Local Market Observations!
What do you see in your local housing market this weekend? Defaults? “Our foreclosure rate is nowhere nearly as bad as parts of California and Vegas, but realtors say it is getting worse here. A five bedroom house in Kaimuki. A three bedroom fixer-upper in Waipahu. A two bedroom townhouse in Mililani. Another one in Kapahulu. And a four bedroom house in Kailua.”
“‘Foreclosures have doubled from last year to this year,’ said realtor Carlin Yamashita.”
“There are currently 422 homes in foreclosure on Oahu that are listed for sale, including this four bedroom, three bath house on Kaimake Loop in Kailua. ‘I was surprised to hear it was in foreclosure. The house has been empty for two years,’ said neighbor Nani Kauka.”
“Neighbors say a family from the mainland had purchased this house in 2005 for a little over a million dollars. ‘Which really surprised us because it’s a two-story house in a regular neighborhood,’ said Kauka. The asking price is now $875,900.”
“‘What the foreclosures is caused by is the value is declining and the homeowner having slight problems with the payment, but the value isn’t there so they’re more likely to walk away from the property,’ said Yamashita.”
Lower prices? “The average medium price of a single-family home in the state dropped by about 10 percent, from $272,000 in 2007 to $245,000 this year. ‘There was a feeding frenzy for investment properties from 2000 to 2005 which drove prices up,’ said Robert Scaralia, President of the Rhode Island Association of Realtors. ‘Now we’re seeing a correction of that market sector.’”
“According to University of Rhode Island Professor Leonard Lardaro, who is often interviewed by the Rhode Island news media, a downturn is a needed remedy for an overextension of the market.”
“‘We don’t operate under a profit system. We operate under a profit and loss system, and loss serves a purpose. Loss cleans out inefficiencies in both production and management methods, and it also better aligns production with consumer preferences,’ said Lardaro. ‘Our free market economy is cleaning house, and we’ll be a lot stronger going forward when it’s finished.’”
More inventory? “Calgary’s MLS listings are ‘totally out of whack,’ surpassing 10,000 in April and growing by the day while sales are slumping. Listings for single-family homes and condominiums have hit an all-time record.”
“April MLS sales of single-family homes (1,363) in Calgary metro were the lowest for the month since 2000 while condo activity (581 sales) was the slowest since 2003 — even before the years immediately leading up to the city housing market boom in 2006 and 2007.”
“If inventory were a 10th of what it is right now, overall sales would still be pretty good, said realtor Gary MacLean, ‘but we have an inventory that is way out of control.’”
“‘The other factor is a lot of people got in the market when it was peaked and paid a lot for their house. With the cost of living going through the roof, the first thing to go is the house because they’re overextended. They’re house-poor,’ MacLean said recent data showing declines in housing starts and residential building permits also have a ripple effect on the local real estate market, as do speculators.”
“‘Those are the people that went out and bought four, five, six, seven condos in a building that wasn’t going to be built for two years. All of those buildings are now being completed. Those people did not want to be landlords. They were going to buy the condo, hold it until the building came due and put it on the market,’ said MacLean. ‘Well, the problem is of course we have the highest number of condos in history for sale.’”
Desperate sellers? “St. Joseph is the patron of fathers, carpenters, the dying, social justice and the universal church. But this saint’s popularity surges when the housing market tanks. Longmont real estate agent Diane Stow said, ‘Whenever the market gets tough, there’s a run on those little statues, without question.’”
“Phil Cates, a mortgage banker for 22 years and a Lutheran, said he began the online business in the 1990s after hearing from a friend about the practice of burying the holy statue. After listening to the woman’s woes on the housing market, her mother asked, ‘Have you buried a Joe?’”
“Critics have told Cates that he was ‘going to hell’ with this promotion of devil worship or voodoo. But he dismisses those claims, adding that ‘most people have tremendous amount of fun with this.’ And, he quipped, ‘in this housing market, we’re all praying for a miracle.’”
Sounds like the wheels are coming off in Canada.
BTW, on Thursday I went to my first trustee sale on the courthouse steps. It was pretty surreal. Just me and the lady rep. There were 5 houses, 4 were postponed and 1 went back to the lender. She told me that the previous day she had her first 3rd party sale in 6 months. And the guy who was telling me about selling and buying his dream place in the country confided in me this week that he hopes the market will get better because ‘this house is killing me.’
I attended trustee sales in a couple of different counties here in Texas this past week. The trustees were basically talking to themselves.
There were people standing around looking like they were prepared to bid, but I didn’t see anyone actually place a bid, so everything went back to the lenders (at least while I was watching).
One trustee said he was “discounting” properties but, after comparing his opening bid list to what the county appraisal district said the market values were, I couldn’t see the discount. Perhaps it was off the amount owed the lender, because it certainly wasn’t off what the assessor thought the properties were worth.
Ben, first post here but longtime reader, I’ve been talking about the housing bubble for 5 yrs now. Your post proves an important point I’ve hammered on. That is, in hard times you don’t own stuff, stuff owns you!
’ And, he quipped, ‘in this housing market, we’re all praying for a miracle.’”
And the bubble sitters are praying as well. Another case of God v God
My God can whip anyone else’s God’s hiney.
Dwelling sales dropped 19.9% in 1Q 08 for the City of Chicago proper.
Even so, I failed to stop a friend from catching a knife this week. Although my efforts were successful last summer in delaying him, he could not resist the urge to buy another apartment.
Trying to be reasonable, my argument wasn’t so much “don’t buy” as it was “what’s the harm in waiting - just in case”. It will cost him about 4.5x his salary.
The worst part? A bad omen came the very next day at his work - a broadcast email from the head of his organization warning of “unfathomable” budget cuts.
I failed in my efforts to warn off two “peak baggers” in two different cities. One bought at the absolute peak of his market 3 years ago. The other bought this spring in a market that hasn’t turned, but is showing the telltale signs of rolling over.
One has lost 25% of value, the other will likely lose same.
Trying to be reasonable, my argument wasn’t so much “don’t buy” as it was “what’s the harm in waiting - just in case”.
It’s a reasonable argument, especially now that the market malaise has seeped into the public consciousness. I’ve had success in dissuading one or two people, but more friends have avoided my advice.
It will cost him about 4.5x his salary.
Yikes, especially with “unfathomable budget cuts” looming.
My company in North Texas is saying the same thing. The 4th quarter is going to be bad bad bad.
Funny how decently run companies understand this, while other companies ‘hope for the best’. Although, my employeer is doing well, we are cutting back on all discretionary spending, new initiatives, and trying to execute better. Expecting a hiring freezed very soon as well.
Update to a post I made a few weeks ago: I was pretty much assaulted with a barrage of phone calls by the living significant other, while at work two weeks ago to stop by and see a cute little house in Arlington, VA. I posted a request in the bits and bucket section asking for additional resources to show her it was a really bad time because the market still needs to adjust. She made it clear that we can both afford house. (Sure! I can also afford hookers but that’s a different story.)
Anyhow, I was dragged to view the house and she fell in love and wanted to make an offer. I told her in the best loving and charming voice that she would be making an offer on her own, but I will not be a party to being house poor or helping someone else fund their retirement. The asking price is/was $430,000 and I suggested she make an offer of $290, 000. She listened to the idiot use house person and made an offer of $390,000 as a starting point for negotiations. The sellers came back with $420, 000 as the price they would accept. So, while waiting for the seller to respond (took them a week) I showed her how much they paid for the house in 1998 vs rent for two of us in sharing a 1bdrm. I think somewhere in between her loathing and/or despising of me, the small bell went off that I am probably right. The darn place is overpriced. I’d love to say I feel vindicated and she made the right decision. But she never forgets anything.
What does have to do with weekend observation? Sellers are still freaking crazy and expect to get prices at or close to 2006/2007 levels. And, it seems there are buyers who are more than willing to indulge. I just checked ziprealty and the house is no longer listed. It was on the market for approximately 45 days.
Do you also have a dead significant other?
It’s phone calls from the dead significant others that worry me.
I got an email from one last year. Scared the bejeesus out of me. But it was her husband using her email account. Whew! I thought I had crossed over and didn’t know it.
it was meant as a quip…
It’s all good. We’re supportive of necrophilia around here.
Well, I personally would like to thank you for not buying this pig’s house.
Oh, I’m so nosy. We sold in Arilngton and now rent here. Where was the house?
So how did it go with the realtor when you pulled your offer?
might as well see who gets in McCain will do some choppin so Arlington could come down more
I’m in 22151 and we’re 20% off peak so far
AZ Repugnant had an article about Westgate developer holding an auction to clear out left over condos with prices upto 60% off.
So, I started digging into some of their recent transactions, and just about EVERYone was a flipper that was involved with multiple other properties in the valley. These condos were PURE speculation driven. NO ONE wants to LIVE in a condo in a shopping mall, attached to the Coyotees areana, across the street from the Cardinals stadium. Who wants to fight that kind of traffic? 1400 sqft for $400K, or 1700 sqft from $500K. What?
But think of the life and culture that is brought in by those thousands of refined football and hockey fans.
They are currently planning on building several condos/townhomes right in between the current baseball stadium in Arlington and the new Dallas Cowboys stadium. For some reason several people I have talked to think college students will be buying them. Like they have a spare $300k.
Wasn’t that the case several years ago? Overly rich (and stupid) parents purchasing condos for their little darlings so they wouldn’t have to live in the college dorm and “it’s a good investment because real estate only goes up.”
I just bought last year here near Chicago with a 15-year fixed and will probably have to move in 5 years for career reasons. Oh well, can hope by that time the prices will have reached some sort of equilibrium.
BTW–report here out in Oak Park: asking prices still holding pretty steady, nothing much moving. People still seem to be in denial. Foreclosures up 51% over last year.
Oak Park’s a little weird because so much of it falls into one or another of the “historical districts.”
Right now the big stink has been about the planned “downtown revival” projects around the Colt Bldg. and the high tax breaks the builders have been insisting upon. Oak Park residents are up in arms and asking that the entire project gets put on the back burner until Oak Park gets offered a plan that won’t require residents to cough up so much in support.
I have the suspicion that we’re going to see yet another condo building going up, however. Yuck–we can’t sell what we have.
I am also in Oak Park, IL and agree with Grumpy that the same places are listed on realtor.com for months. As foreclosure approaches, the price drops quickly and sometimes a sale results.
Darrell
I would think alot of those condo’s were bought to rent out to super boll fans, what do you think? E-mail me off line at kbarrett “at” usic.com. I live at 80th and Cactus - just a couple of miles from you. I like your posts in the AZ republic articles comments - very entertaining.
“Phil Cates, a mortgage banker for 22 years and a Lutheran, said he began the online business in the 1990s after hearing from a friend about the practice of burying the holy statue. After listening to the woman’s woes on the housing market, her mother asked, ‘Have you buried a Joe?’”
Hey Joe, where you goin’ with your head buried in the sand?
Hey Joe, I said where you going to, buried in the sand?
Alright, i’m goin’ down to help sell a property of a lady
You know I caught her messin’ ’round with another house selling plan
Yeah, i’m going down for this old lady
You know, this St. Joseph most definitely gets around
Huh, and that ain’t too cool
http://www.youtube.com/watch?v=m8Ebcx-mTns
I think Jimi’s “(I think we) better wait til tomorrow” is a perfect song to describe the mindset of all us HBBers vs. realtors and our timeline for purchasing a house….
“Well, I’m standing here reading ’bout double-digit declines and slumpin’ home sales…
Got no money for neither a boob job or even botox injections
But today’s the day, this Realtor makes her 6% commission
Come on all you fence-sitters, there’s no time to stall….
…And you keep tellin’ me that…
I think I’d better wait until 2011….I think I’d better wait until 2011…I think I’d better wait until 2011…
Atlanta:
Condos–Asking prices for new condos have dropped an average of 30%. There is no available finacing for development of new condos. Recent buyers in the splashy Atlantic Station condos have been hit hard with foreclosures.
Foreclosures–22,554 for the 1st quarter 2008, which is 1 out of every 91 homes. Even with these high numbers, we are ranked just 16th in overall foreclosures in major metropolitan areas.
May 2008 foreclosures topped 7300.
Gas Prices–The price of gas hasn’t stopped the soccer moms from tooling around in their giant SUVs. Now they are just hosing up traffic even more than they normally did by driving SLOWER. I mean really slow, like coasting whenever possible. I am dreading the day when some of them decide turn their Yukons into modern day rickshaws by adding poles to the front and having illegals pull them around.
Condos–Asking prices for new condos have dropped an average of 30%. There is no available finacing for development of new condos. Recent buyers in the splashy Atlantic Station condos have been hit hard with foreclosures.
Foreclosures–22,554 for the 1st quarter 2008, which is 1 out of every 91 homes. Even with these high numbers, we are ranked just 16th in overall foreclosures in major metropolitan areas.
May 2008 foreclosures topped 7300.
Clu, the condo market in ATL is crazy. I have had friends try and sell their condo, and one took almost 2 years. Buckhead & Midtown look like Beijing with all of the cranes still going full throttle.
I did read an article the other day in the AJC about the majority of the foreclosures are happening right now in S. Fulton, and Clayton, and Dekalb areas. I think that is starting to spread into the more affluent areas.
I saw a listing today ITP and I thought it would have a price tag of about 800k and to my surprise it was priced at 550k. I think it was still over priced by 20% or so, but not as bad as some of these I see in town.
Jackie
Former condo building just went to apartments in my nabe after the developer went under and had to sell the asset.
Former wishing price for a 1 bed/1 bath - “from the low 300’s”
Former wishing price for a 2 bed/2 bath - “from the low 400’s”
Former wishing price for a 3 bed/2 bath - “from the low 600’s”
Rents advertised at 1 bed from $1550, 2 beds from $1825 and 3 beds from $2000. That is before you start negotiating. Also says “3 unique finish level available” which looks like you can avoid those nasty stainless steel appliances if you want. Health club, pool, shuttle to metro which is really very walkable, limited access parking, etc.
Sounds like the wishing prices were about 3 times the proper price if you even wanted a condo. So why is the place up the street so excited to advertise 2 bedrooms down to $350K from $432K?
The new rentals are at the corner of Montrose Road and Rockville Pike in Montgomery County, MD. Not too far from me. I’ll check them out when I need to think about a new lease this fall. MD will still be in bubble land for a while….
Wishing prices in Northern Va are everywhere. My estimation is that everything is still overpriced by at least $100K. Townhomes produced in the late 80’s and early 90’s in Woodbridge, Va (probably the epicenter of the Northern Va bubble) are still listing at $275,000. Trust me when I say that is way too much for these types of homes, especially in a terrible location like Woodbridge.
Manassass, VA is my pick for the most bubbleicious area in NoVA ….and I’m starting to notice more and more inventory in Fairfax…I’ve mentioned before on the blog that I go to George Mason Uni a couple times a week and I’m always amazed at the number of houses for sale in that area….there’s a cluster of 8 houses all for sale on a quarter-mile stretch on Roberts Road…most of these homes have been listed now for more than 10 months.
RE bulls in Canada have been fond of saying that RE prices in Western Canada could not fall because of its oil resources. Well guess what, Calgary and Edmonton, Canada’s oil capitals, were the first cities to start declining - over 10% in the last year, while as we all know the price of oil has increased sharply.
Next up - Bubble Country (British Columbia), where inventory is now exploding across the province.
Wouldn’t be at all surprised to think that the increase in price (not value) of real estate together with all the new construction of all real estate including commercial and public “investment” in Calgary and Edmonton over the past 5 or 6 years is actually greater than the money invested by the oil industry in the Alberta oilsands over the same time frame.
There truly is an asshanding in spades coming to these carpetbaggers and flakes that pumped and pumped and fed this mania and it is richly deserved. The MSM has either been totally complicit or totally duplicit in this whole thing as too have been the banks, lenders and politicians and they derserve to be held accountable on way or the other for their actions.
The Alberta “experience” has nothing on British Columbia or Toronto/ Ottawa et al though as least there are resources in Alberta. Can’t wait for the foxes to get into the henhouses in those places. Won’t be many hens left if any at all .
Here’s whats happening in my neck of the woods in Alameda,CA- the East Bay of San Francisco:
Some homes have gone pending. Two that I have seen have sold. Of those remaining in pending stages, they have been pending for a long time which makes me think that lenders are scrutinizing their client’s backgrounds more.
Even though a few have sold, a lot more have seemingly gone up for sale very recently. Three of these I know for a fact sold less than a year ago. Two are in rather upscale parts of the city. I’m also seeing a lot of frantic paint-slapping,which isn’t that unusual for the area.
Alltogether, prices have come down. Average homes were 600k+ last year. Now they’re 550k, with smaller ones down to 450-475k. Condos do not sell at all. I don’t think I’ve seen but maybe one or two sell. There seems to be a knee-jerk buying situation where I imagine many simply jump at the first sign of pricing weakness.
There are TONS of homes for rent. A few that were for sale, or sold last year. Rent has gone up, but the vacancy rate is pretty high. Condos also do not rent.
So, yes, it is starting to hit even white-bread, semi wealthy neighborhoods like mine in the Bay Area.
I’ve heard a couple of stories about people who bought in 2005 that are now letting their propery go into forclosure. BUT, before doing so, they are buying a smaller place while their credit is still good. So, it would seem that some of the sales occurring now are people downsizing before their current place forcloses.
Update from southern New Mexico:
The realtor quoted in yesterday’s post (http://www.lcsun-news.com/ci_9154448 )regarding Las Cruces is lying:
there are over 1800 homes for sale here and not 1500. This 1800 number does not include bank-owned & foreclosures, so there are actually more properties for sale than he is admitting.
The local real estate agents have been blindsided by the duration of the RE downturn. The fundamentals are ignored here (most people make less than $10/hour with no benefits) and so the local real estate industry preys upon out-of-staters to buy properties. Part of this preying involves the dissemination of false & misleading information to entice persons from high-dollar states to move here and pay much much more than they should for poorly-built properties. That’s why they love to say “Californians are moving here in droves” - which is a lie!
Most newcomers who come here to retire or to practice real estate come from the Northeast - Michigan, Minnesota, Indiana, Illinois (not Chicago), and other rust-belt states.
Californians (real ones, not transplants or transients who claim to be Californians): There are few of us here as opposed to the realtor ’s statement who said that’s where the newcomers are arriving from. Most of us came from the Bay Area or Central Coast and were transferred here against our will and we all plan to return.
Sorry for the tone of my post, but I get angry when realtors say that Californians are moving in…its all smoke & mirrors, folks. There are a *few* Californians in Alamogordo off Scenic.
I also get angry when realtors prey upon luring Californians based upon false & misleading information and which realtors want nothing more than to support a seller who wants $325k for a sh!tbox that they bought in ‘97 for 117k.
~MIsstrial
Is it possible to sue for predatory lending on a second home that is used as a primary residence? A family member of mine is trying to do this and get the lender to cut the loan in half. They also had the nerve to ask my parents to buy their house and rent it to them. My parents probably wouldn’t do that but may consider giving part of the downpayment. The loan would even be more that the house my parents are living in even with the loan cut in half. I’m hoping none of this would even have a chance of working out because of the suing part not working. Arrgh!! I’m pissed about this. Why wouldn’t they just rent a different house from a stranger?
Local agent says loss of over 750 job in the community will have a short term impact on real estate values
http://gazettextra.com/news/2008/may/04/gm-layoffs-will-create-short-term-struggles/
Weekly alternative newspaper has article about the Madison area real estate market, and subprime mortages. Not quite as shocking as if the Wisconsin State Journal had had the article, as the Isthmus usually has better coverage and writing, but a local newspaper is finally starting to write about overpriced Dane County housing prices.
Long story short, couple earning 40K combined pays 248K to build a house 30 miles outside of Madison. At lease one person in the couple works in Madison (30 miles, one-way). Immediately discover they cannot afford the mortgage and try to sell or get a roommate, and can neither sell nor get a roommate.
Refinance in one persons name, as one person had lost their job, and also pulled out 28K for bills. Couple splits up , foreclosure starts, but owner is able to have a short sale. After trying to sell, and finally having to do a short sale, the seller is convinced the new owners got the house for 100k under market value.
http://www.thedailypage.com/isthmus/article.php?article=22573
Although the official line is Madison Housing prices are doing just fine, there seems to be some fear out there.
http://www.thedailypage.com/isthmus/article.php?article=22574
Great find. I don’t have anything to point to besides the article Ben mentioned about downtown condos, but the “new” CapTimes seems to be less RE reverent as well.
Interesting that the RE prof doesn’t interpret 2 more years of falling prices to be a disastrous fall. Maybe the guy actually doesn’t equate returning to normal with a disaster.
BTW, I’m getting tired of running into the ads run by that investment/short sale group on CraigsList and I’ve had the misfortune of running across one of the agents they work with. Typical incompetent liar.
Almost forgot…
Problems mentioned at Lake Point Condominiums, located in an area of Madison undergoing revitalization:
http://www.thedailypage.com/isthmus/article.php?article=22483
Also, a townhouse development conversion (near McKenna and Raymond) from rental is rumored to be having problems selling. Actually, they were (at least three years ago) fairly nice places and pretty quiet, considering located on Raymond Road.
Also, in Ben’s post about LaCrosse this week. The people having trouble selling are on LOSEY BLVD - one of the most busy streets in LaCrosse. And I wonder why they’re having problems selling.
Thursday the front page of the Medford Mail Tribune was: “housing sales see another dramatic decline.” The accompanying stats show an average 10% median price drop across the various small markets in the county. 10% is a start, but wishing prices still dominate.
How do you spell slow learners?
From Atlantic City, NJ: Spent some time in the car today and heard host of local real estate show on radio begging listeners, who were “sitting on the fence” about buying, to call, please, and let him know what it would take to get them off “the fence.” I would have called and told him, “A realistic price,” but I don’t have a cell phone– and New Jersey now bans talking on them while driving (thank goodness). Well, off to belated cinco de mayo party; have a nice weekend.
Shoulda called anyway once you reached your destination and parked, even if the talk show was over, so that you could leave that comment.
From Chicago - I’ve been keeping track of property in the north shore areas of Evanston (sort of pseudo-north shore), Wilmette, Winnetka and Glenco. There are three realty sites that I have an email subscription to, and, based on my parameters, I get emails of new listings and price changes on the real estate in those areas.
Evanston - totally f*cked. There are way too many new condo developments that have sky high assessments. On top of that, the property taxes are outrageous. Prices are dropping, and there are several properties that were bought less than a year ago, and the owners are already trying to dump them on the market. Many times, the property taxes and assessments alone are the amount of another mortgage payment, therefore kicking out a slew of potential buyers.
Wilmette, Winnetka and Glencoe - I thought it would be fun to sign up for emails regarding all property types and all price ranges. The north shore is very hoity-toity and the homes are outrageously priced. What I find to be MOST alarming are the number of homes coming onto the market. These are homes/condos that are anywhere from $ 200,000 (older condos) to multi-million dollar digs.
Included in my little email alerts are not only new listings, but older listings that have had a price drop on the property. Obviously, some people must sell because they are relocating due to their job. However, I believe many others are distressed (or trying to get out while they can).
It escapes potential sellers that very few people can afford their house. Hell, they couldn’t afford their house! The small amount of people who could afford to buy their home are either a) not able to sell their current home or b) are smart enough to realize the market is in a free-fall and ’tis probably better to wait it out.
Every time I read where some moron says “now is the time to buy,” I just want to grab them, shake them and scream “it’s about affordability, dumba$$!”
“It escapes potential sellers that very few people can afford their house. Hell, they couldn’t afford their house!”
An oft-heard phrase during the race to the parabolic top in bubble prices was, ‘We couldn’t afford to buy our own house today.’
Me like
but this seller needs an attitude adjustment
http://dallas.craigslist.org/rfs/676330440.html
Go for it. If you dont give him one some one else will.
What do they mean “No City Taxes” ??
No city taxes mean the tax rate is *only 2.5%* instead of 3% however with gas prices where they are you will be paying a couple hundred bucks a month in fuel commuting to work/civilization.
Can anyone explain to me how the reconciliation of appraised value with market value works? For example, check out the comparison of sale price history with appraised value for a home up the street from us:
11515 FRESHWIND CT SAN DIEGO, CA 92127
Sold For:
$471,500
(03/10/2008)
Sales History
Property Tax
Date Price Appreciation
Apr 07, 1995 $25,000 –
Mar 29, 2002 $290,000 42.1%/yr
Feb 04, 2005 $645,000 32.3%/yr
Mar 10, 2008 $471,500 -9.6%/yr
Taxable Value
Land $408,000
Additions $249,900
Total $657,900
2007 Property Tax: $6,979
Source: Public Records
Appraised value = $657,900 versus latest sold value = $471,500; does anyone else sense a disconnect here?
Investment returns to this flipper-owned home:
Absolute loss = $471,500 - $657,900 = $186,400
Percentage loss = $186,400/$657,900 * 100 = -28 pct
I just was out on a Sunday drive, and noticed that 11515 Freshwind Court has a For Sale sign out front, festooned with a “Bank Repo” sticker. Talk about your bad signals! Perhaps the financing on the 3/10/08 sale fell through, though I find it quite odd that Redfin.com shows it as a sold home.
bubble update from Europe:
Today I watched another episode of a TV series about Irish buyers who are buying up homes in the less developed parts of Europe (mostly the Souther and Eastern parts). There are similar series about UK and Dutch buyers, the only difference is that depending on the home country they have a certain preference for specific areas in Europe. Just like their speculator friends from other countries the Irish specuvestors are all over the continent, buying up homes and driving up prices with cheap money (usually equity gains from the homeland). And despite the fact that the Irish home market seems to have started declining, the Irish are buying elsewhere with a vengeance.
Todays episode was about Hungary: the market is not as hot as it was five years ago, when homes were appreciating at more than 100% every year. It is now down to 30-40% yoy which means that within the few months these people need to fixer-up a property the price has already climbed 10-20% on its own, and profits on resale are huge (like 50-100% ROI). Older homes in the countryside are still very cheap by EU standard, in the 25-50K euro range; but I don’t doubt these homes are already out of reach for the locals. The only people who buy the remodeled properties are less sophisticated investors from foreign countries, or people who simply have so much money that they buy many properties in many EU countries (I know a few examples in my area, probably this is still a popular subject to spend your money on).
Still no sign that this EU housing bubble is going to implode - and how can it, with the ECB pumping money in like never before. It will probably stop when homes all over Europe are in the same price range (= outrageously expensive). Quite surprising that all this speculation continues while the carnage in the US is mentioned regularly in the news.
This one speaks for itself: http://www.maxspann.com/auc-Philadelphia-060708.htm
700k+ houses in Philadelphia up for auction 125k.
Note than none of the $700k+ houses have a $125k min bid. That deceptive advertising alone would keep me away. The RE douchebaggery never stops.
have = has
Prices are in a state of disarray for this new home community in Del Sur, near where we live (inside the 92127 zip code). The sign outside this new home development suggests a sale price of $1.2 million.
Here is information for one current listing and comparibles (current listings and recent sales).
15702 New Park Terrace, San Diego, CA 92127
Price: $626,050
Beds: 4
Baths: 3
Sq. Ft.: 2,465
$/Sq. Ft.: $254
Lot Size: -
Lot: Up to and Including .25 Acres
PROPERTY TYPE: Single Family Detached, Fee Simple
YEAR BUILT: 2006
STORIES: 2 Story
SUBDIVISION: DEL SUR
County: San Diego
MLS#: 076095967
Source: SANDICOR
Status: Active
On Redfin: 142 days
Unsold in 90+ days
Listing Price History
Date Price
Dec 21, 2007 $730,000
Feb 05, 2008 $699,000
Mar 10, 2008 $595,900
Apr 01, 2008 $626,900
May 07, 2008 $626,050
Closest listings of similar size and type:
$750,000
15670 New Park Terrace 0.05 miles
4 bd / 3 ba
2,613 Sq. Ft.
$839,000
15690 Via Montecristo 0.06 miles
4 bd / 3 ba
2,613 Sq. Ft.
$695,000
15661 Via Montecristo 0.1 miles
4 bd / 2.5 ba
2,475 Sq. Ft.
$709,900
8265 Chandler Hill Ct 0.21 miles
4 bd / 3.5 ba
2,843 Sq. Ft.
$763,900
8273 Austin Hill Ct 0.26 miles
4 bd / 3.5 ba
2,861 Sq. Ft.
Range: $695,000 - $839,000
Average: $281/Sq. Ft.
This home at $281/Sq. Ft.: $692,985
Closest homes of similar size and type, and sold within the past six months:
$553,657
15581 BRISTOL RIDGE TERRACE
Sold on Mar 13, 2008 0.19 miles
br / ba
3,000 Sq. Ft.
$700,000
15509 BRISTOL RIDGE TERRACE
Sold on Dec 27, 2007 0.27 miles
0 br / 0 ba
2,420 Sq. Ft.
$820,000
15500 NEW PARK TERRACE
Sold on Dec 21, 2007 0.27 miles
0 br / 0 ba
2,593 Sq. Ft.
$843,500
8278 Austin Hill Ct
Sold on Apr 25, 2008 0.27 miles
br / ba
2,949 Sq. Ft.
$750,000
15482 NEW PARK TERRACE
Sold on Dec 21, 2007 0.28 miles
0 br / 0 ba
2,478 Sq. Ft.
My oldest son and I drove around this hood yesterday. I took the impression that many of these nearly-new homes still sit vacant two years after construction, and that construction in the development is at a stand still, despite the fact that it is clearly unfinished. There are many vacant lots that look ready to be built, but no evidence that building is underway.
Here are a pair of listings priced very close to the exact same level, which exemplify the problem that falling new home prices pose for used home sellers. The same money will buy you either a 3br/2ba home built in 1973 or 300 more sqft in a 4br/3ba home built in 2006. Which would you prefer if they were giving these homes away for free?
17019 RALPHS RANCH ROAD, SD - Rancho Bernardo, CA 92127**
List Price: $499,888 - $549,888
Bedrooms: 4
Full Baths: 3
Partial Baths: 0
Square Feet: 2,112
Lot Size: N/A
Year Built: 2006
Listing Date: 11/12/07
On Market: 181 days
Type: SFR
Status: ACTIVE
MLS #: 076088713
11531 DUENDA RD, SD - Rancho Bernardo, CA 92127**
List Price: $499,900 - $499,900
Estimated Monthly Payment: $3,325
Bank-owned 3 bedroom, 2.5 bath, 2 story, 2 car garage, fireplace in family room, 1,812sq/ft home on a 9,352sq/ft lot. Large corner lot, upgraded bathrooms and kitchen. Covered patio and balcony off master bedroom. Fruit trees in backyard. Property is sold as-is.
Bedrooms: 3
Full Baths: 2
Partial Baths: 1
Square Feet: 1,812
Lot Size: 9,148 Sq. Ft.
Year Built: 1973
Listing Date: 05/05/08
On Market: 6 days
Type: SFR
Status: ACTIVE
MLS #: 086033030
I’m a sucker for fruit trees…
What I see is a lot of houses for sale that were bought last year, on sale for the same price. Last ditch effort to get out?
2nd home enigma
3.5 hours from DC a lot on Deep Creek lake $ 300k
5.5 hours in the Poconos there are tons of lots for $ 3500
>>WTF ?