Housing Bust(ed) Officially

[LADoc00]

http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/HomePriceReport.aspx

Data released Tuesday(9/5/2006), prices declined in more than 61 of the 275 cities tracked by the Office of Federal Housing Enterprise Oversight. And the deceleration has been fast: The agency reported that the decline in quarterly appreciation was steepest in more than three decades.

Yehawwwwww. Sell your condos NOW!

*I cant wait to see all the flippers get flipped--> right into bankruptcy!

PS-After exchanging some emails with people, Im getting unconfirmed reports that the housing market in parts of the SF Bay Area maybe dropping by $10-15K off the median asking price a WEEK! Total meltdown is imminent.

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[etf]

a house in my neighborhood (not an especially affluent one) sold 2 weeks ago for $170,000 over asking. i don't think the market in sf is going to "crash" anytime soon, unless an earthquake hits. then again, this is just 1 isolated incident and i am by no means a real estate expert.

 

[LADoc00]

a house in my neighborhood (not an especially affluent one) sold 2 weeks ago for $170,000 over asking. i don't think the market in sf is going to "crash" anytime soon, unless an earthquake hits. then again, this is just 1 isolated incident and i am by no means a real estate expert.

Bro, I sorry to inform you but the population of SF dropped by 5% with the last census, that makes it one of the fastest shrinking cities in the US. In addition, not only have wages been flat since 2000, but total number of jobs within the city has declined! In addition, there are 5-8 new high rises going up, this is in addition to such monster complexes as Beacon and Ricon Hill Towers. **** has HIT THE FAN, big time. I love it. I think will snatch up a place near the financial district for 50 cents on the dollar by this time next year.

And, I confirmed that median asking price in SF dropped by $28,000 from two weeks ago, which is the biggest drop EVER recorded for a 14 day time period. At this rate, the median asking price (not sale price ASKING) will go from over 700K to less than 300K by the beginning of 2007.

 

[Jocomama]

He's right:

Bro, I sorry to inform you but the population of SF dropped by 5% with the last census, that makes it one of the fastest shrinking cities in the US. In addition, not only have wages been flat since 2000, but total number of jobs within the city has declined! In addition, there are 5-8 new high rises going up, this is in addition to such monster complexes as Beacon and Ricon Hill Towers. **** has HIT THE FAN, big time. I love it. I think will snatch up a place near the financial district for 50 cents on the dollar by this time next year.

And, I confirmed that median asking price in SF dropped by $28,000 from two weeks ago, which is the biggest drop EVER recorded for a 14 day time period. At this rate, the median asking price (not sale price ASKING) will go from over 700K to less than 300K by the beginning of 2007.

 

[Faebinder]

A house is a house is a house is a house..... you are not going to see a drop in house prices for long... now a days you get people saying... "Oh if I dont get this price then I wont sell it."

The value will stay way higher than what it was when 911 happened and the stocks collapsed... it wont drop much now and will stay high until the real value of the house catches up with the over-value that everyone percieves the house to be at.

Housing and Oil are the ultimate long term investments.

 

[etf]

Housing and Oil are the ultimate long term investments.

over long periods of time (decades) stocks are the best performing asset class - at least it's been true over the past century...

 

[lord_jeebus]

I'm from Japan where we had a similar real estate bubble burst several years ago.

Unfortunately (for buyers) the decline in prices was a slow (but steady) process.

 

[lord_jeebus]

Here's a picture

 

[mshheaddoc]

An article that takes my perspective on this issue. Now the source is a little sketchy (I don't watch the Apprentice) but I think people need to be realistic about markets ...

 

[LADoc00]

An article that takes my perspective on this issue. Now the source is a little sketchy (I don't watch the Apprentice) but I think people need to be realistic about markets ...

WTF. You are taking real estate advice from a Hollywood-type 30-something who looks like she spends nights dancin the pole?!

Im considering lowballing for a piece of property near me that is assessed at 1.3 million, didnt sell, the price dropped to 1.0 and I may offer 850K.
That was UNHEARD OF not 6 months ago.

Long live the real estate BUBBLE EXPLOSSSSIIIOOOOOONNNNN!

bye bye flippers, bye bye!

Nananana...nanana...hey, hey, hey....so long!

 

[mshheaddoc]

Hey, I didn't say I approved of the source for commercial reasons, but the gist of what she states is how the market forces truly operate

Your market is the bubble. The "CITY" markets are the bubble, (less LV and AZ) the rest of us are doing pretty good and holding steady

 

[The White Coat Investor]

I bought an end-unit townhome in Virginia in August, the one next door (slightly smaller and not an end unit) just went under contract for 10% more. Long live the bubble!

Good luck picking up a steal in San Francisco. (I find it interesting that your steal is $850K.) I hope you're an attending.

 

[LADoc00]

I bought an end-unit townhome in Virginia in August, the one next door (slightly smaller and not an end unit) just went under contract for 10% more. Long live the bubble!

Good luck picking up a steal in San Francisco. (I find it interesting that your steal is $850K.) I hope you're an attending.

"attending" is a phrase not used in the real world

 

[Stroganoff]

 

[The White Coat Investor]

"attending" is a phrase not used in the real world

au contraire, I find it quite useful to distinguish a staff physician from a resident physician at any institution where both types of docs work. But I assume you refer to an institution where there are no residents when you say "real world" and I suppose in that case you're right.

 

[mshheaddoc]

Housing "normalizing" after record sales yet Record drop for home prices
Sales of existing homes fall for sixth straight month, prices sink 2.2 percent.

The median price of a home sold in September fell 2.2 percent to $220,000 from $225,000 a year ago. It was the biggest year-over-year drop since the record 2.1 percent decline recorded in November 1990, when the nation was in recession..

The group's August sales report was the first in 11 years to show a year-over-year decline in the price of a typical home.

The median is the point at which half the homes sold cost more and half less.

One bright spot for the housing sector in the report was a decline in the number of homes on the market, which fell 2.4 percent to 3.75 million in September, giving the market a 7.3 month supply of homes at the current sales pace.

but with mortgage applications also up for the month, that is a good sign.

 

[etf]

home price drop is largest in 35 years: http://biz.yahoo.com/ap/061026/economy.html?.v=10

doesn't faze me

 

[LADoc00]

home price drop is largest in 35 years: http://biz.yahoo.com/ap/061026/economy.html?.v=10

doesn't faze me

Read that this morning. KABOOOOOOOOOOOOOOOOOOOOOM. Bye bye bubble bye bye!!!!!!

 

[Doctor]

Hey LADoc00,

Even though it was unheard of 6 months ago, I wouldn't be so quick to jump on that house at $850,000 unless you are certain that your sig will not come true. (And if you don't think it will, why is it your signature?)

The housing market will continue to correct downward, IMO. If you can get an absolute steal, do so... otherwise, there's no house I would buy right now.

 

[Whodathunkit]

I swear...I can't believe anything I read anymore...


Realtors try to prod market with full-page ads

Me thinks the real estate industry is getting a bit nervous now...

Once again...the lady Apprentice makes a few suggestions...
What to Do When a Market Cools

It was mostly blah blah blah, but I did see

Now is the time to buy!

Now's the time to jump back on board the wagon for pre-foreclosures, foreclosure properties and distressed home sales.

In the long term, real estate is always the best investment around.

Screw them. I'll wait it out a bit longer. Just to see flippers and people that overinflated their property values squirm a bit more.

It's only fair.

 

[etf]

I
In the long term, real estate is always the best investment around.

not really; historically real estate returns about 6% annually, which is about the same as bonds. stocks on the other hand are good for 9-11%. the only problem is that brokers won't let you buy $1M worth of stock and put $200K down; which i guess is a good thing since most people don't know what they're doing.