Local Market Observations!
What do you see in your housing market this weekend? Condo problems? “A high-rise renovation project in central Phoenix that received high praise when it was converted from apartments to condominiums in 2005 appears headed for serious trouble. The Landmark Towers was built as Camelback Towers in 1963. Some who bought units in the Landmark say they were fooled into thinking the building’s guts also had been replaced - and now they are paying for that mistake.”
“Meanwhile, amenities originally promised to prospective buyers, such as valet parking, have disappeared. The exorbitant HOA fees make it nearly impossible to keep up with dues or sell a condo unit in Landmark Towers, owner Rene Kyl said.”
“Of the towers’ 238 units, 34 are in foreclosure, most of them owned by out-of-state investors, according to Mesa real-estate analysis firm Ion Data. Local analyst Jim Belfiore said Landmark Towers is by no means alone as a struggling condo project in the Valley.”
“‘The high-rise condo craze took off here when the market was peaking, and the products coming out today are struggling,’ he said.”
“‘They put lipstick on a pig,’ Kyl said.”
Fewer buyers? “Almost overnight, investment bankers and others on Wall Street have gone from being Manhattan’s most aggressive apartment buyers to real estate pariahs. As financial services companies continue to cut jobs and bleed billions of dollars, their employees have far less cash to spend on high-priced apartments, and very little optimism about taking a risk right now anyway.”
“Rick Wohlfarth, a Manhattan real estate broker for three decades, said that during the economic slowdown of the late 1980s, fewer people had Wall Street jobs and he could count on a more diverse pool of buyers. Now, his firm’s 18 agents are advising 60 clients who work in finance and are struggling to buy or sell apartments when market conditions have turned against them.”
“‘This downturn is more profound because it has hit the largest customer base we’ve had,’ he said.”
Builder difficulties? ” The Diamond Group has cut its asking price for a 2-acre lot in the city’s Morrell Park neighborhood in half. The lot has room for 20 new townhomes. Anne Arundel County home builder William Douglas Homes has four parcels of vacant land for sale in Maryland. Four years ago, selling empty land was an afterthought for the home builder.”
“And most lots are sitting on the market for months, a significant difference from five years ago when land would be under contract before it listed, said NAI KLNB broker Stephen J. Ferrandi.”
“‘Builders were very eager to acquire land for the sake of further developments and they got crazy,’ said Bernard Markstein, a senior economist at the National Association of Home Builders. ‘With the bust in housing, it has become a liability.’”
“The California-based development team Pacific Summit Partners entered the Austin market with a bang in 2005, investing more than $100 million in land from Southwest Austin to Liberty Hill in just two years, with plans to build thousands of homes.”
“Now financial troubles such as foreclosures and ballooning late payments have jeopardized or erased those plans. Since November, about two dozen suppliers have secured or attempted to secure scores of liens on properties owned by Pacific Summit and several affiliated partnerships and companies, according to claims filed with the Travis County clerk’s office.”
“At Aviara, a large sign advertising garden homes starting at about $300,000 and condos starting at about $200,000 still stands, but what should have been a busy construction site was quiet this week. More than a dozen houses and condos sit in various states of completion, and the development is secured behind a locked gate and patrolled by a security guard.”
“No one answers the phone number listed for the sales office. ‘I’m not resigned to the fact that I’ll have to write all of this off, but this is by far the worst collection problem in the 15-year history of my company,’ said Michael Patino, owner and president of High-Tech Carpets, which is owed nearly $175,000.”
New incentives? “It is a new tactic that some are considering, said Pat Skiffington, of Keller Williams Classic Realty in Orlando, Fla. He’s arranging for a prospective buyer to stay overnight in a downtown Orlando condo.”
“‘Buyers are being much more selective and there’s much more to choose from,’ he said. This is one way sellers can make their home stand out.”
“Even if the buyers decide they love the home after staying there, it might not be enough. Just ask Jeri Moran, a realty broker who had people stay over in her second home in the Blue Ridge Mountains in Georgia. The buyers love the home, but haven’t made an offer.”
“‘They’re sitting on the fence,’ said Christy Reece, her agent with Keller Williams Realty Mountain Properties, Blue Ridge, Ga. ‘The house is wonderful and they even fell in love with it further once they stayed there. But it comes down to people, in our market, thinking that prices will continue to come down.’”
“You might expect sellers to go the extra mile when marketing their properties in the midst of a downturn. And now one estate agent is throwing in free cars in a desperate bid to tempt buyers.”
“Clients who buy one of 247 newbuild flats in Newquay, Cornwall - worth between £150,000 and £1.5million - could drive away with a Smart Car, a Volkswagen, a Mercedes or a Range Rover.”
“Stuart Shield, branch manager at Bradleys estate agents in the resort, said it is the first time in his ten-year career that he has offered any incentives. ‘We have got an awful lot of buyers - but, very often, they go home, read about the latest ghastly story about the housing market and lose their nerve,’ he added.”
“Aryen Moore-Alston has found a new way to showcase homes in the Mid-South area. She will be cooking healthy dishes in the kitchens of homes currently on the market as her mother, Realtor Karen Moore, introduces viewers to the rest of the house during the TV show ‘This House is Cooking!’ that is scheduled to debut later this month.”
“The show is the two Realtors’ creative answer to selling homes in a declining real estate market. Moore-Alston’s food preparation will show potential homebuyers how the house’s kitchen will fit their needs, while Moore will showcase the rest of the home.”
2 legs smart, 4 legs lunch
“‘The high-rise condo craze took off here when the market was peaking, and the products coming out today are struggling,’ he said.”
“‘They put lipstick on a pig,’ Kyl said.”
at least he didn’t use the word “luxury”…
Somebody is about to reach their Austin city limits…
“The California-based development team Pacific Summit Partners entered the Austin market with a bang in 2005, investing more than $100 million in land from Southwest Austin to Liberty Hill in just two years, with plans to build thousands of homes.”
“Now financial troubles such as foreclosures and ballooning late payments have jeopardized or erased those plans. Since November, about two dozen suppliers have secured or attempted to secure scores of liens on properties owned by Pacific Summit and several affiliated partnerships and companies, according to claims filed with the Travis County clerk’s office.”
The market here on Boston’s North Shore appears to be holding up better than I ever would have expected..at least selling price wise, despite so many listings withering on the vine with slow sales volume and increasing foreclosures. Selling prices still seem way too high. I still can’t believe what those who are buying are paying.
Although, I have seen a few properties that look like decent deals, but these are in the $800k - $1.2 mill range. It’s amazing how much $800k gets you versus how little $600k gets you. People are talking like the junk selling for $300k - $400k are bargains. To me, they look more like they should be $150k…
Condos! don’t even get me started…..
Now, if that $750k home I’m watching would only drop to $600, I’d be all set.
A coworker is going through the process of buying a Condex in Winchester for about $400K. The only thing that could hold them back is if the bank says that the valuation doesn’t support the price.
If a place is close to the train, is in a good neighborhood and has schools, then prices are still high.
He told me that selling is really slow. Stuff that they’ve looked at for months are still on the market.
My coworker with the new place in Austin just commented on crime picking up in the area. He didn’t have any comments when I asked him about the real estate market down there. He did say that there were a lot of plans for condo towers but many of those might not happen.
“The only thing that could hold them back is if the bank says that the valuation doesn’t support the price”
..if they are lucky..
Why anyone would pay $400k for half a house is beyond me..
..not to mention all the pitfalls of being a “partner” in that sort of arrangement. I hate condo associations, but I’d take a full association long before a two person beotch fest.
For those of us that have never lived on the East coast, can you explain what a “condex” is?
I though BAHSTIN and NE would take the biggest dump, I was wrong
here in 22151 south of the big green we are off 20% from peak
Huh. I’m seeing a lot of declines in Boston.
Here’s the deal:
1. Go to Redfin
2. Enter the town, and include sales over the past 3 months
3. Do not constrain the search parameters
4. Download the data
5. Check the median listing price versus the median sold price
6. IN EVERY TOWN I HAVE CHECKED (at least 20), SOLD PRICE IS LOWER BY AT LEAST 20%. IN LINCOLN, IT IS LOWER BY 50%–not a small number effect, either.
7. Check the median listing $/sft versus the median sold $/sft.
8. IN MANY TOWNS I HAVE CHECKED (at least 20), SOLD $/SFT BY AT LEAST 10%. NOWHERE IS IT HIGHER, after removing one or two ridiculous outliers.
CONCLUSION: The action is all at the bottom of the range. As Professor Bear notes, this will cause the top to slide and compress the bottom.
Also remember that those who are buying are the most qualified buyers. They will be quickly exhausted.
Boston is coming down. You must have further patience. It is already down 20% from the peak.
Not an attack and please remember that I referenced Boston’s North Shore.
While I don’t know where Redfin gets their data, I’m using proprietary data from MLS. I get this data daily.
I’d challenge you to find a prime property in Boxford, Topsfield, Ipswich (except Ipswich Country Club), etc. that is truly down 20%. Yes, the key word is prime.
I doubt Lincoln is down 50%. If you are saying what was a $1,000,000 is now $500,000.
I do agree that the action is at the bottom of the market and Boston is coming down, just painfully slow.
I’m not saying that $1.5m has turned into $1.0m in Lincoln. I said the median list price is $1.5m, the median sold price is $1.0m.
THESE ARE NOT THE SAME HOUSES IN THE TWO DISTRIBUTIONS.
The houses that sold may have sold close to asking, I don’t know. All I know is that the present distribution of selling versus for sale is shifted to the left. This points to continued weakness.
This is confirmed anecdotally by realtors: the action is at the bottom end. Supposedly, those buying the properties would have qualified for double the money during the bubble. Again, anecdotally.
Since you asked:
Here is the data I have for Boxford from Redfin:
20 sales in the past three months (roughly April, May, June)
Median selling price: $587,000
Median/Avg. $/sft: $220/$223
126 presently for sale
Median listing price: $719,000
Median/Avg. $/sft: $238/$250
Median selling price is 18% lower
Median $/sft: 8% lower
Average $/sft: 11% lower
I have no idea what a prime piece of property is in Boxford, but whatever it is, it is coming down.
Thanks for focusing my attention on Boxford; it gets even more outrageous:
Of the 20 sales, *3* were above $719,000–the median of the listed houses.
Since $719,000 is the median list price, that means there are 63 houses for sale at or above $719,000.
So if 3 were sold during the peak quarter, that makes 12 for the year (and that’s generous).
63/12 > 5 YEARS OF INVENTORY OF HOUSES PRICED ABOVE $719,000.
Umm, that seems to be a problem.
Whoa baby! I got the chance to look at Ipswich this morning, Pen. It’s even worse than Boxford.
27 houses sold in the past 3 months
Median price: $344,000
Median/Avg. $/sft: $212/$219
81 houses for sale:
Median price: $649,000
Median/AVg. $/sft: $260/$296
Median selling price: *47% lower*
Median selling $/sft: 18% lower
Avg. selling $/sft: 26% lower
*2* houses sold for above $649,000
Figure 8 sell above median per year
40/8 ~= 5 YEAR INVENTORY OF HOUSES AT OR ABOVE $649,000.
Looks worse than Boxford to me. The sellers just don’t “realise” the declines they’ve already realized. TIMBERRRR!
Safe, I can confirm that trend in all areas of NY except NYC. The contract prices are much much lower than asking. I’m seeing this over and over again, area after area. If you’re a seller above $225k, YOU’RE SCREWED.
Actually, you said it yourself:
“It’s amazing how much $800k gets you versus how little $600k gets you.”
Check the data. You will be amazed. In Medfield, the median list price is ~$850,000.
Median sold price over the last 3 months (peak selling season)?
~$485,000.
Lincoln? median list price: $1.5 mil. Median sold price? 1.0 mil!
The action is at the bottom. This is devastating for the mid-to-top of the range. They will eventually drop prices, compressing the difference between the beautiful $750,000 and the clunker at $500,000. People will stretch and the $500,000 will go to $450,000, etc.
“It’s amazing how much $800k gets you versus how little $600k gets you.”
Anecdotally, I’ve noticed that a number of markets appear to have a point (or multiple points) where a relatively small increase in price yields a major increase in quality of inventory. It seems to be the point where what one might call “upper mid range” separates from the true “high end.” Not sure what to make of this phenomenon, but I’d guess that maybe at a certain price the pool of potential buyers thins out greatly, for financing reasons or otherwise. Unfortunately, in my part of CA, that “transition” range currently seems to be around $1.5-$1.7M. All in good time.
I just moved to Northern Virginia (20171). I’ve been driving around some of the suburb/exurb communities the past few weeks. I am absolutely staggered by the amount of empty commercial office buildings. These are fully completed and totally empty. Somebody has got to be taking a bath on these… and they are still building… It is very odd/creepy.
im in 22151 - seems like old times- wait till the MIL complex slows down- bama or McC it doesn’t matter
Our military spending will inevitably have to slow down, but then the slow down will catch us off guard, just as the BRAC of the 90s caught us off guard and like sitting ducks.
We’d be better off with a super sized BRAC applied to all government spending. It’s inevitable, with $400 billion spent on the war in IRAQ, well over $560 billion on the Prescription Medical Benefit, $300 billion bailout the Senate just voted in, and hundrets of billions of dollars on Medicare for the aging boomers coming up. There is no way that today’s 20-somethings, now currently Obama supporters, will remain leftist Democrats for socialism when they get into their 40s. Being young and hip and white by voting for a black liberal is nice when you are young, but when you move up in income ranks and get to the higher Obama tax brackets, you will regret your vote down the road. It’s called urinating in your own beer.
We’d be better off with a super sized BRAC applied to all government spending. It’s inevitable, with $400 billion spent on the war in IRAQ, well over $560 billion on the Prescription Medical Benefit, $300 billion bailout the Senate just voted in, and hundrets of billions of dollars on Medicare for the aging boomers coming up.
Bill,you seem confused. All of the above happened on Bush’s watch, with his approval. This is the Republican party in action.
Remember, the presciption drug bill,at Bush’s mandate,forbids collective bargaining for better prices on drugs. Again,the Republican party in action. The Republicans spend like crazed old men ramped up on Viagra…but they do not intend to pay for any of it. That is why the dollar is collapsing in value.
If we do not wish to descend to Argentinian fiscal chaos, someone is going to have to pay for all this. Bush, Cheney, et. al are leaving the country…what are your plans?
If you voted Republican, then you voted for this mess.
For government spending, its always better to borrow the money rather than tax. Its not like we ever have to pay it back, right?
Better to be fascist corporatists, I suppose, for all you golden parachuters? Don’t need to get lectured by geezer GOPs forsaken by their god(s), greed & guns.
“…when you move up in income ranks and get to the higher Obama tax brackets, you will regret your vote down the road. It’s called urinating in your own beer.
What’s it called when you vote for McCain so that you can still ‘party on’ while the deficit collapses the dollar, the job market and the entire economy? It’s called eating your own young.
Yeah it is odd/creepy. There’s a ton of building going on closer in, too. I can’t tell if they’re office or egaaads…luxury condos!
The funny thing is that a lot of them were empty when I moved here in 2002. For some reason, someone got the great idea to build more empty office space.
Charlotte’s real estate market might be like what late 2006 was like in bubble areas… people know it’s slow, but prices haven’t dropped much.
I stopped by Best Buy this morning to price a few things… the parking lot was 2/3 full, decent number of shoppers about. Plenty of traffic coming in and out of the mall.
The world is probably still OK for people here that ae not tied to the construction industry, or have Wachovia stock…
The world is probably still OK for people here that ae not tied to the construction industry, or have Wachovia stock…
Or people who don’t own any stocks, don’t drive cars, don’t import goods, don’t travel much, or who are in tourism related industries, I presume…
Here in central South Carolina sales are down 23% YOY according to local real-a-tors (S.C. pronunciation) Prices on the other hand have not dropped and several area projects are raising prices. Using the ‘ingenious’ marketing ploy of by now before prices skyrocket! No ones offering cars if you buy a place down here. We all know the Yankees and half-backs will keep our market strong…Right!
I can no longer listen to the insipid radio ads I have to change the channel, they are so poorly done. Their target market is surely simpletons at this point.
I started this thread in a local forum for Astoria, Queens.
http://www.astorians.com/community/index.php?topic=11208.0
I was interested in what the local folks thought about our obscene home prices. I looking to hear others thoughts, rather than pound them with all my knowledge and foresight gained from years on the HBB
That is why I didn’t respond a lot.
I found it that most people did think that Astoria was way overpriced. But many could not accept that the prices would go down to affordable levels. (it’s always some outside group that will keep buying at these prices).
Interesting reading none the less.
I was walking around Broadway yesterday seeing more residential towers just finished and more under construction in the UWS.
Between that and the stuff at the top of the Central Park in Harlem, and more 40- and 50-story things going up in Hell’s Kitchen and mid-6th, and the sh*tload of new tower construction both finished and un- in lower Tribeca, not to mention a new 70 story Gehry behemoth not out of the ground yet there.
That’s just Manhattan. There is, not exaggerating, easily an equal amount of new construction in Brooklyn alone. I’ve been looking at a topped-out 35-story concrete skeleton across the Hudson in Hoboken on the northern side of Pavonia/Newport for half a year.
It would be difficult for anybody outside of NYC to understand just how much vacant space is being set up.
“Rick Wohlfarth, a Manhattan real estate broker for three decades, said that during the economic slowdown of the late 1980s, fewer people had Wall Street jobs and he could count on a more diverse pool of buyers.”
Perhaps that’s because after prices crashed in the late 1980s, people other than investment bankers could afford to buy. They’re waiting.
I saw the highest level of distressed ads in last Sundays classifieds ever, here in Flagstaff. One open house was for two new houses in a very expensive subdivision. The ad said, ‘Reduced significantly to sell!!’ These are on a golf course and listed at $975k and $995k.
I also saw an ad for a rental I posted here about 9 months ago. In the country club area, there is a house asking $1,350/month. It’s a 4/3 with a pool. Available now.
‘Reduced significantly to sell!!’ These are on a golf course and listed at $975k and $995k.
What were they reduced from? Are there still buyers for houses in that price range? I know I’m a dinosaur but a million bucks is still a lot of money in my mind.
When Big Becomes Too Big, a Dream House Goes to Auction
http://www.nytimes.com/2008/07/12/nyregion/12auction.html?_r=1&ref=nyregion&oref=slogin
My first thought was, Who in their right mind needs 26,000 sq/ft.
My second thought was, Would a Hedge Fund manager really buy this elephant in today’s climate? Wouldn’t this show complete contempt for all the clients whose money they’ve lost? Greenwich is not Manhattan or the Hamptons. Oil rich foreigns don’t really buy there.
These folks sound like they disliked the place form the get go, and they built the damn thing!
If I had $25 million lying around and that amount of hubris, I’d buy a similar piece of land and build something just as nice for 20-30% less.
Ugh, what a monstrosity. Would make for a high-end insane asylum.
Coincidentally we were at dinner at a friends place tonight. After that we drove down to the river where a couple in their 60’s are building a 20,000 sq ft home. They have 5 acres that they paid $ 7 M for. Apparently they are Baptists so it’s not like they are going to be throwing a lot of wild parties…
Yesterday’s junk mail was interesting. In among the Penny saver & pizza ads was a one page flyer for “Save up to $125K” at the Stadium Lofts in Anaheim. Near Angel Stadium and not far from D-land, a big industrial/commercial area called the Platunum Triangle is being developed into a residential/shopping/’lifestyle’ area.
58 ‘urban homes’ are offered at up to $132K off the pre-event price. The cheapest loft/1 ba was $341,400, now $242,909 = 29% off (still overpriced - I used to live in Anaslime, couldn’t wait until my 1 year lease was up). The most expensive 3/2 was $535,300, now $402,966 = 24% off.
One day only, 7-26-08, ‘no camping out before 6 am’. Yeah, I’d like to meet that first idiot in line.
This cheesy flyer smacks of desperation in selling these homes. I’m more likely to use one of the pizza coupons……
Report from southern New Mexico:
Recently, I went on a property search blitz around town (88011,12)- in Sonoma Ranch, entire subdivisions have been halted in various stages of development. Some have all of the streets and utilities put in but building has progressed no further. Some have partially-built homes where construction stopped mid-build. Others have grading done and nothing else resulting in large dust-devils forming off of the 70 when the wind kicks up.
Being that its New Mexico, apparently there are no regs relative to dust-abatement and so sand and dust cloud the horizon for miles.
Hundreds of vacant homes/condos for sale, many are specs owned by local realtors. This situation is being hidden from buyers by the lack of For Sale signs on properties.
Some spec homes have been put on the rental market with disastrous results for owners: so many rentals which is forcing rental prices down or at best case - to level off. Home prices have a ways to go, imo, to fall to the level of local wages. Most sellers has a higher estimation of the worth of their property - they will learn.
I went to tour one house and I left within 2 minutes due to the grit and sand inside the residence from the dust storms.
In Picacho (88007) building of custom homes and subdivisions continues probably by builders with some access to loans to continue the dog and pony show. I imagine that the fall-off in construction elsewhere resulted in lower costs for materials and labor which the builders are counting on to lower their loan exposure. Too bad for them because the homes are still overpriced (think desert-style McMansions on the outskirts of town surrounded by poverty like the Central Valley of CA).
One big problem for the builders:
As prices fall elsewhere in locales such as the entire state of Colorado, Sedona and Prescott AZ, Las Vegas, Flagstaff, PHX, Tucson, and even Cali (!), budget-minded buyers will no longer have to consider Las Cruces as during the past run-up. Falling prices in better locales with a recognizable infrastructure and better medical care will enable buyers to seriously consider areas that were previously off-limits pricewise.
Heck, that’s what I’m going to do. Why buy in a low-grade area when I can buy in Sedona (which also features that Santa Fe-style architecture) and get the same thing?
~Misstrial (who’s choosing to continue renting)
In Ventura CA area:
The most garage sales I have ever seen. Every telephone pole and stop sign has a Garage Sale sign. Also, I see many of these area wide or neighborhood wide garage sales sponsored by a Realtor.
I think people are trying to raise cash! When you see so many Estate or Garage Sales junk is trying to be converted to cash. Cash is King?
Report from Fargo, ND.
The Red River Home Guide - July 2008, Vol 4 Issue 2
Q: Hasn’t the subprime crisis cut off the flow of mortgage money for qualified borrowers?
A: If you believed the headlines or the endless drum beat about subprime lending on cable television news, you would think that the pot of mortgage money has dried up completely. Nonsense! The vast majority of home buyers are seeking conventional, conforming mortgages at or below $417,000. These loans are purchased by Fannie Mae and Freddie Mac, both federally chartered organizations…. … And Congress ealier this year passed a stimulus package that will allow Fannie Mae and Freddie Mac to purchase more mortgages in the high-cost markets through the end of 2008.
Q: In today’s housing environment, isn’t the smart move to keep waiting for prices to fall even further before venturing into the housing market?
A: The current housing price correction is helping to restore affordability. In parts of the country where the housing boom was not as strong, values have remained on the rise. The bottom line for most existing home owners is that their homes will be worth significantly more than they paid for them once the market begins to recover - a process that is expected to begin later this year. The repercussion for prospective buyers is that the market has provided some breathing room from the sky-high prices prevailing a year or two ago.
We are truly blessed to live in the Fargo/Moorhead area. Our economy is thriving and the housing market is stady and growing. Remember that real estate markets are all “locally” driven and that the National news is no indication as to what a home is worth or how your home will sell in the Red River Valley. Our market is doing great and there’s no better time than Spring to check out what opportunities await.
http://www.redriverhomeguide.com/emag/Catalog_new.swf
http://www.redriverhomeguide.com/realestate
On the other hand, this house has been on the market for almost 3 years and has come down from 294K to 264K.
http://tinyurl.com/6kb7t9
And this condo has been on the market for about 1 year. The price just reduced from 375K to 349K. One of the rooms they call a bedroom doesn’t have a closet. It is owned by a lady that ran a cooking show out of her kitchen on a local station and moved out of the area.
http://www.whatscookingcondo.com/
Wow, so there are condos in Fargo, ND. That list for 350K. Amazing what you learn on this blog.
But wait, the issue is dated July 2008 and they say there’s no better time than Spring to check out what opportunities await? No rush, then.
I’m curious, what would you think is fair value on the What’s Cooking Condo?
I am not a condo fan so you won’t get any sort of comp out of me. It is close to a large and popular park, downtown Fargo and the historic residential neighborhoods but adjacent to some large older apartment buildings, somewhat neglected smaller rentals and is on the main floor of the building. The kitchen is its main selling point and although nicely done, the rest of the rooms aren’t anything special and are small. With the $225 monthly condo fee and 2.3% property taxes, I can’t believe anyone would purchase it without a major price reduction.
A couple of years back, a buddy and I sent looking through Realtor.com to see just how far the Bubble had spread. When we discovered overpriced condos in North Dakota, we realized the situation was critical… unreal!
Report from Louisville,KY
Just heard on the radio a builder is offering Free Car with Home Purchase.
I moved to Louisville area last year and have talked to few Realtors and most of them say the prices have not gone up a lot but only 50% in last three years.
My next question is always the same, are people making more money and have never got an answer.
The latest offeing of the free car is clear indication that there is increase in supply of the houses
When you see them offering a Free Home with Car Purchase, we might have reached the bottom…
“Moore-Alston’s food preparation will show potential homebuyers how the house’s kitchen will fit their needs, while Moore will showcase the rest of the home.”
What if I need to see how the bathroom fits my needs? will they put a Realtor(tm) in the shower?
The crap these realtards come up with just keeps getting more and more pathetic.
Dont know if interested in N Ohio flyover country but here’s my view;
Cuyahoga county locusts warn all divisions of budget cuts, social services not exempted, this with tax increases passed at every election in the past 5 years. Big expose on cronies hired en mass.
Traffic continues to thin, gas prices stuck under $4/gal. (usu pay 3.869).
No one talking about vacations anywhere, even to local theme parks.
Grocery store lines thin to nonexistent, but, people still be out shopping, more so weekdays than weekends.
Mfg still taking a hit in this area ( auto dependent) but employer says oil patch heavy mfg is going nuts and set to accelerate; asks if I’d increase my hours to near full time.
Son’s mom has two neighbors in forclosure, both with thousands in unpaid association fees and dues; happy he didnt buy one of the many for sale in her development. Says he’s increased his silver purchases this week; he “discovered” that silver seems to track the price of oil. Coin dealer says increasing numbers of older people selling him small amounts, then return to with big collections (maybe because they’re just now finding out that he’s available to buy or sell). Has customers with large standing orders for both Ag and Au. Thinks they’re accumulating and sending Au far away, probably mideast.
Dinner last night, inexpensive italian restaurant, smallish line, 10 minute wait. Upon leaving, son waxes economical …” I’ve never seen so many 80k cars in this parking lot… must be adjusting their lifestyle.”
Uneasy feeling, similar to that when a large, subsurface thing brushed by me one evening off Madiera Beach . Maybe I would rather be somewhere else, but it will take some time to get there.
Staying overnight in certain desirable areas could be a free overnight stay to start your vacation. I’m beginning to like this incentive more and more.
BTW our favorite station (tongue in cheek) HGTV has a show called Sleep On It. Potential buyers stay overnight in a house they may want to buy.
New incentives? “It is a new tactic that some are considering, said Pat Skiffington, of Keller Williams Classic Realty in Orlando, Fla. He’s arranging for a prospective buyer to stay overnight in a downtown Orlando condo.”
“‘Buyers are being much more selective and there’s much more to choose from,’ he said. This is one way sellers can make their home stand out.”
“Even if the buyers decide they love the home after staying there, it might not be enough. Just ask Jeri Moran, a realty broker who had people stay over in her second home in the Blue Ridge Mountains in Georgia. The buyers love the home, but haven’t made an offer.”
“‘They’re sitting on the fence,’ said Christy Reece, her agent with Keller Williams Realty Mountain Properties, Blue Ridge, Ga. ‘The house is wonderful and they even fell in love with it further once they stayed there. But it comes down to people, in our market, thinking that prices will continue to come down.’”
I dunno. Sounds kinda scabies-like if you ask me.
I bet this Orlando condo ends up on the Dirty Jobs cable program.
You can get scabies and bed bugs in your standard hotel/motels.
I’ve heard that lice, scabies, fleas, crabs and bed bugs are a significant problem out there on the West Coast. Same thing in NYC.
Just opened my bank statment from WaMu (been a customer since it was called Home Savings) and inclued was a flyer. The flyer from WaMu and states the following:
WaMu Home Loans
Refinance. New home.
Second home. (Bold lettering large font size)
This summer, make your dreams come true (bold once again)
Whatever your goals, WaMu has a variety of loan products at competitive rates and a team of experienced Loan Consultants who can help you realize your dreams.
We make it easy no matter what your needs (bold once again).
• Taking out cash on a refinance
• Looking for a better rate or more flexible terms
• Buying a new or second home
The last blurb is surrounded by a box
Tell us what’s on your mind we’ll make it happen (bold once again)
Then it gives a phone number, web page address, or Come by any WaMu location (all in bold).
Doesn’t look like getting a loan is that difficult.
New billboards in Austin advertising home equity loans.
http://tinyurl.com/6panc6
“Front yard packed with trash, confrontation caught on tape”
By 3TV Phoenix, AZ
When I saw the teaser for this spot on Phoenix Channel 3 last night, I said to the wife that it was probably a pissed off foreclosure situation. They lead with this yard piled high with garbage and other jetsom, pissed off neighbors and the TV reporter asks the “owner” why their yard has so much garbage piled around. [I had to wait an hour for the full story to air]
[An hour later] At first the “owner” tries to run away from the TV crew, but then the garage door goes back up and this scrawny chav (as the Brits would say) chick in her bikini top, track pants and bad blonde-dye job comes down the driveway waving her arms “get off my property–get off my property!!” After bystanders/TV crew inform her that they’re standing in the road she backs down and–drum roll please–says that they’re in foreclosure. It’s a hoot. [The reporter mentioned to the audience that this house had, in fact, been bank-owned for over a month--making the whole "get off my property" thing kinda moot.]. A real peach she was, too–same with her scumbag boyfriend/husband/son who tries to cop an attitude with the reporter. Of course they had an unfenced, nasty pool in the backyard, too. I’m guessing they’ll never clean up the mess and just slink out of town (back to Kayntuckee?).
Got pork rinds?
I went to Joe Pool lake in south DFW area with my brother. They have built like crazy out there in the past 5 years. My brother lives in Denver and wanted to see what the new houses look like in this area. I turn into a development that is still being built out and the first house is having a garage sale. It was the “everything must go” type of garage sale. I was surprised because I know they have strict HOA’s around here.
Then I saw that they were selling the appliances as well. I figure they will be gone by tomorrow night.
“‘There’s a glut of condominiums downtown,’ said Mark Goldman, a mortgage broker with the local office of Windsor Capital Group Inc. and lecturer at San Diego State University. ‘A lot of condos are going into rental supply and that’s creating some softness in the market.’”
Yeah. The same way not having your parachute open causes a bit of bruising on impact.
I’m interested.
I’m seeing the same kind of behavior here in Chicago. LOTS of expensive vehicles parked outside of discounters/cheap restaurants, undoubtedly driven by folks who wouldn’t have been caught dead frequenting such low-class establishments 1-3 years ago.
I buy about half of my groceries at Aldi’s, that dirt-cheap company out of Germany. Damn proud to, too. I’ve done so for about 5 years….I’ve saved about $45-60 a week by doing so. During the past year, I’d estimate that the number of shoppers at Aldi have doubled since 2006, and several check-out lines are open and busy all day long rather than what was just 1-2 check out lines.
Customers there are about split demographically - about 35 percent black, 25 percent Hispanic and the remaining 40 percent white.
Two years ago, it was maybe 55 percent black, 40 percent Hispanic and 5 percent white.
Seems that paying $1.29 for two toothbrushes instead of $3.25 for one is catching on.
Nearby Dollar stores are mobbed, too. My six-pack, full-size Dial soap deals at $2.19 are always sold out now, dang it! Going to Jewel to pay $4.89 is out of the question.
Aldi’s is first on my groceries-etc. shopping trek; much more professionally dressed shoppers there than 10 years ago. Also notice that fewer items in people’s carts lately at any of my markets; food purchases just might be curtailed along with gasoline. Although, might be people who had been eating out now buying an evening’s meal for 1/2 the cost of sushi. Have experienced prices in all are ticking up…milk, cheese, cola, staples.
Went over to Pensacola today from New Orleans,and not sure what to make of it,but roads were absolutely clogged with the largest SUVs’ there are..Escalades, Chevy z21’s, Navigators etc..Mostly had Texas plates ,and only one person driving…Burn the oil day? I could not figure it out…As far as RE, Lots of commercial signs sale or lease..Empty malls.
Also the dirth of Reverse Mtg. commercials…is that the new scam model?
dearth or plethora?
Sorry that was Plethora…as in Robert wagner, WellsFargo,WWCapital etc etc.
Oil money is good right now!
Santa Barbara statistics:
CORT REPORT ~ JUNE 2008 CORT REPORT ~ JUNE 2008 CORT REPORT - YTD THRU JUNE 2008 CORT REPORT - YTD THRU JUNE 2008
South Santa Barbara County
Month Number of Sales Average Sales Price Median Sales Price Number of Sales over $1 Million
June 2008 126 1,564,009$ 947,000$ 62
June 2007 157 1,722,937$ 1,179,000$ 88
June 2006 165 1,550,243$ 1,030,000$ 86
June 2005 252 1,623,809$ 1,000,000$ 128
June 2004 263 1,373,005$ 900,000$ 110
June 2003 213 932,617$ 663,000$ 50
Santa Barbara
Month Number of Sales Average Sales Price Median Sales Price
June 2008 63 1,130,494$ 875,000$
June 2007 86 1,657,390$ 1,212,500$
June 2006 83 1,203,114$ 1,090,000$
June 2005 127 1,639,094$ 970,000$
June 2004 109 1,194,417$ 925,000$
June 2003 101 993,123$ 675,000$
Goleta
Month Number of Sales Average Sales Price Median Sales Price
June 2008 31 909,935$ 735,000$
June 2007 34 985,662$ 837,500$
June 2006 43 862,721$ 875,000$
June 2005 58 951,836$ 915,000$
June 2004 85 838,082$ 845,000$
June 2003 63 679,880$ 625,000$
Carpinteria
Month Number of Sales Average Sales Price Median Sales Price
June 2008 6 886,500$ 610,000$
June 2007 12 914,667$ 662,000$
June 2006 12 1,690,617$ 1,039,500$
June 2005 20 1,316,850$ 925,000$
June 2004 17 772,088$ 700,000$
June 2003 20 563,350$ 579,750$
Montecito
Month Number of Sales Average Sales Price Median Sales Price
June 2008 16 3,395,938$ 2,600,250$
June 2007 20 3,499,650$ 3,030,000$
June 2006 18 3,624,646$ 2,200,000$
June 2005 29 2,734,880$ 2,500,000$
June 2004 33 3,008,695$ 2,095,000$
June 2003 23 1,666,782$ 1,400,000$
Isla Vista
Month Number of Sales Average Sales Price Median Sales Price
June 2008 1 2,000,000$ 2,000,000$
June 2007 1 8,990,000$ 8,990,000$
June 2006 2 975,000$ 975,000$
June 2005 5 1,225,000$ 1,150,000$
June 2004 2 1,299,000$ 1,299,000$
June 2003 1 680,000$ 680,000$
Hope Ranch
Month Number of Sales Average Sales Price Median Sales Price
June 2008 4 3,705,500$ 3,872,500$
June 2007 4 3,146,250$ 2,900,000$
June 2006 2 3,790,000$ 3,790,000$
June 2005 2 4,249,000$ 4,249,000$
June 2004
June 2003
Summerland
Month Number of Sales Average Sales Price Median Sales Price
June 2008 5 4,232,000$ 1,850,000$
June 2007 0
June 2006 4 5,702,500$ 3,205,000$
June 2005 7 2,398,214$ 2,075,000$
June 2004 12 3,386,875$ 1,316,250$
June 2003 3 1,383,833$ 1,076,500$
Unincorporated Area
Month Number of Sales Average Sales Price Median Sales Price
June 2008 0
June 2007 0
June 2006 1 960,000$ 960,000$
June 2005 4 2,192,375$ 2,125,000$
June 2004 5 803,800$ 659,000$
June 2003 2 537,500$ 537,500$
South Santa Barbara County
Month Number of Sales Average Sales Price Median Sales Price Number of Sales over $1 Million
Jan - Jun 2008 694 1,721,495$ 949,500$ 331
Jan - Jun 2007 922 1,952,330$ 1,094,750$ 498
Jan - Jun 2006 870 1,768,394$ 1,062,500$ 471
Jan - Jun 2005 1176 1,594,590$ 1,005,000$ 599
Jan - Jun 2004 1328 1,276,905$ 867,750$ 310
Jan - Jun 2003 1058 1,009,685$ 689,000$ 288
Santa Barbara
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 307 1,203,315$ 930,000$
Jan - Jun 2007 462 1,409,480$ 1,000,000$
Jan - Jun 2006 425 1,290,388$ 1,055,000$
Jan - Jun 2005 566 1,270,542$ 1,000,000$
Jan - Jun 2004 668 1,099,776$ 890,000$
Jan - Jun 2003 510 965,649$ 720,000$
Goleta
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 183 978,480$ 720,000$
Jan - Jun 2007 185 1,026,858$ 826,000$
Jan - Jun 2006 205 1,258,461$ 875,000$
Jan - Jun 2005 281 1,070,998$ 850,000$
Jan - Jun 2004 320 913,467$ 758,000$
Jan - Jun 2003 285 697,005$ 623,000$
Carpinteria
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 44 1,323,960$ 747,500$
Jan - Jun 2007 65 1,753,046$ 880,000$
Jan - Jun 2006 50 1,305,380$ 965,000$
Jan - Jun 2005 81 1,295,765$ 840,000$
Jan - Jun 2004 107 913,467$ 625,000$
Jan - Jun 2003 103 729,723$ 560,000$
Montecito
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 120 3,866,133$ 2,975,000$
Jan - Jun 2007 150 3,935,169$ 2,700,000$
Jan - Jun 2006 128 3,370,348$ 2,372,273$
Jan - Jun 2005 161 3,183,233$ 2,224,000$
Jan - Jun 2004 170 2,731,965$ 1,912,500$
Jan - Jun 2003 119 2,158,339$ 1,600,000$
Isla Vista
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 11 1,024,591$ 815,000$
Jan - Jun 2007 9 1,434,444$ 1,450,000$
Jan - Jun 2006 13 5,763,269$ 1,537,500$
Jan - Jun 2005 20 3,384,975$ 1,175,000$
Jan - Jun 2004 9 2,839,444$ 1,200,000$
Jan - Jun 2003 6 706,166$ 691,000$
Hope Ranch
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 12 3,318,667$ 3,137,500$
Jan - Jun 2007 20 4,261,400$ 2,874,500$
Jan - Jun 2006 8 2,997,313$ 3,125,000$
Jan - Jun 2005 15 3,134,466$ 2,700,000$
Jan - Jun 2004
Jan - Jun 2003
Summerland
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 14 4,901,643$ 1,780,000$
Jan - Jun 2007 28 5,319,429$ 2,567,500$
Jan - Jun 2006 31 3,897,161$ 1,545,000$
Jan - Jun 2005 38 2,640,881$ 1,248,500$
Jan - Jun 2004 38 1,974,644$ 894,000$
Jan - Jun 2003 25 1,168,420$ 1,050,000$
Unincorporated Area
Month Number of Sales Average Sales Price Median Sales Price
Jan - Jun 2008 3 1,443,333$ 1,550,000$
Jan - Jun 2007 3 2,531,333$ 2,375,000$
Jan - Jun 2006 10 1,571,650$ 1,713,250$
Jan - Jun 2005 14 1,616,678$ 1,457,250$
Jan - Jun 2004 16 1,058,062$ 660,500$
Jan - Jun 2003 10 1,166,800$ 1,350,000$
1) There has been little evident change on the SD County MLS for several months now. Inventory has remained mired in the 18-19K range all summer, and list prices have not moved by much, either, so far as I can tell.
2) There is little evidence of real estate sales activity in my hood, save for the ever-present sign twirlers, still flipping signs that say “Villa Taviana — Condos Selling” about three years after the condo conversion market went to hell.
3) My son had a birthday party last night at Gyminy Kids, a local gymnastics facility. Two years ago on a Friday night, the place would have been crammed full of kids, but other than my son and his eight or so friends, the place was almost empty (maybe eight other kids were present in a large — 200,000 sq ft or so — gym floor). My wife and I asked one of the staffers about this; my wife suggested that perhaps many families were on vacation, and in typical knee jerk fashion, I suggested the economic slowdown was at fault. The staffer acknowledged that their business was off by 40 pct year over year thanks to local economic conditions.
4) Took my sons out to our favorite lunch spot today. There are maybe 20 tables inside and out, and our table was the only one that was occupied. I have the sad feeling our occasional trips to favorite restaurants may not provide sufficient stimulus to keep them afloat in a real-estate-dependent economy where many households did not bother saving a dime for a rainy day.
Just in the past three weeks or so, I’ve noticed a rash of restaurant closings.
We went to the Olive Garden last night, and it was definitely less busy than usual, though it wasn’t quite dead.
Traffic is much lighter!!!! Usually in the summer, the south-bound 5 is like a parking lot all day, every day. This summer, we’ve made a number of trips, even during rush hour, and have yet to encounter a traffic jam. The other afternoon, it was weird, as the freeway almost looked abandoned. VERY unusual.
We took DD to the Rainforest Cafe yesterday for lunch. The place was less than half full at noon. Its been a few years since we’ve been there, but from what we can recall, that was the first time we ever got in without a wait.
Also, prices were only a smidge more than Applebees, where IIRC, they used to be noticably higher.
I was slumming on Trulia this week…I couldn’t contain myself and responded somewhat politely to some questions.
1) Combination realtor/mortgage broker asking and answering why it’s a great time to buy
http://www.trulia.com/voices/Market_Conditions/Is_this_a_good_time_to_change_residences_or_make_a-45937–
2) Local seller wonders why fsbo home is not selling, given it’s priced competitively (short answer - it’s not)
http://www.trulia.com/voices/Home_Selling/Do_you_think_realtors_in_Madison_won_t_show_homes_-44315–
But the most humiliating comment was when I was called (gasp) a realtor….the humiliation
http://www.trulia.com/voices/Home_Buying/How_many_subdivisions_are_there_in_the_area_borded-42771–
Note to Mikey on HBB (also from Wisconsin) - sorry I wasn’t trying to take over your identity on another board.
In that last link, I was shocked by Billy - who insults you for seeking information. More or less saying : If you learn what is going on, you will never buy, you loser. HE must be a realtor, otherwise why the vitriol?
The area in question has been heavily built up in the last ten years and I still can’t figure out how many subdivisons there are. Just this week I discovered another one.
There are lots of resales in the area at prices similar to five years ago as well as many foreclosures. Guess that’s what happens when you only but 1K down on a 250K home in order to move in.
Probably very few of you are interested in Anchorage RE, but we have some of the most die-hard Kool-Aid drinkers in the country. There is very little good information out there, and that was how I initially got interested in Ben’s blog. Unfortunately, our metro area of nearly 1/2 million is overlooked on most sites that I trust because we’re considered a marginal market.
If you have 2 minutes, I linked an infomercial at the bottom left of the RE homepage of a spokesmodel interviewing a shill from the same company as an “expert” on the market. The fact that the slowdown hit hard in Fall ‘07 doesn’t keep her from using stats that are nearly a year old to justify throwing your money away.
Video: Why Now is a Good Time to Buy
The Realtor who sold us our house in 2002 stopped sending us marketing letters every month like she was 2006-2007, but today she sent us a slick flyer about how to plan for the future. It explains compound interest, how to make a budget, choosing the right IRA etc. Just one little sidebar on one side shows median house prices across the country, with this little message:
D’oh! Now they tell us? (How about for a Humvee?)
She will be cooking healthy dishes in the kitchens of homes currently on the market as her mother, Realtor Karen Moore, introduces viewers to the rest of the house during the TV show ‘This House is Cooking!’ that is scheduled to debut later this month.”
Stay tuned for the FB act-of-desperation sequel, “This House is Burning.”
Sure have been seeing a lot of house fire bits on the Phoenix-area TV news. Sign of the times, eh?
I crossed the border at the Thousand Islands yesterday and got off the highway on Wellesley Island to walk the dog. I was amazed to see for sale signs in front of more than half the cottages.
LOL, there is a rabies outbreak on the island.
On my home (boating) front, Seneca Lake is dead. I could only see two boats out last night, and the weather was perfect.
I’ve been passing through Temecula, CA for work. This town was pleasantly nonexistent 12 years ago. Now it’s all pink stucco tract homes and strip malls.
Lowes is dead quiet. Housing developments under construction on the outskirts have shown no activity in the past three months. The town is still bustling, but Starbucks is empty and the McDonald’s is hopping. I have a fantasy that Temecula will melt back into the ground and the valley will return to its former loveliness, but these stucco boxes have befouled the area for generations, exodus or not.
Will be spending the next couple of weeks working in Sierra NF. Hovnanian and Toll haven’t gotten their greasy fingers in there yet, and marmot developments seem to be thriving.
Who says they aren’t making any more land around San Diego? My wife was just noting 2 acre parcels for sale at $600,000 on up in areas that were burned last fall. One of the adds notes that the pool and tennis court are still present on the lot (but presumably not so the house).