"Spring Thaw"
"It's the dead of winter -- a slower-than-slow time in the real estate world.
But a recent open house in the tony hamlet of Short Hills drew so many people that even the listing agent, Howard Bunn of Keller Williams Realty in Summit, was left scratching his head.
"I've never seen this many people at an open house ever, and I've been doing this for 10 years," he said.
The house, a vacant, five-bedroom fixer-upper built in 1923, was listed at $999,000. An elderly couple that lived there for decades had died within one year of each other. Sitting on a half acre of land, the colonial needed a complete makeover of the slate roof, the kitchen, bathrooms and a paint job. And it needs a homeowner with a lot of spare cash and patience.
Still, surrounded by $1.6 million dollar homes, house hunters were all thinking the same thing: Bargain.
The next day, the house received 11 offers -- all but one of them at list price or higher, Bunn said."
Full article...
But a recent open house in the tony hamlet of Short Hills drew so many people that even the listing agent, Howard Bunn of Keller Williams Realty in Summit, was left scratching his head.
"I've never seen this many people at an open house ever, and I've been doing this for 10 years," he said.
The house, a vacant, five-bedroom fixer-upper built in 1923, was listed at $999,000. An elderly couple that lived there for decades had died within one year of each other. Sitting on a half acre of land, the colonial needed a complete makeover of the slate roof, the kitchen, bathrooms and a paint job. And it needs a homeowner with a lot of spare cash and patience.
Still, surrounded by $1.6 million dollar homes, house hunters were all thinking the same thing: Bargain.
The next day, the house received 11 offers -- all but one of them at list price or higher, Bunn said."
Full article...
posted by Little_Silvered at 5:20 PM
9 Comments:
Diane Turton is full of shit.
Everyone knows that prices always go up, and that real estate is the best investment.
Everyone also knows that a once in a lifetime real estate bull market is usually followed by a "correction" of a year or so and that prices will actually rise during the correction.
This is case book economics 101. Everyone know that.
It's all bullish. Everything is bullish. Er, could you please pass the cool aid?
I wonder what the thousands of homeowners who can't sell at their prices think of this market?
We probably won't see much of a drop in sales prices till Fall. I think Spring is going to be a reality check for most Sellers and Realtors when homes don't move.
Realtor may be generally full of shit, but this time there is definately something going on. I purchased and sold a home (both very low) in the fall, but continue to watch the market. Most of the other houses we looked at, including many that spen the entire second half of 2006 for sale are now suddenly sold or under contract.
It's called a false bottom. Some people will think the worst is over and will start buying. Houses are still grossly over-priced and will lose value until fundamentals catch up with prices.
I have also heard it called "The dead cat bounce".
This is exactly what's happening right now. The NAR has indeed found the bottom, all those saps who believe whatever they here. I guess they took the "$40,000 DISCOUNT" challenge, which gets rolled into the cost of the home and 30 year loan BTW.
Towards the end of summer sellers will get real anxious and start dropping prices as expected, which makes current dead cat bounce buyers under water. But we'll see. Maybe it won't happen, who knows. There is still a lot of cash out there.
Only time will tell what will happen with pricing. But there are billions of dollars of ARMs readjusting in 2007. I'll sit on the sidelines with my cash for now.
Well, they nailed it. Housing affordability is strained big time! This correction will make the dot-com correction look like a piece of cake because more people are in this one. As the "creative" loans start resetting their payments in a big way right about now all I can say is hang on to your chair cuz it's gonna be a rough ride down for everybody.
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