Sellers Are Wondering Why Buyers Aren’t Competing
The Daily Commercial reports from Florida. “Real estate watchers say new home construction appears to be coming back strong this year, and the evidence is in the myriad subdivisions that are sprouting fresh homes in recent months. A Sept. 19 statement from D.R. Horton, owner and homebuilder of the new 55-lot Brookshire subdivision in Eustis, said 14 homes were under construction and were planned to be ‘ready for move-in very soon.’ At that time, just one home had been sold. Lake County Property Appraiser Carey Baker said the fact that homes are being built on speculation is a good sign. ‘They are moving full steam ahead and building homes just anticipating that they’ll be able to sell them, Baker said.”
The Herald Business Journal in Washington. “Pending sales for Snohomish County homes jumped 15.48 percent in September compared with the same month of the previous year, according to the Northwest Multiple Listing Service. One novelty of the market is the number of international buyers, especially from China, who are picking up prime homes in the Puget Sound area particularly east of Seattle. ‘The influx of buyers from China is very real,’ said Gary O’Leyar, broker for Prudential Signature Properties in Seattle.”
“Dick Beeson, a real estate broker in Tacoma and a Multiple Listing Service director, said he believes that the China-Washington connection will continue. He said he believes that the Vancouver, B.C., has grown too expensive so Chinese buyers are looking south to the Puget Sound region. ‘Like the San Francisco Bay Area, Vancouver was their location of choice,’ he said, adding that skyrocketing values in those cities have some of them looking elsewhere to buy.”
The Star Tribune in Minnesota. “Higher house prices beckoned sellers to list their homes in the Twin Cities area last month. Buyers weren’t as plentiful. Many sellers are left wondering why buyers aren’t competing for house. ‘Our expectations were to see a sold sign on our home within three months of listing,’ said Don and Jen Mohs, who put their house in Chaska on the market in mid-August. After more than 40 days on the market, they’ve had plenty of showings, but still no offers. ‘We sense a lack of urgency from potential buyers, due to a greater number of houses on the market this season to choose from,’ Jen Mohs said.”
The Oregonian. “The way the numbers tell it, metro home prices are nearly back to where they were at the height of the housing bubble. But tell that to Dan Gering, who sold his house in Tigard this week – after dropping the price three times. ‘Everyone around us was saying the market was hot,’ he said. ‘I was stunned.’”
“When Gering listed his house in the 97223 ZIP code in May, several real estate agents he consulted expressed high hopes. But when they threw open the doors for the expected throngs of waiting buyers, they saw only a trickle of interest. ‘It was not as hot as we were thinking it was going to be,’ he said. ‘I never felt like it was a seller’s market. Ever.’”
The News & Observer in North Carolina. “The average price of homes that sold during the third quarter rose 3 percent to $257,300. But there are signs that pricing in some areas of the Triangle may be softening. The percentage of new home listings that have had at least one price reduction is now 24 percent, up from 17 percent during the same period a year ago. Stacey Anfindsen, a Cary appraiser who analyzes MLS data for area real estate agents, said a big run-up in the average list price of new homes over the past three years may be a factor. The average list price of new homes is now $367,900, up from $309,800 in 2011.”
“‘That could be where we’re starting to see some of the softness come into it,’ Anfindsen said.”
The Capital Gazette in Maryland. “As the real estate and mortgage collapse of 2008 fades into history, state officials and real estate agents point to the decreasing number of new foreclosures and default notices as evidence of recovery. But thousands of bank-owned properties sit empty in neighborhoods across the state, a backlog of unsold properties that will eventually make it into Maryland’s housing market at a discount.”
“Maryland has just recorded the largest influx of ‘real estate owned’ properties in its history. Housing experts say the deluge is linked to Maryland’s efforts two years ago to push back against foreclosures — a drive that delayed foreclosures and allowed mediation for many properties. It helped homeowners, but also created a backlog of homes that would inevitably be foreclosed.”
“Edgewater resident Chris Christoforou lives across the street from a home with broken windows, cracked bricks and a boarded-up back door. Christoforou said the vacant home may be interfering with the efforts of one of his neighbors to sell his own home. One such vacant home can drag down the neighborhood, he said. ‘I wish someone could buy (the vacant home) and fix it up,’ Christoforou said. ‘People trying to sell their homes right now won’t get top dollar.’”
“But thousands of bank-owned properties sit empty in neighborhoods across the state, a backlog of unsold properties that will eventually make it into Maryland’s housing market at a discount. Maryland has just recorded the largest influx of ‘real estate owned’ properties in its history.”
How long from now will California go through a similar transition?
With 4.4 million excess empty and defaulted houses in California alone, there is a whole lot of effort made to sustain the house price-fixing scheme there.
“But tell that to Dan Gering, who sold his house in Tigard this week – after dropping the price three times.”
you better keep slashing then.
houses are consumption items sold at retail prices. This notion that you’re going to sell for more than the retail price you paid it’s a strange one.
What??? I thought everyone wanted to live in Or Y gun. It’s different here!!
“houses are consumption items sold at retail prices.”
To be fair the house is a consumption item, but the land itself is an asset. Doesn’t mean it goes universally up as the bubbles have shown us, but it is an asset.
An asset which you pay taxes on each and every year without fail, or you lose it.
‘Many thousands of Americans who lost their homes in the housing bust, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages and seizing their assets.’
‘Fannie Mae and Freddie Mac, as well as other mortgage players, are increasingly pressing borrowers to pay whatever they still owe on mortgages they defaulted on years ago. Using a legal tool known as a “deficiency judgment,” lenders can ensure that borrowers are haunted by these zombie-like debts for years, and sometimes decades, to come.’
‘In 2008, bank teller Danell Huthsing broke up with her boyfriend and moved out of the concrete bungalow they shared in Jacksonville, Florida. Her name was on the mortgage even after she moved out, and when her boyfriend defaulted on the loan, her name was on the foreclosure papers, too.’
‘On July 5, a process server showed up on her doorstep with a lawsuit demanding $91,000 for the portion of her mortgage that was still unpaid after the home was foreclosed and sold. If she loses, the debt collector that filed the suit can freeze her bank account, garnish up to 25 percent of her wages, and seize her paid-off 2005 Honda Accord.’
“For seven years you think you’re good to go, that you’ve put this behind you,” said Huthsing, who cleared her savings out of the bank and stowed the money in a safe to protect it from getting seized. “Then wham, you get slapped to the floor again.”
‘Once financial institutions secure a judgment, they can sometimes have years to collect on the claim. In Maryland, for example, they have as long as 36 years to chase people down for the debt. Financial institutions can charge post-judgment interest of an estimated 4.75 percent a year on the remaining balance until the statute of limitation runs out’
I was wondering when the collection vultures where finally going to start rearing their heads…They laid low until the economy recovered somewhat and people had a job and maybe a little bit of savings…
‘In 2008, bank teller Danell Huthsing broke up with her boyfriend and moved out of the concrete bungalow they shared in Jacksonville, Florida. Her name was on the mortgage even after she moved out, and when her boyfriend defaulted on the loan, her name was on the foreclosure papers, too.’
‘On July 5, a process server showed up on her doorstep with a lawsuit demanding $91,000 for the portion of her mortgage that was still unpaid after the home was foreclosed”
Maybe Danell has a job even better than the one in 2008…Who knows, maybe she is married by now…Possibly started a family…Guess what her husband would say about this new revelation if she had not told him…
These “credit collection vultures” who bought this paper long ago for pennies on the dollar are going to become thousands possibly millions of peoples worst nightmares…They are blood sucking leaches that will never leave you alone and make your life miserable…
“For seven years you think you’re good to go, that you’ve put this behind you,” said Huthsing, who cleared her savings out of the bank and stowed the money in a safe to protect it from getting seized…”
Fixed it.
‘For seven years you think you’re good to go, that you’ve successfully outrun your creditors, welched out on your obligations, stuck-it to The Man and left someone else holding the bag- and then they go and pull a dirty trick like this,’ said Huthsing, who cleared her savings out of the bank and stowed the money in a safe to protect it from getting seized.
Now that’s more like it.
Fixed it ??
Although I agree with much of what you say don’t the lenders need to assume some of the risk/loss ?? I mean, isn’t lending a risk analysis business ?? But when you have the government backstoping you until your ready to dump the non pro-forming asset to some credit collection agency who then pursues the borrower throughout the country and for most of their lives doesn’t it seem a little biased ??
No Dave. This is precisely what happens when you pay a grossly inflated price for a rapidly depreciating asset like a house.
No way Dave. Another unfortunate consequence of playing with OPM. Always, Always •THINK• before you assume “yer in the clear”.
No way Dave ??
Why…Are you trying to say that the loan should be risk free to the lender ?? Corporate loans contain risk…Muni bonds are loans and they contain risk…
As I said in my initial post, I do not let the borrows off wholey…But I believe the lenders do & should have exposure also but there exposure has been limited because of the goverment backstop…The borrowers have no such “backstop”…
Furthermore, when the collection agencies get the paper for pennies, they can harass the most minimal person for some repayment…
At the very least, the lenders should not be allowed to sell the paper to credit collection vultures…If the banks want repayment, they should put their own face on the collection by garnishing wages etc…They won’t do that though because that makes them look like the bad guys…Better to have some collection pitt-bulls do the dirty work…
No. He saying that when items are grossly overpriced necessitating taking on massive debt loads, the borrower owns the entire burden.
Pay up. A hard lesson learned.
She needs to be educated on how to deal with a collections agency. It will take a few years and lots of back and forth with the agency but she can get that debt settled for nickles on the dollar and rid her life of them. A small price to pay for not having to shell over 91K IMHO. Yeah, there is culpability with the bank. But that seems out of our control doesn’t it? Especially when they play with our money.
Question is, what standing do they have in Florida to file suit 7 years on?
In many states, suit has to be filed within a defined period. 2 years in Virginia, but what is it on Florida? Judgements can stick to you for years, but if creditors wait too long to file, too bad..
‘Peter Schiff says the inducements being thrown in for potential buyers are evidence of desperation, at best, and excess that could endanger the economy at worst.’
“If you remember, during the housing bubble instead of dropping prices, which would have been a sign of trouble, the builders started throwing in freebies,” Schiff explains. “Some of the developers were even throwing in brand new cars so they didn’t have to acknowledge prices were falling. Now they’re doing it all over again. Builders are loading up on incentives because they’re having a hard time selling their homes. This is really a precursor to falling prices.”
‘If the attempt is to divert investors’ attention from the falling levels of demand it’s not working very well. The SPDR S&P Homebuilders ETF (XLB) has been worse than dead money all year.’
We are getting close to the end of the song and this game of musical chairs ain’t gonna end well.
In Tucson, there are reports of slowing sales. Price appreciation is also slowing.
“Some of the developers were even throwing in brand new cars so they didn’t have to acknowledge prices were falling.”
I remain steadfastly unconvinced on the legality of financing a car purchase through a home mortgage loan.
Another reason we call this place ILLANNOY!!
And it ain’t just rodents that makes this place rat infested.
Happy day peeps!!!
Orkin: Chicago “Rattiest” City in USA, Followed By Los Angeles and Washington DC
Orkin, the pest extermination company, has released its ranking of the most rat-infested cities in the USA.
Leading the list is Chicago, followed by Los Angeles and Washington DC. And then by New York City and San Francisco.
Ever go into the back alleys of a big city where all the garbage bins are ?? If you were a “rat” where would you want to live ??…Hell, its like a nightly smorgasbord…
I’ve been interviewing LIHTC developers/HUD partners. Even in the newer “communities” (euphemism, can’t use the word “complex”)in the burbs, vector control is an issue from “waste management” (”trash” is not a soft euphemism). I’ve been told real words are harsh. Oh dear, gotta be PC.
I would say that most of the “rats” in DC are ~ 200 lbs. and wear expensive suits.
LOL…
LOL. Some have an elephant mask and some have a donkey mask, but they are all rats thru and thru.
A neighbor just had O quote tenting their home. Our neighbor could not believe the addition services O threw in the quote, without him asking for it, like attic insulation blown in.
His final deal was over $1,200 cheaper. Caveat Emptor.
When I read what the Saudi’s were doing the other day, I thought just what this guy is saying about fracking:
‘Gartman suggested not ascribing too much to the drop in crude oil prices. “I don’t think that the crude oil market is indicative of economic weakness,” he said. “I think the crude oil market is indicative of excessive inventories of crude, and even more coming at us in the fact that the Saudis would like to push crude oil prices down to stop fracking and to do damage to the Iranians and to do damage to the Russians.”
http://www.cnbc.com/id/102083900?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=102083900#.
This happened in the 80’s. The Saudi’s and others drove the price of oil down to squash producers in Texas, etc. Held prices down long enough to kill them off, then went back to business as usual. They can afford to do that. Fracking is expensive and relies on junk bonds. Boy, could there be a mashup coming out of this.
The price of oil is going down because the US dollar is so strong against almost all currencies. Fracking is only a small output on the world stage (but not other tertiary recovery methodologies).
Only fields run by Americans and Canadians can really handle the directional drilling/computer assisted mapping techniques required, and even they are few as compared to the total.
I think everyone is surprised at QE being almost removed with interest rates staying low and the Dow continuing high. Most are seeing this as a strong US economy and leaving their dollars there.
BUT. With other world economies in the tanking business their “cheap” currencies will take sales away from the US. Half a loaf will be shared with more people.
The Fed did all this just to stop a run on the banks.
When it is all finished I hope someone has a shoe left to drop.
“Fracking is expensive and relies on junk bonds. Boy, could there be a mashup coming out of this.”
The Frackin’ A!