Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
Friday, January 27, 2006
'Frustrated Sellers Are Screaming' In Fresno
The Fresno Bee has the latest on that housing bubble. "In Fresno County, 1,343 homes sold in December compared with 1,310 houses in November. With fewer sales and a climbing inventory of houses for sale, prices appear to be flattening or decreasing. 'We're seeing across-the-board price reductions,' (agent) Vicki Dobbs said, characterizing what she called a return to a 'normal' market."
"She cited a recent 24-hour period when 107 houses went up for sale and only 35 others were listed as a 'pending sale' by the Fresno Association of Realtors. That's a departure from nine months ago when appraisers, loan officers and others had an abundance of work. 'Pest control companies are looking for business again,' Dobbs said. 'Mortgage people have lots of time on their hands. We can get an inspection done in 48 hours instead of two weeks.'"
"Real estate agent Cliff Lloyd said some sellers are frustrated. 'The sellers are screaming because their homes are staying on the market 60, 90, 100 days when last summer they would sell in weeks or days. I had a home sell in an area for 10% less than the same house did six months ago,' said Lloyd, in Fresno. 'There is going to be a real adjustment for the industry this year.'"
"Mike Gilmore said his loan activity has tumbled 20% in the last quarter. Some of that could be seasonal, 'but some of that is a market correction,' he acknowledged. Still, he doesn't forecast a bubble bursting."
Thanks to the reader who sent this in.
ReplyDeleteBen, you are up early... too many Real Estate investments to worry about?..............Only kidding!
ReplyDeletexsparta,
ReplyDeleteNo, getting ready for the new home sales numbers.
If I bought a 650K 1600sf sh*tbox in armpit Fresno with the expectation of selling it for 750K in a month, I'd be pissed off right about now too.
ReplyDelete"In Fresno County, 1,343 homes sold in December compared with 1,310 houses in November. With fewer sales ... "
ReplyDeleteI don't see how this is fewer sales in Fresno. More houses sold in December (1,343) than November (1,310). Perhaps the numbers are reversed.
David
Bubble Meter Blog
The same screamers were boasting months ago about how 'smart' they were purchasing RE.
ReplyDeletejohn in va said...
ReplyDeleteSpeculators in Fresno, Bakersfield, and similar places are going to get hurt badly. These farm towns are flat and depressing, scorching hot in the summer, hours from anything of interest, and they have very little to offer in terms of quality employment. Unlike FL and AZ, they don't have the redeeming quality of being a boomer retirement destination. Nobody dreams of retiring and moving to Fresno.
Don't forget about the infamous tule fog in the cold winters. That stuff is so thick that sometimes driving is impossible in the central valley.
...And BTW, did anyone mention the air quality there--- yuk!
"Still, he doesn't forecast a bubble bursting."
ReplyDeleteWhere have I heard this before?
I know:
There are no American troops in Bagdad."
At 12:44 PM, leewhee said...
ReplyDelete---Speculators in Fresno, Bakersfield, and similar places are going to get hurt badly. These farm towns are flat and depressing, scorching hot in the summer, hours from anything of interest, and they have very little to offer in terms of quality employment. Nobody dreams of retiring and moving to Fresno.---
Not to mention the worst air quality in the U.S., according to the LA Times. Making it worse, says the LAT, the largest contributor to air pollution in the SJ Valley is not auto emissions, but bovine flatulence.
First, I've got connections in Fresno and it is NOT that bad! Yes, the stereotypes are based in fact and it's not Malibu or Santa Barbara, but there are worse places to live.
1. It's less than 2 hours to Yosemite, Kings Canyon, and Sequoia National Parks. There are maybe a dozen fresh water lakes nearby, with camping, sailing, water skiing, etc. It's about 4 hours to the SF area, and 3 hours to Monterey bay.
2. The weather in the hills and low mountains east of Fresno is close to the BEST in the entire country. It's above the horrid tule fog, above the summer heat, and below the snow--and less humid than the coast. Even Fresno has better weather than Vegas, Reno, or 80% of the US.
3. The quality of life one can have in Fresno is easily better than Riverside/San Bernadino, when factoring in cost of living, lack of commuting hell, etc.
Yes, the air sucks. Yes, it's a poor sister to the big CA cities. No, I don't want to live there. Not unlike LA, the notion of 'redlining' is alive and well in Fresno--ethnic groups are sharply divided by region.
But, you can do MUCH worse!