In my snobdivision (of 80 houses) here south of Denver, (with the cheepest tax assessment of 485K up to 1.3MM) 4 months ago, we had 9 homes on the market.
In the last 2 months, 7 of those 9 have moved plus 2 others recently listed. Some getting a “sold” sign within hours. The two that haven’t moved were listed at silly prices.
6 months ago, my shack would probably be listed at $750K. With the recent local strength, I’m getting the opine that if needed, I’d list at $825K. But, I don’t need…
Any other spots of optimism?
Edited 8/29/2007 11:56 am ET by peteshlagor
Replies
peteschlagor,
I sure don't see any signs around here.. new homes sales keep dropping, this month recorded another drop..
Bankers have so much underperforming bad loans on their books that they simply cannot take another reposession. Thus some who would have their home foreclosed on are escaping the hammer simply because the bank is in no position to persue them.. they'd rather have a poorly performing loan on their record than one which isn't performinag at all.
Last year less than 6% of all listed homes sold and we're down considerably from that..
Must be those damned "ice fishing Republicans" keepingh all potential buyers away.
; )
J. D. ReynoldsHome Improvements
Last year less than 6% of all listed homes sold and we're down considerably from that..
this has to be a typoo... so out of 100 homes listed only 6 sold within one year?
better stock up on MRE's because the end is HERE if that is a true #
james
Some parts of MN are really, really hurting. So 6% may not have been a typo. Michigan is also suffering pretty badly.The coasts have enough population to limit the damage to just depreciation of housing value. Other parts of the country aren't so lucky. When there aren't any buyers, there aren't any buyers and the house doesn't sell no matter what the price.Personally, I think we're close to the bottom of this cycle but we're not there yet. Still too many units on the market that need to be absorbed before a quiet optimism can start up.Glen
James,
5.8% in fact!
The news tonight is all about the deepening slump in home sales. projections are a price correction of 10% and possibly as high as 15% in some markets..
http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/index.htm?section=money_topstorieshttp://www.apfn.org/APFN/fed_reserve.htmSamT
In sw CT the house market is quite strong; especially at the $600 k and up. Land is scarce so buying a house/lot for $800k and tearing it down to build 2 $1.3+ million houses is not uncommon.
Houses in our neighborhood are sold quickly. We live in town but not to close to the action. So we can go visit but don't have to live in it. Works for me. I don't see our neighborhood dropping.
I live in Sitka, AK.
Things are usually diffrent up here, we can be 6 months to several years behind trends in the lower 48.
That said, housing has been rising 15% per year (my guess) for the past several years. 350K buys a simple 3 bed 2 bath 2000 foot.
well we are getting stung now! Local college went out of buisness unexpectly, our biggest employer is cutting it's workforce and then that nagging sub-prime problem. Lots of people banking on rapid appreciation of homes they really couldn't afford to own.
Use to have 10-20 houses on the market, now 75+. Never was a rental advertised in the summer, now there are loads.
I'm scared. Wondering how much further things are going to drop.
"Any other spots of optimism?"
sure.
anywhere but the "extremes" ...
can't burst a bubble that doesn't exist.
some over-valued places will have over-valued houses sit at over-valued prices.
not the rest of the countries fault some paid too much for their house.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
That was my point. There never was a bubble in this neighborhood. For me it's location, location, location. We live real close to everything but far enough away that it's nice. That isn't going to change. The houses are small by todays standards. Single story small ranches.
This neighborhood as built in the late fifties for profesionals. It was " the spot" for a long time. Those people are getting to the point that they are to old to own a home. So it's turning over to younger couples or small families.
I think there is going to be a lot of remodeling in this neighborhood.
Bright spots all over the place. you just have to look for them.
In my neighborhood,
First prices dropped. Some of that due to a flood of reduced price new homes.
Then the market got stagnant for a few months.
Then prices started to go back up very slowly. Then sales picked up a little.
Now, sales are ok and prices are stable, but man there's a ton of stuff for sale.