Tuesday, July 25, 2006

It's Not a "Buyers Market" Until the Blogs Say So.

Ben Jones, The BubbleMeter, the Marin Bubble Blog and all of the other Blogs who correctly predicted over a year ago the bursting of the housing bubble that we are seeing now will also be who decides when it is a "buyers market." The NAR has no business calling this a "buyers market" given their pathetic predictive abilities.

"NEW YORK (CNNMoney.com) -- It's official - even the nation's leading group of real estate agents now says it's a buyer's market in housing, as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers.

The news came in the National Association of Realtors' report for June, which showed that home sales fell to the slowest pace since January while price gains were the smallest in over a decade."

More...

20 Comments:

Anonymous Anonymous said...

How can it be a buyer's market when interest rates are rising and prices have not come down? Where is the benefit to buyers? Many first time buyers are still priced out of the market because of overinflated prices. Rising interest rates are only making things worse. It will not be a true buyer's market until prices come down.

Tuesday, July 25, 2006 10:29:00 PM  
Anonymous Anonymous said...

Prices are reducing but 20k off a 800k house is a joke. Houses are sitting and not selling. People who want to buy in the near future, need to find a house you like and go make an offer (who cares if they are asking 1M - offer 500k). Show the sellers and greedy realtors what you are willing to pay. Lowball the hell out of the asking prices - the buyers have to take control back.

Tuesday, July 25, 2006 10:37:00 PM  
Anonymous Anonymous said...

You're right. Buyers need to lowball. Sellers and realtors do not seem to be getting the message that asking prices need to be reduced. I don't understand the thinking of the few people who are still buying at these prices.Prices are not going up and they may even come down. So what's the rush?

Wednesday, July 26, 2006 12:03:00 AM  
Anonymous Anonymous said...

Sellers are just hoping against hope that prices don't drop and that the bubble continues to persist. It ain't gonna happen. Prices have risen to unsustainable levels given where interest rates have gone. Prices will eventually collapse in bubble areas, but it looks like it's going to take a brick to the head for sellers to realize this.

Wednesday, July 26, 2006 9:23:00 AM  
Anonymous Anonymous said...

I just sent a realtor an email stating that I intend to buy in the next year-24 months, and am scoping out realtors whom I would be comfortable working with. I said that I'm looking for value, and highlighted two of his properties, noting what I'd pay for them, vis-a-vis what they're currently selling for. (Reductions in the 40% range.)

In the note, I was conciliatory, but frank, and offered ample evidence of where I thought the market was going. I told him that I look forward to working with a realtor who realizes that the seller isn't best served by trying to ride out the storm by keeping prices artificially high.

I suspect the reply will be slightly angry, peppered with "I have no problem moving homes at the current prices," and "there has never been a better time to buy." A smart realtor would keep my info and contact me when he has a 'motivated seller.'

I'll report back when--or if--I get a response.

Jamey

Wednesday, July 26, 2006 9:31:00 AM  
Anonymous Anonymous said...

Does anyone know anything about the
KHOv project in port monmouth.

The Dunes, lots of units for sale.

They look overpriced

Wednesday, July 26, 2006 10:03:00 AM  
Anonymous Louis A said...

It will be a buyers market when the the sellers say so...not until then will buyers have any say. If sellers won't lower the asking price you can low-ball all you want If someone low balls a bid @ 40@ below offering price most sellers will just respond they have alread seen a bid @ 30@ below so now what .Do you up your low bid or walk and risk losing a good purchase ?

Wednesday, July 26, 2006 11:13:00 AM  
Blogger njcoast said...

It will be a buyers market when you can buy the forclosed houses from the bank for pennies on the dollar, I have already have looked at some shore houses that the owners are in Chapter 7. When I bought our beach house in 1982 the seller had to bring money to the closing. Real estate does not always go up- even on the beach front!( Even though they are not making anymore beach front)

Wednesday, July 26, 2006 11:28:00 AM  
Anonymous Anonymous said...

I don't think you'll be abel to buy any home on the coast for pennies on the dollar anymore.There are way to many buyers waiting for the bubble to burst.for you to be abel to buy a home for your price your talking 1960's prices....I just don't see that happining

Wednesday, July 26, 2006 12:51:00 PM  
Anonymous Anonymous said...

NJCoast: Where do you--excuse me, where does one--find listings of houses in foreclosure?

Jamey

Wednesday, July 26, 2006 12:53:00 PM  
Blogger lindsey said...

The bloggers won't call the buyer's market. Conditions determine who has the upper hand in a market. If you have to buy or sell, you do so in the market you've got, not the one you want.

If a buyer's market is defined by affordability, i.e. the ability to buy a house you want at a price you can afford to pay without finding money in a bag on the side of the road, we've got a long way to go.

The two rules of thumb on affordability I've heard most are: home price 3 times salary
or
paying no more than 30 percent of your income for housing (that includes taxes, utilities, insurance etc.).

Wednesday, July 26, 2006 1:08:00 PM  
Blogger njcoast said...

Jamey-
Just look to the link on the right hand column of this blog - Monmouth County forclosures.

Wednesday, July 26, 2006 1:59:00 PM  
Anonymous Anonymous said...

Duh. Thanks a lot, and bless you, Coasty.

Wednesday, July 26, 2006 2:39:00 PM  
Blogger njcoast said...

Thank you Little Silvered for the link!

Wednesday, July 26, 2006 2:56:00 PM  
Blogger njcoast said...

You can also go to the NJ property search web page to look up properties by location or name and get the lot and block number(Look at the northern NJ bubble blog for the link). Then you can go to the monmouth county clerks records site and find out all you want on a property like previous sales (you can view the deeds),mortgages (you can even view the amounts and terms of the mortgages). They will also show any tax liens. No realtor will tell you these are all public records- do your own research before you over pay for a property!

Wednesday, July 26, 2006 3:53:00 PM  
Blogger njcoast said...

My favorite thing is to go to open houses with the last sale deed and ask the realtor what the home owner has done to the house to warrant the much higher price of the house they just bought a couple of years before. They usually stare at me with a blank look on their face.

Wednesday, July 26, 2006 4:00:00 PM  
Anonymous Anonymous said...

Coast:

Thanks again. You're the bee's knees.

Have bookmarked this page, and will refer to it (even though I'm looking in Ocean County--presumably the same FOIA and public records acts are in effect down there.)

One other thing: Does anybody here know whether Ocean Co. has a similar foreclosures link? Much obliged!

Wednesday, July 26, 2006 5:15:00 PM  
Anonymous Anonymous said...

Louie A, wait until owners find out what their properties are really worth (what a buyer is willing to pay). That'll be like a cold splash of water in the face in the early morning.

Wednesday, July 26, 2006 7:57:00 PM  
Anonymous Anonymous said...

Anyone here actually own a home?

Sunday, July 30, 2006 9:01:00 PM  
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