Wednesday, July 26, 2006

"...weeks or months at a time with no offers"

The RedBankGreen Blog pointed out to us this story from the Star Ledger.

Snip...

[Today, sales agents say homes in Monmouth and Ocean counties at all price points sit and sit, sometimes for weeks or months at a time with no offers.

And sellers, who have grown accustomed to property values doubling and tripling in recent years, have started to lower their asking prices -- in the McLoughlin's case by as much as $400,000 -- to move their homes.

"Like everywhere else, sales have slowed down quite a bit and asking prices have dropped some," Stevens said. "It used to be not a question of if you would sell, but when you would sell. If someone listed their property at too high a price, given more time, the market would rise to that price and it would sell. That's not the case now. What we're seeing is a lot of owners having overpriced listings and the market is not rising to meet them anymore."]

See RedBankGreen for the full story.

3 Comments:

Anonymous Anonymous said...

If this continues, and likely it will,we may see big price reductions by this time next year. I'm a well qualified first time home buyer who's waiting this out. As much as I'd like to buy, I refuse to pay the ridiculous prices that sellers are asking in the current r.e. market. Sellers and realtors need to be realistic.

Wednesday, July 26, 2006 10:29:00 PM  
Anonymous Anonymous said...

Anon 10:29 - you're right. I have been looking, but don't even consider buying in 2006. The prices are stupid for what you get... a 3 bdrm, 1 bath ranch for 700k - no thanks! I am in no rush, and when I do want to buy, I will go directly to the owner and cut out the realtor's commission.

Wednesday, July 26, 2006 10:42:00 PM  
Anonymous Anonymous said...

Home prices could start falling
Updated 7/25/2006 11:30 PM ET

By Noelle Knox, USA TODAY
For the first time in more than a decade, home prices could start to fall around the country in coming months, the National Association of Realtors said Tuesday after a report showed that sales of existing homes fell in June and the number of homes for sale soared to their highest point since 1997.
Condo prices are already being hit: They fell 2.1% from June last year to a median $226,900 (median means half cost less and half cost more). Prices of single-family homes edged up 1.1% in June to $231,500. With a 6.8-month supply of single-family homes on the market and an eight-month supply of condos, sellers are under more pressure to cut prices, and buyers can be choosy.

David Lereah, NAR's chief economist, said he expects "price numbers to start deteriorating," though he still projects home prices will be up 5.3% for the year.

ON DEADLINE: Numbers differ by region

The new figures provide deeper evidence that the nation's housing market is undergoing a jarring transition from a seller's to a buyer's market. The five-year boom, which peaked in August, was driven partly by investors, who snapped up 28% of homes sold last year. Many of them now want to sell. But rising interest rates and lofty home prices have squeezed out many buyers.

"Prices got too high in some local markets," Lereah said. "So you're seeing two things occur: Investors are leaving quickly, and regular home buyers are staying on the sidelines."

The last time single-family home prices fell was in April 1995, when they slipped 0.1%. The NAR said June existing-home sales slipped 1.3% from May, to a seasonally adjusted annual rate of 6.62 million and were down 8.9% from June 2005. On Thursday, the Commerce Department will report new-home sales for June, and economists such as Phillip Neuhart of Wachovia expect those figures, too, to show continuing weakness.

"The numbers are not fully counting cancellations, which builders are reporting at a very high level," Neuhart notes.

Many developers received approval for their projects when demand was sizzling. Now, some have to offer vacations, pools and car leases to entice buyers.

For existing-home sales, the weakest region was the West, where sales plunged 17.1% from June 2005. Sales fell 9.8% in the Northeast, 6.2% in the Midwest and 5.5% in the South.

"Markets which have been the hottest are quite likely to see home price declines," says John Ryding, an economist at Bear Stearns. "In those markets, you could see declines for the year."

The California Association of Realtors said Tuesday that home sales skidded 26% from June last year and are off 20% for the year. Though the median-priced home statewide hit a record $575,800, prices fell in five areas, including Santa Cruz, Palm Springs and Santa Barbara.

"Affordability has probably hit a record low," says Robert Kleinhenz, deputy chief economist for CAR.

Ron Peltier, CEO of HomeServices of America, adds, "There is a delayed reaction on the part of sellers to accept the new reality."

Find this article at:
http://www.usatoday.com/money/economy/housing/2006-07-25-existing-home-confidence_x.htm

Thursday, July 27, 2006 1:50:00 AM  

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