteland in 10 years. The population here is the most uneducated, classless bunch of people I have ever seen, I cant wait to leave(18-24 months).
Say what you want about LA but at least the weather is great and there are things to do besides gambling. I can not stand to be outside in Vegas at least until mid October, it is like an oven.
Lastly, I cant wait to tell my landlord that I am not renewing my lease. Yeah, I know it sounds a little mean but I deserve a little fun too.
We spent 18 months living in LV. I agree with your comment that the population is a “classless bunch”, and this includes the professionals as well as the unwashed masses.
Isn’t Vegas mostly California and NY/NJ expats?
Hey, Las Vegas detractors, may I actually supply you with Facts, and then you can voice your unsubstatiated opinions.
Las Vegas Blvd (The Strip) is in the 1st stage of building $30 Billion dollars worth of Hotels and Casinos. These projects have already been funded,
not some pie-in-the-sky projections. Even Saudi Arabia gave the Venitian some $5 Billion Dollars to play with. I don’t know about your town, but $30 Billion dollars of construction over the next 5 years puts Las Vegas light years a head of any other
city in the country.
I know Las Vegas overbuilt, and there are definitely foreclosures in the pipeline, but there are jobs, and more jobs, available for unskilled workers making better than minimum wage, including unreported tips.
Las Vegas was probably the 1st city in US to experience the huge price inflation of housing, but it looks to me, that Vegas will be recover at a more normal pace, than anyplace else.
And yes, Vegas is different, unless your town does $7 Billion dollars in gambling revenue every year.
That’s the facts, and I’m sticking with them
Interesting. How many houses have you bought in Vegas this year?
QUESTION: So many investors, speculators, flippers committed fraud by lying on their loans, taking money under the table. Since so many loans were given with 0% down, what prevents them from just handing the keys back to the bank and never be responsible for a dime? Yes, their credit is ruined but who cares when you stashed aside 100s of thousands of dollars from previous fraudulent deals. My question is, can banks go after them personally for the full amount of the loan since houses are now 20 and 30% below what these crooked fraudsters got the loan for? Or is the house just the only collateral that guaranteed the loan? What is the legal recourse that banks have to get their full money back?
If the house is in a non-recourse state and they did not refinance, the house is the only collateral securing the loan and the house debtor walks away with bad credit.
If they refinanced and/or the house is in a recourse state, the lender can take them for all they have.
Many thanks for the reply. So which states are recourse states and which are not? BTW, Florida, California, Nevada and Arizona had the most crooks. I hope they are recourse states and they take them for all they have.
Look up individual states
http://www.foreclosures.com/www/pages/state_laws.asp?ChangeStatePref=true
BTW, forgot to ask, why refinancing makes a difference?
In California, refinancing takes the loan from non-recourse to a recourse loan. I do not know about other states.
Got popcorn?
Neil
Because if a lender could only take the house, then a homeowner could take out a new 100% re-fi mortgage, and walk away with hundreds of $K in cash, Escalades and Plasma TV’s. The bank is stuck with a house which the owner no longer cares about.
With a re-fi, the lender can go after not only the house, but what was bought with the House ATM money.
Even in non-recourse states, where you throw into the factual mix a loan application that contains fraudulent income into the picture, well I’m willing to bet an argument can be made by a creative lawyer that the borrower should nevertheless be held liable under some sort of “but for” argument. And of course, this brings into play the potential of the deficiency being non-dischargable through bankruptcy.
Something about blood and turnips comes to mind here (or stones depending on your version of the story).
How much can you really get from someone who never had savings, exhausted everything they had to try to make mortgage payments, lost the house, and possibly lost their job?
“If they refinanced and/or the house is in a recourse state, the lender can take them for all they have.”
Quick friend of my sister story: Young woman inherits a free and clear Napa, CA home from her deceased parents, and her husband (scammer, always looking for a prime gig) HELOC’s the home to start a business, which flops. He kills himself, and the bank takes the home forcing the young women with two kids into an apartment; she’s now on welfare!
Too bad. Why should she get a free pass.
Sad. Happened to one of my relatives. Worse, he didn’t kill himself. They never went on welfare, but it was close. As someone else noted, no amount of saving can offset a determined spender. It only takes one to bankrupt a marriage.
I have a friend finalizing a divorce due to the wife not agreeing to a spending plan (done during counseling). Oh, she spent as per the plan; it was just augmented with $30k of unauthorized spending on credit cards that went to a PO box.
Feel bad for them? Sure. Help family? Yes. Free ride? Heck no.
Got popcorn?
Neil
That’s what happens when a woman marries a loser. Now she and her kids suffer. I know of too many women who wanted the bad boy and their wish came true. Most are now single mothers on welfare.
The “Most now are single mothers on welfare” statement is clearly false. Taking direction from conservative politicians Clinton gutted welfare and turned it into a work training program. This is the wrong board to be coming to with a weak handle on the truth and a naked agenda.
I was talking about the girls I knew from highschool who got pregnant by losers. Anyway, they work, but minimum wage is not enough pay to raise their kids. Section8, welfare and WIC make up the difference. It’s just a fact of life, not an agenda.
Answer to that is just move to another state with your $. It’s not a Fed crime so screw your lender.
Politicians love schmucks like this guy, they think they have it so good - all the way down.
Dude, where’s my equity?
In the back of the lot next to the rusted Chevy Vega. On blocks.
“… a second job as a parking valet to make ends meet.”
“‘I personally think it’s well worth the effort,’ ”
Yes, the American dream, a second job as parking valet. That’s what I want to do when I grow up.
At least it’s not a job they can outsource to China or India. Bwahahaha.
It’s Match Game time for all of you Gene Rayburn fans:
“The car owner then said to the valet. If you like parking my car so much, next week I’ll let you wax my ___________ (fill in the blank).”
Hmmm what would Charles Nelson Reilly say?
Sorry I just can’t go there. Thanks for the laugh!
woody.
“…anybody who comes to Vegas can accomplish the same thing, but they have to put their heart into it.’”
The heart might be a stretch, but he CAN sell a kidney…
They’ve outsourced that to china.
Yep, he’s just livin’ the dream, wearing his purple monkey suit and parking all those folks cars so he can “afford” that depreciating house. What a true American hero….
“Camacho said some people are contributing to their own undoing by panicking and helping to bring about a self-fulfilling prophecy.”
Same as they did on the way up. Huh. What a shock!
Evolution is a two-edged sword:
“…We seem to be looking for ways to decline loans rather than approve them.”
and babeeeeeeeeeeeeeee this “real-estate-always-goes-up” is “evolution” on steriods!
Go Dog GO! By P.D. Eastman:
Seller: “do you like the price of my house?”
Buyer: “NO! NO! …I do not like the price of your house”
Seller: “Good-bye”
Buyer: “Good-bye”
‘They’re really scared’ that the same thing could happen in Santa Fe. ‘When they ask if they should sell, I tell them not to. I think Santa Fe is solid.’”
“Marg Veneklasen of Veneklasen Property Management said the sales of higher price ranges of homes have slowed, in part because ‘nobody has to sell and nobody has to buy.’ That is, rather than bringing down the sales price of a second or third home in Santa Fe, owners prefer to rent it, thinking prices will be better next year, she explained. ”
It sounds like these goofs are contradicting themselves. First we’re told there are suddenly lots of rental houses in Santa Fe. Then we’re told lots of speculators in Florida have bought properties in Santa Fe, obviously to flip them. And then we’re told prices should not go down, because Santa Fe is different, and because nobody needs to sell or buy. If the people who own properties in Santa Fe are so well off, why would they be trying to rent their places out? The people I know with vacation homes don’t.
Santa Fe is different! They’ve priced out all the locals, the property taxes are high and a decent taco costs $4! Nevermind flan or sopapillas for desert cause if you have to ask, you can’t….well, you know the rest. But you do get to shop at the ubiquitous “art” galleries that exist on every corner. Nothing like paying $300 bucks for a “native american” artist’s jug or vase.
Folks in Ruidoso, NM drank lots of Kool aid also but their market seems to have alot of listings popping up. We were out there 3 weeks ago and all the locals were crying about it being unaffordable and all the specu-vestors were whining about being unable to sell. Something’s got to give
When I read about all the illiquid homes owned by speculators, I just wonder when the primary markets will get whacked. Those alligator bites have to be stinging.
Got popcorn?
Neil
“Moranchel, with his wife and four daughters went from three bedrooms to four and doubled the size to 2,300 square feet.”
“The property manager from Los Angeles took a second job as a parking valet to make ends meet.”
“‘I personally think it’s well worth the effort,’ Moranchel said. ‘Look at what I have now. A big house, a big yard. It’s a sacrifice. In all honesty, anybody who comes to Vegas can accomplish the same thing, but they have to put their heart into it.’”
Congratulations, you’ve just bought yourself a depreciating property. Next year it’ll be worth $300k. You’ve managed to make yourself a slave to a property. Goes to show how screwed up this country really is. Give up time with your family to possess more and more and more. And everyone wonders why we’re turning out under-educated kids. Teachers can only do so much and there’s no one at home to do their part, like helping with homework. Why the h*ll should everyone else raise their kids just so they can possess “things”.
“The property manager from Los Angeles took a second job as a parking valet to make ends meet.”
Property manager? If he could see farther than his AH and knew his trade he would have been able to land a spectacular rental propery.
“An owner who’s been in a house for a couple of years and has little or no equity could lose money, he said.”
Look, I’m a housing bear as much as anyone, but if you have a nice house in a neighborhood you like, with a good stable job, with your kids in a good school, and you can afford your house payments now and in the future, and you have emergency savings, STOP WORRYING AND LIVE YOUR LIFE.
People are always afraid of missing the free money gravy train, instead of being grateful that they live a good life.
The Real Estate crooks have convinced people that buying a house is a good investment. BULL SH*T!!!! Buying a house is the worst investment you could make. For the last 100 years house appreciating (even with this bubble taken into account) did not even keep up with inflation. Compare that to putting your money into the stock market and you would be a billionaire by now.
Buying a house is the worst investment anyone can ever make. Don’t fall for the snake oil people. The amount of people who benefit on a buy/sell transaction are everyone but the buyer and seller. It is the real estate companies, loan companies, title companies etc… the ones that benefit from a RE transaction and they are the ones that always try hard to convince people that owning a house is a good thing. That is the biggest lie of them all. DON’T FALL FOR IT!!!!!
Renting Makes More Financial Sense Than Homeownership
http://www.smartmoney.com/home/living/index.cfm?story=rent&cid=1012
But if you are raising a family then a nice stable neighborhood ups your odds of a successful outcome for your children several times over; it’s a documented fact. Money isn’t everything!
How stable is your situation if you can barely afford the house? And how stable is the neighborhood if everyone is just as stretched as you are?
“and you can afford your house payments now and in the future ”
Ah, there’s the rub.
But what is that I see, rising in the East? The slings and arrows of ARM resets and outrageous lost fortunes!
Exactly. But the issue is: Very few who bought 2003 or later bought within their means!
Also, its only in this abnormal market that buying isn’t (long term) smarter than selling. Normally you come out ahead the purchase price of the house in 30 year. Today, you’ll fall 1/2 the purchase price behind. (In other words, buy/rent are 1.5 times the purchase price of the home out of whack.)
Today, buying is stupid. In a few years I’ll change my tune. When? Let’s relax and debate that in 2009.
Got popcorn?
Neil
I’m pretty booked for 2009, Neil. How about we hold off on that debate until 2010?
ROTFLMAO.
Wow…that was too funny
There is also a lot to be said about locking in the price of your rent for the next 15 years (or whatever your mortgage span is). After that, the rent is free … well, except for property taxes. I like to look at this from a purely financial standpoint, with a little quality of life sprinkled in. At a reasonable price, a home is a solid asset to own and a good place to raise a family … if purchased at a fair price.
100% agree Statsman.
But its not even close to the time to buy. Reasonable prices are still too far in the past.
Got popcorn?
Neil
“The parking valet from Los Angeles took a second job as a property manager to make ends meet.” is more like it.
Exactly
“owner of the Tucson based Bright Future Business Consultants. ‘They won’t stay as low as they are now. … I would say that within a year we will see prices inch back upward.’””
Beeecaaauuuuussssssse…why?
Because bad times are over before they even start as our glorious politicians and wise business leaders have finally tamed capitalism’s vicious and unpredictable gyrations?
Tucson is beautiful if you can afford to live in the foothills. Otherwise, the Old Pueblo just ain’t that nice a place to spend the summers down on the valley floor. I don’t care what Linda Ronstadt says.
You think the heat bothers her more these days?
Because “I would say that within a year we will see prices inch back upward…….this will give me plenty of time to inch my outa town to escape the rath of the FB’s who buy off on my BS”
Oh, Arroyo, don’t be silly! The answer is:
Because This Is Tucson.
Everyone Wants To Live Here.
Right?
‘In my 20 years in the business, I have never seen the mortgage industry so scared and hyper-reactive,’ he said. ‘We seem to be looking for ways to decline loans rather than approve them. We seem to be losing products on a daily basis.’”
Uh, isn’t that how the lending business is supposed to work? They don’t lend you the money unless they are absolutely certain that you can pay it back?
“So to sit and wait as a consumer or potential home buyer may not be in your best interest any longer. That program that could put you in a home might not be here in a month.”
In other words, ‘we could put you into a high-risk loan package right now for a house you really can’t afford, but you’d better hurry up as we may not be able to do this tomorrow’.
Thanks, but no thanks!
Of course, the prices of the houses are going to shrink to reflect the unavailability of financing.
I found that quote hysterical as well. Even in a gloom-and-doom story, the agent turns it into a sales pitch.
In other words, “If you don’t buy now, you’ll get shut out of the market. No, not because prices are going up, which used to be our sales pitch. Now, it’s because the crappy loan programs that will let you buy at 10x your income are being discontinued left and right, so you better buy by midnight tonight.”
The frustration among agents seems to be reaching critical mass. Every quote you read from them now makes them sound like a 5-year-old stomping their feet, throwing a tantrum: “They’re taking away all our of loan programs! I want things the way they were before. That’s the only I know how to sell houses!”
Check out these paragraphs from the end of the Las Vegas story:
As an example of how quickly things can change, Countrywide Financial reduced the maximum loan-to-value ratios on all loan programs by 5 percent in what it classifies as “soft markets,” which includes Las Vegas and Phoenix, housing analyst Dennis Smith of Home Builders Research said. Any loans processed since Aug. 13 are affected by the change.
“Just like that, down payment requirements increased by 5 percent,” he said. “Just like that, how many more consumers have been taken out of the marketplace? It’s amazing they can wield the hammer like that.”
Waaahhhhhhhh! Sorry, pal, but they’re the hammer and you’re the nail. Shall I draw you and the rest of the Las Vegas REIC shills a picture?
– Judge Smales
“You’ll get nothing and like it”
The comments you get from realtors remind you of the rants of a drug addict.
Gimme back my crack! Gimme back by 100% LTV, neg-amort, NINJA loan! It’ll all be better after that.
Hey Judge, I want a hamburger, no, I want a cheeseburger, i want a hot dog…..
Nice. I hear Lacy Underalls is a realtor these days.
“A big house, a big yard. It’s a sacrifice.”
I may soon be moving to a bigger house with a bigger yard. It won’t be a sacrifice. I’ll be *renting* it at about 1/2 the monthly cost of buying…same as I am now. And I am now starting to get invited to dinner parties, so “it’s all good”.
One man’s “sacrifice” is another man’s Wall St. bonus.
I’ve got the popcorn.
When someone is that greedy, I have to agree they deserve what they get.
Munch munch munch.
Neil
“‘When they ask if they should sell, I tell them not to. I think Santa Fe is solid.’”
Another lying RE agent!
I find this highly interesting as Santa Fe is one of my top 2-3 destinations. I will personally check this out and report back.
I love Santa Fe but when I checked it out over a year ago I found I could live along the CA coast for almost the same cost.
Of course he doesn’t want “them” to sell now because he trying to dump his flips first!
You know it.
edited……“‘When they ask if they should sell, I tell them not to. I think Santa Fe is solid…….rather than loose stool”
Check this out. I run past this place every day. This greedy bastard tried all summer to sell this place himself with a “Make Me an Offer” sign in the front yard. This is a teardown on a very nice lot overlooking White Rock Lake. He couldn’t get any spec builders to bite because he wants $1M (city appraisal is 193K - note to self, inform city tax appraiser that this 193K valued property is being offered for sale at 5x that). The spec idiots are definitely sniffing around this area looking for teardowns and this lot has a primo view but you just can’t make the numbers work if you pay $1M just for the lot. There are no $2M houses in that area. This is the grossest greediest thing I’ve seen yet around here. They will never sell this place anywhere near what they’re asking.
http://www.9210lakehighlands.com/
It would be funny if tax appraisers automatically taxed the owner for what they are selling it for. That would get homes marked to true market value.
I’ve already drafted a complaint letter. It’s going out tomorrow. It encloses the listing.
Got to be a joke. The agent looks like Antonio Banderas. Is this mic on?
Maybe his job as a dancer at the local gay club fell through.
Well, one of the “highlights” of the house is listed as “MEETINGS AT THE BATH HOUSE”. So you might be on to something here.
LOL. I won’t comment. Suffice it to say I’ve lived around there for about 9 years.
Definitely Antonio Banderas. The real realtor for the lakehighland property. LOL :
http://www.ebby.com/agent/genegarramone
Does the ghost of White Rock Lake still show up every once in awhile?
Do the power lines come with that “primo” view or are they extra?
I’ve been in the Dallas area once. It was in August. The thought of sailing, biking, playing tennis or walking never once crossed my mind. The only thought I had while I was outside was, “pretty soon the sweat on my unit is going to soak through my pants and I’ll look like a fool.” And this guy wants $995,000 for a 1,200 square foot home. Wow.
It’s a teardown. To build a $1M paen to your “unit.”
No bubble in Dallas by the way. Remember that.
By my calculations it would take about $3.68 to accomplish that task.
It’s crazy around here. Some places are asking for $1000/sf while others ask $70/sf
The only thing consistent is the massive inventory and wide open spaces.
NYCityBoy,
I’m sorry you max out out 3.68.
Whenever you run by…..be sure to relieve your self on his property……..and bring a few big dogs with you.
“SUNSETS ARE FREE”
Now I’m interested.
Oh man, I just hate it when our landlord charges us extra to look out the windows every day.
“‘I think we’re going to see a little bit of price reduction,’ said Sharon Roshek of The Roshek Group in Woodland Park. ‘Those people who don’t really have to sell, they should take their house off the market because they won’t like the downward pressure.’”
ok, a little price reduction is coming. but the owners won’t like the downward pressure. so which is it?
‘When they ask if they should sell, I tell them not to. I think Santa Fe is solid.’”
i would feel much better too with those comforting words. yup. base your financial future on a thought floating inside a realtor’s head.
“owners prefer to rent it, thinking prices will be better next year, she explained. ”
“thinking” does little to slow down hedge fund/lender implosions, resets, M2Mkts, record inventories etc… (unless of course we’re talking about jedi mind control thinking)
“Noy Kelly, a real estate agent in the Tucson area, agrees that this is an opportune time to buy a home. ‘We are in an area where economically it makes more sense to have homes become lower in value pricewise so people can still afford them,’ Kelly said.”
why do i sense this person doesn’t exactly have a full set of teeth in her mouth.
there you have it folks. we’ve interviewed the 4 stupidest people in america this morning. Ben, back to you…
I’ve been to Woodland Park Colorado. It’s very pretty up there and the air is crisp and clear. However, it posses some of the same problems mountain towns have. No industry. Except the 25 minute commute into Colorado Springs. Skiing locals have to travel over 2 hours to hit the slopes. There is a weird price range there too. Many homes that would classify as “logging homes” at really cheap prices, then homes for 1 million or more. Anyone on this blog know how many foreclosures are happening up there?
Think the average realtor can look at this http://tinyurl.com/yvsjxv and understand why the housing market is screwed?
Wow, make less money in the near future? That’s a little scary.
‘When they ask if they should sell, I tell them not to. I think Santa Fe is solid.’
They’ll be burning him in effigy this time next year.
http://www.zozobra.com/
“‘In all honesty, anybody who comes to Vegas can accomplish the same thing, but they have to put their heart into it.’”
I think I’ll pass it up, and save the wear-and-tear on my heart!
“‘I think we’re going to see a little bit of price reduction,’ said Sharon Roshek of The Roshek Group in Woodland Park. ‘Those people who don’t really have to sell, they should take their house off the market because they won’t like the downward pressure.’”
——————————————–
There was a realtor in FL the media quoted a year or so ago. She said that people should withold putting their homes on the market until prices return. That same realtor had a few properties go into foreclosure last month that she had up for sale and could not sell. Evidently she wasn’t practicing what she was preaching.
Quite a few Realtors were trying to sell their own properties, while telling other people not put their homes on the market. They didn’t want the extra competition.
“‘Current market conditions, a lack of newly announced projects and the cancellation of those proposals with unrealistic development plans will ultimately help the luxury condominium market in the long run,’ said principal Brian Gordon. ‘The market remains in the midst of a rebalancing from an overheated demand profile to a skeptical consumer perception.’”
so that’s what it is. a perception. we’re merely perceiving the hedge/lender implosions, record inventories, pending resets, record forclosures, panic moves from the boyz and coming M2Mkt reports.
he’s right guys. we should base our world views on facts rather than perceptions
Well, I just took a look at “The Management Company” (Santa Fe) listings. I had a debate with someone at this company two years ago about the market there. She assured me that 2005 was the best possible time to buy in Santa Fe. I disagreed.
Well, what I see are a bunch of pretty nice properties with ridiculous wishing price rents. No wonder they’re sitting. Santa Fe is one of those places like Aspen. You better have money before you go there cause you ain’t gonna make any at any job you’d get there. Great looking places for rent overpriced by about 50%.
The mayor of Santa Fe recently proposed hiring Mexican immigrants for the police force as they are unable to hire Americans to fill the positions. Maybe the fact that they’re only paying $22K a year to start has something to do with it. So, instead of adjusting to the market demands he proposes to bring in people with dubious qualifications to become police officers in Santa Fe. Hey, maybe he can hire some of those high quality Mexican Federales we’ve read so much about.
Police Officer… yet another job Americans won’t do?
That argument is really getting old quickly. Just pay people what they SHOULD be paid for any given job and the Americans will line up around the block ready and willing to take these jobs again.
How about paying city officials what they are worth. $7.00 per hr. No benifits…..
Does that $22K/yr come with a welfare application? WalMart clerks make more than that.
What is the climate like in Santa Fe? I’ve driven through New Mexico twice, I think. I don’t really know anything about the state. It’s hard for me to imagine a high-end market in a state that looked so desolate, dotted only occasionally by a small Indian reservation.
Sorry, it’s one of the most beautiful places in America. When I lived there through one winter I awoke to a snowstorm dusting the tops of the desert pines. It really is the land of enchantment.
Also the land of trust fund babies going to art school or rehab on Daddy’s dime, 2nd and 3rd wives finding their ‘ness, LBO refugees trying to repair the pieces of their cracked souls [think TW's Gerald Levin, who lost his mind after getting scammed by Steve Case and AOL], art felons, burnouts, heroin addicts and generally psychotic, delusional refugees from the rest of the country.
Food’s great though.
Burnouts. That’s me. I just want to be a climbing or river rafting bum in a beautiful place.
Me too, txcheck57. Kids gone and I’m ready to enjoy - Low overhead is the key to freedom.
something about the high altitude makes the women visiting from the northeast buy huge silver and turquoise necklaces and giant ruffly cowboy skirts, and lipstick-red cowboy boots. Then they get them back home, look in the mirror and say, what the hell was I thinking??
It’s a beautiful place. Warm and dry in the summer, cold and dry in the winter.
Santa Fe is cold most of the year. It’s warm, even hot, a short period during summer. It’s at a very high elevation, so some people have trouble breathing their first few days there.
It’s also very dry, and new swimming pools have been outlawed.
Sounds like a great investment opportunity.
“Buy a Sante Fe swimming pool. They aren’t making any more.”
SF is at about 7000 feet. When there’s no drought, there can be a good amount of snow in the winter. Feet at a time. It tends to disappear fairly quickly because it’s dry. I agree summer in the higher altitudes of Santa Fe and, say, Los Alamos (~7400 ft) is comfortable. Low humidity. Many houses do not have air conditioners or even swamp coolers. Once you get down to Albuquerque (~5300 ft), things get hotter. Of course, the winter is milder there as well.
While it can get cold in the winter, and it can snow a lot, you don’t get that New England and Midwest bitter cold. Usually 20s at night over the winter, 40s in the day.
Although not huge distances apart, you can see substantial differences in cities/towns in Northern NM. Taos, Los Alamos, SF, Espanola…
Food is excellent.
Santa Fe, Sedona, etc….
I think there is a real myth about the money there…yes, there are a few people with the $$$ that could give a rat’s @ss about when their property sells…but, at least in Sedona, there are many many more people leveraged into their mansion that may be able to hold out a little longer than your average stucco dweller, but they don’t have any “real” money….their debt funding is just a bit more substantial. They can just play a bit longer. That’s why I keep saying, hang on, txchick…your dream property WILL come to you.
“Santa Fe, Sedona, etc….
I think there is a real myth about the money there…yes, there are a few people with the $$$ that could give a rat’s @ss about when their property sells…but, at least in Sedona, there are many many more people leveraged into their mansion that may be able to hold out a little longer than your average stucco dweller”
I rented in Sedona for two years, and I now own (100% with no mortgage) a home just outside Sedona. I personally know many people who are really, really rich in Sedona - wealth with a capital “R”. No doubt there are Sedona folks mortgaged to the hilt, but don’t think there’s not loads debt-free wealth in that area - there is. I’ve stayed in and visited Santa Fe many times over the years, and one thing I can definitely say comparing Sedona and Santa Fe - if really good food/restaurants matter to you, make it Sante Fe. Sedona’s restaurant scene is not even in the running.
Ria,
I agree with your food assessment, for sure!
…but…I have known and know some of those really rich people, and underneath the veneer are some precarious financial situations. Yes, there some actually “rich” people there, but I’d estimate it’s less than what most people imagine. I know of two $1 million plus homes in OCV go to foreclosure. And I know one “rich” (really, you’d be surprised because the perception is that she’s loaded) woman, whose family pulled the plug on her non-stop financial fiesta and she’s trying to unload 6 million dollars of property….
I’m just sayin’ there is a lot of professional posing in Sedona…and a lot of those posers are in some trouble right now.
Sedona used to be glorious - used to spend summers at camp near there in late 60’s on the road from Flagstaff to Sedona- slide rock was only for the locals and we used to mud bath at oak creek. Pre yuppies and the faux spiritual it was just a great place - now it’s a vortex!
The old joke about how to become a millionaire in Santa Fe:
“Bring two million.”
My nominatuion for the greatest Marketing Ad of the Bubble…”Real Estate prices are declining….Get you HELOC now before your equity dissapears!”
‘We seem to be looking for ways to decline loans rather than approve them. We seem to be losing products on a daily basis.’”
“‘Everybody hears the gloom and doom, but not this part of it, that loan packages they were qualified for in the past are no longer available,’ Biaggi said. ‘So to sit and wait as a consumer or potential home buyer may not be in your best interest any longer.
- Chris mentions that ‘they were qualified for in the past’.
His problem is that the ‘past’ he refers to is the last 5 years.
If he will reference the ‘past’ as in the last 50 years, folks actually were required to have downpayments and verifiable employment.
“‘I think we’re going to see a little bit of price reduction,’ said Sharon Roshek of The Roshek Group in Woodland Park. ‘Those people who don’t really have to sell, they should take their house off the market because they won’t like the downward pressure.’”
Anyone else know the foreclosure situation in Woodland Park. It’s a great little mountain town. However, it has no industry unless you count the 25 minute commute to Colorado Springs. Heck, even is you want to ski you have to drive over 2 hours to the nearest Ski Resort…
“‘I think we’re going to see a little bit of price reduction,’ said Sharon Roshek of The Roshek Group in Woodland Park. ‘Those people who don’t really have to sell, they should take their house off the market because they won’t like the downward pressure.’”
Anyone else here know the foreclosure situation in Woodland Park? It’s a great little mountain town. However, it has no industry unless you count the 25 minute commute to Colorado Springs. Heck, even is you want to ski you have to drive over 2 hours to the nearest Ski Resort…
You guys are falling down on the job, this has to be the best (worst, WTF ever@#$@) quote from the article.
“Noy Kelly, a real estate agent in the Tucson area, agrees that this is an opportune time to buy a home. ‘We are in an area where economically it makes more sense to have homes become lower in value pricewise so people can still afford them,’ Kelly said.”
WTF IS THIS SUPPOSED TO MEAN other than please please please do the deal so pathetic Noy can eat.
That papers print shit like this amazes me. Are these “journalist” really this shitty or just plain lazy. I disliked writing in college, but these clowns make my composition look damn good.
If you break the quote down he is actually saying you should buy now because prices are going down =)
The bow has just broken away from the stearn, now this ship can really get to sinking.
‘We didn’t expect it to be as difficult as it is,’ they have no idea…flashback 2.5 years ago, a national historic district in Detroit…we had $463,000 into the restoration, were glad to sell for $310,000 (net). Where there are no buyers, you can’t cut prices enough. BTW, we could handle the loss, many cannot.
Wow, this seems cheap for Seattle:
http://www.sellmodern.com/listing-Seattle+Modern+Lofts+in+Hip+Georgetown-213.html
I could buy that cash and still have enough money to stay at home and listen to “penny royal tea” till I need another fix
Georgetown may be ‘hip’ just b/c it’s got a biker bar that posers visit, and a coupla good cafes, and it’s “close in”, but it’s in the Boeing Field and Seattle airport flight path, is hemmed in between I-5 and industrial warehouses, and gets the worst pollution during our temperature inversions in the winter since it’s in the industrial Duwamish river valley.
‘Wow, this seems cheap for Seattle:’
Chic dentist waiting room appeal.
Enough to make you want to vomit
DES MOINES, Iowa, Aug. 31 /PRNewswire/ — “Wells Fargo applauds President Bush and the members of the administration for their efforts on behalf of homeowners who are having difficulty making their mortgage payments. The initiatives the President announced today are in keeping with Wells Fargo’s commitment to helping our customers, and aligned with our fair and responsible lending and servicing principles. Strengthening the Federal Housing Administration provides homeowners with another valuable tool in their pursuit of homeownership options and rightly deserves broad support from the policy-making community.
http://biz.yahoo.com/prnews/070831/aqf039.html?.v=20
“An owner who’s been in a house for a couple of years and has little or no equity could lose money, he said. That’s a good reason some homeowners should think twice before putting up a for-sale sign. If you don’t need to sell, keep your house off the market, some experts say.”
And now for the translated version:
We are desparate. We can hardly hold on with the inventory hitting the market and are going to go under if anyone else lists their house to test the market. Please allow us to keep the prices artifically inflated for just one more year. If you don’t, half of the brokers and real estate agents will go bust. Have some sympathy please … and er … sorry for screwing you on that loan last year.”
… and er … sorry for screwing you on that loan last year.”
It amazes me how many people don’t realize those “prime” Option-ARMs where 95% of the people paid the minimum are going to be quite the drag on selling a home.
At least they realize its going towards a real buyers market. Not quite yet… but getting there.
Got popcorn?
Neil
One question: How do they calculate the inventory in months? If they are using past sales data (probably from the past one or two years), the real inventory in months could actually be right … but in a different scale … YEARS!
You can’t use sales information from prior to August to predict sales in future time periods. This is the type of situation that drives us statisticians nuts. Every estimation is pure guess work - no mathematics can be used to back up guesstimates like inventory in months.
Pardon me while I pack my things and head for the hills.
We’re talking about realtors here. They aren’t the brightest bunch
Give it a break, Statsman.
Most statisticians don’t understand out-of-sample testing, and of those that do, most don’t understand that “predicting models” are totally different from “explanatory models”. (They only teach the former in school.)
Most statisticians are like realtors. They are the shysters of the science world.
You should just fire them first, and hire a real scientist (like a physicist) later.
Figures don’t lie, but liars figure.
They are counting houses under contract as sold houses. But some of these houses will be counted as “sold” three or four times in the next year because of lack of funding. So in my estimation, a rough way of accounting for multiple sold houses and also FSBO houses is to multiply by a factor of 2. “15 months inventory” is more like 30 months.
Got 10% down?
“‘Now is the ideal time to buy because we are seeing prices lower than they have been in a long time,’ said John Strobeck, owner of the Tucson based Bright Future Business Consultants.
What a crook!!!.
Home prices in this very low wage land at least twice above would be norm.
This guy still thinks peope beleive Red Start.
Slash prices to 1999 levels if you are in a strong area. Otherwise, KYAG.
“‘Everybody hears the gloom and doom, but not this part of it, that loan packages they were qualified for in the past are no longer available,’ Biaggi said. ‘So to sit and wait as a consumer or potential home buyer may not be in your best interest any longer. That program that could put you in a home might not be here in a month.’”
That program that supported bubblelicious prices might not be here in a month, either. Don’t try and catch yerself a falling knife.
I just spent a weekend in Prescott, Arizona. The number of land and homes for sale is staggering. Every other ranch,lot and home seems to be for sale. Asking prices seem to still be up there. Lots in the PUD’s (Plan Unit Developments). Lots only and some spec homes. No one wants to deal much saying the number of lots is limited. Do not know who is holding the bag on thses but prices have to take a dump soon.
“Barker has also been receiving calls from people in Florida and other states where the real-estate market has dropped sharply and who own Santa Fe property.
“In Florida, it seems that nothing has sold for months,” Barker said. “They’re really scared” that the same thing could happen in Santa Fe. “When they ask if they should sell, I tell them not to. I think Santa Fe is solid.”
Is this what “Errors & Omissions” insurance is for? I hope not. Best get yourself a good lawyer, Ms. Barker, IMHO.
““We’ve tried to keep the rent the same because there’s been such a tremendous increase in inventory…”
Like, you have the power to control that. I think not, fella.