Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
Sunday, January 29, 2006
Anything 'Weird' In Your Housing Market?
Post your observations of local housing markets here! There is a lot to be on the lookout for; clues in the classifieds, especially a proliferation of spec homes seeking renters; or websites with builder incentives.
One reader posted on an open house, "How's this for weird. I saw an open house on a Tuesday in a town next to me. A TUESDAY! Complete with signs on the corner & balloons."
"This was in Montville, NJ. One of those 'prestigious' labeled towns as quoted by the property salesman."
Another saw the same thing, "There was a Tuesday open house a street over from me this week too. I'm just north of Destin, FL. Home would be called entry level for the area, and even though it's in good condition, is about 10% overpriced. They're asking $325K right now when similar homes have been going in the $275-$299K range."
"I'm guessing they'll either end up taking it off the market, or take about $280K for it after it sits for three months."
Another notes it's not just housing to consider. "When the housing bubble bursts, where do you think it'll show up too? My guess is any biz that relies on home equity. High-end cars, home improvement, jewelry, the travel industry, furniture stores, boats. I suspect there will be a lot of boats for sale in a few months, especially in California."
One reader can hear the housing bubble popping. "Other Signs? Many granite cutters set up shop in the industrial area nearby. They would make loud stone grinding sounds all day, but I thought it was kind of cool. 'Nrrrrrrrrmmmmmmm!' So much energy! Now these places are all going quiet at once. On the one hand I find myself saying 'Ha, ha,' and on the other 'uh-oh!'"
I've got one. A broker tells me that he was showing a client houses in the Phoenix area. They were having lunch, going over some paperwork when a guy seated at the next table says, 'you guys looking for a house? I've got two.'
ReplyDelete"I've got one. A broker tells me that he was showing a client houses in the Phoenix area. They were having lunch, going over some paperwork when a guy seated at the next table says, 'you guys looking for a house? I've got two.'"
ReplyDelete*************
'you guys looking for a house? I've got two.'
Freakin' hilarious!
Like a dealer, no doubt, in hushed tones...
mad_tiger said:
ReplyDelete"San Francisco Peninsula. A listing from last year priced $1.1MM. Taken off market. Now recently listed for $2.8MM.
????????????????"
********
Aren't we just so special here in the SF Bay Area?
Inventory has taken a sharp turn upward (see graph on my blog) in San Luis Obispo County, CA (THE NUMBER 1 most volatile market in the country---Standard and Poor's). However, BEFORE the inventory spike, our median price just dropped 14% or so in December. Now, to be consistent, month-to-month data have to be interpreted with caution. It will be interesting to see the change now that the inventory is up in January.
ReplyDeleteHow about this Las Vegas ad received via e-mail today:
ReplyDeleteSaturday, January 28th Only!!!
Save up to $70,000 in select new home neighborhoods this Saturday only.
Build your dream home or find a home that's ready to move into right now with huge savings during this one day new home sale.
There are no gimmicks. It's first come, first serve on all inventory homes and remaining homesites.
Contact your EASYstreet Realtor today or give our office a call.
Call today. Time is running out.
(702) 280-4663
EASYstreet Realty
$70,000 in savings just for you!
Easy Street Realty Inc
702-280-4663
1421 E. Sunset Rd., Suite 10, Las Vegas, NV 89119
Right up the street a 2/2 bath house sat in the market for 6 months - first listed for $330,000, no bites, reduced to $320,000 afew months later. This house sits on a busy corner, and has a 2 story apt buiding right outside the back door. House sold this past Oct for $286,000. Came back on the market 2 weeks ago for $376,000! The flipper put in the standard granite counters and SS appliances, and hard wood floors. A couple of other houses for sales on my street, but this is the most surprising.
ReplyDeleteI've started to see the "take over payments" ads in the auto trader for the first time in many, many years. And these are on vehicles less than a year old.
ReplyDeleteI would anticipate seeing this on houses before too long as well... assuming the individual has a loan worth having, LOL.
Some folks thought they were doin' good, but suddenly realized that they really aren't. Now they just want to get their monthly finances in order by losing a car payment.
Unfortunately I don't do "take over payments" on anything - unless there's only one or two payments left, that is! :)
Two townhouses for sale next door to each other in Arlington, VA near the Ballston metro. One going for $640,000, the other for $740,000. Different floor plans, but appear to be basically the same size. The one for $640 would have sold in an hour last Summer, but it's been on the market a week. So two oddities--similar houses selling for disparate prices, and apparently a sudden slowdown in the townhouse market.
ReplyDeleteHahah. Try this. This flipper/bagholder-in-training is "taking bids" to RENT this one!
ReplyDeletehttp://phoenix.craigslist.org/apa/129307544.html
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ReplyDeleteTwo rowhouses in nearby neighborhoods being listed by the same realtors had very different price reductions. One was reduced 75K ( from 975K to 850K), the other one was reduced by a mere 9K (from 599K to 590K).
ReplyDeleteFor more info check out my blog:
Bubble Meter Blog
David
I say the well renonvated Ghetto shack in the Richmond CA Iron triangle (the BAAD neighborhood of the BAAAAD city):
ReplyDelete<1000 square foot, 3 bedroom, 1 bath (garage converted to bedroom, so no garage space). <4000 square foot lot. Backing up onto an abandoned RR right of way/local dump. Next to an industrial building with concertina wire along the top of the fence.
Asking price was $469,000. And somebody appears to have bought it because theres someone living there now.
A few observations from San Diego-
ReplyDeleteI'm seeing Open Houses on about any day of the week.
Saw a For Sale or For Rent sign. I was wondering when I would finally come across one. It was on a SFR in a nice area with several other houses for sale on the same street.
One condo conversion in UTC changed their signage just a few weeks ago to reflect a price reduction. Last Wednesday, after some bad RE numbers had come out for San Diego, they hired several obnoxious signthrowers for the day. This week, the signs have been completely redone again with a 20K reduction below the last. I doubt that the flippers who bought early into the 'Luxurious Mediterranean lifestyle' marketing there are pleased that their catboxe$ are now underwater.