[nychiefsfan]

There was an article in the San Diego Tribune in which a lot of what was said reflects the FL market:

Home sales may be nearing bottom

"It's not a full-on buyers' market because a lot of sellers are still holding onto their prices, or coming down only a little bit," said Dennis Smith, a real estate agent in Carlsbad...
Home sales may be nearing bottom North County Times - North San Diego and Southwest Riverside County News

[nychiefsfan]

Realty Red Flags
“This year, we’re going to see prices drop in every market across the country for the first time since the Great Depression,” said Steven Smith, a property appraiser and consultant from San Bernardino.

Smith predicted that home values throughout the country will fall 25 percent to 50 percent below what they were at their peak, which was in 2005 or 2006, depending on the region.

“Builders are continuing to lower prices and offer incentives to buyers,” said Joanna Terry, a senior manager for Hanley Wood Market Intelligence, a real estate research firm. In addition, she said, many builders are including upgrades without charging extra.

“We have not hit the bottom yet in prices. There’s just too much inventory,” said Glenn Race, sales man- ager for Prudential California Realty. “It will take time for the next recovery, perhaps four to five years.”

Modbee.com | The Modesto Bee :: Realty Red Flags (broken link)

[nychiefsfan]

Home sales slump badly

When juxtaposed, a pair of real estate surveys late last month raise a curious question: How much of South Florida's housing crunch is related to unrealistic and stubborn sellers?

The first study, of new home sales in March, saw a 16 percent increase over the same month a year ago, the highest hike in 14 years. The report also noted that builders slashing prices fueled the increase.

The second study, released a day later, focused on Florida's home resale market. Sales of existing single-family homes fell 26 percent this past April when compared to the results from same month in 2006.

The median price for existing single-family homes was $237,800, just a 3 percent decrease.

Comparing state figures on existing homes to national new home stats is, ultimately, an apples-to-oranges proposition. Economics and critical details vary way too much across the country for such a simplistic analysis.

Still, considering that the April 2007 median price for a home in Florida still hovered nearly 80 percent higher than it was five years ago for the same month, even as sales dried up, has to make people wonder. Is the severe housing slump we're experiencing only the result of tax shock, or has it also slowed because sellers want prices that the market simply can't afford?

The answer undoubtedly is a little of both, especially since offering sellers the prices they're asking guarantees a sharp tax hike after the property is reassessed.

Sure, it's time for rationality in the property tax system. The inequities and the shift of the tax burden from homesteaded to non-homesteaded properties has to be addressed.

Still,

BOTTOM LINE: Blame taxes, sure, but many sellers are being unrealistic.

Real Estate: South Florida Sun-Sentinel

[verobeach]

This is how it starts... or ends. And you think none of these people want to come to Florida?

Declining home prices boost sales - The Boston Globe

Declining home prices boost sales
Boston area heating up after slow year
By Robert Gavin, Globe Staff | June 4, 2007

Sliding home prices are bringing out buyers in Greater Boston, increasing sales, reducing inventories, and even reviving bidding wars in some communities...

[SKB]

These price reductions are just the start. Notice how some are still falling for "bidding wars". Oh please, the shills, the shills. How dumb can people be?

There are always going to be stupid, anxious people that think a mere 50K reduction is a great deal and they will buy.
This is what is going to give us the false bottoms along the way.

We have a LONG way to go before this thing is over.

Here is some excellent reading while you are waiting:

Housing Crash Continues, Bubble Pops

[nychiefsfan]

Originally Posted by SKB

These price reductions are just the start. Notice how some are still falling for "bidding wars". Oh please, the shills, the shills. How dumb can people be?

I agree. If I give someone an offer, that's my first and final offer. If the realtor comes back telling me there's a counter offer, I won't accept it.

I'm not playing that game, either.

[nychiefsfan]

Recession Writing is on the Wall

WASHINGTON – Orders to U.S. factories posted a weaker-than-expected gain in April as declines in demand for cars, planes and boats offset strength in business investment.

The U.S. Commerce Department reported Monday that factory orders increased by 0.3 per cent in April, the weakest showing in three months. It was less than half of the 0.8 per cent increase that analysts had been expecting.

Still, economists were encouraged that orders for non-defence capital goods excluding aircraft – a category considered a good proxy for business investment – was up a strong 2.1 per cent in April following an even larger 4.6 per cent rise in March.

The lower-than-expected overall reading reflected a 1.6 per cent drop in orders for transportation equipment, an extremely volatile category that had soared by 13.6 per cent the previous month.

Orders for motor vehicles and parts fell by 3.3 per cent, reflecting continuing problems that domestic automakers are having with sagging demand in the face of soaring gasoline prices.

Orders for commercial aircraft plunged by 10.7 per cent after having posted huge gains in the past two months.

Demand for ships and boats was down 23.4 per cent, a reversal after a large 13.3 per cent increase the previous month.

The 0.3 per cent increase in orders followed a big 4.1 per cent jump in March that had been powered by the strength in commercial airplane orders.

Even with the slower April showing, analysts believe that manufacturing is beginning to revive after a slowdown that reflected the weakness in the overall economy.

The gross domestic product, a measure of the economy's total output, rose at a barely discernible 0.6 per cent in the first three months of the year, reflecting continuing troubles in the country's housing industry.

However, many economists believe that figure will represent the low point for the slowdown. They are expecting gradually stronger numbers as the year progresses, although they caution that this outlook could prove too optimistic if the housing slump deepens further.

Orders for durable goods, items expected to last three or more years, rose by 0.8 per cent, slightly better than the 0.6 per cent increase initially reported.

One of the biggest declines for durable goods was a 31.5 per cent plunge in construction machinery, reflecting continued troubles in home-building, where contractors are slashing building plans in the face of slumping demand.

Orders for non-durable goods edged down 0.2 per cent in April as oil refineries continue to struggle with unexpected shutdowns.
TheStar.com - Business - Slower car sales dampen U.S. factory demand

[info please]

Well if something happens and you had to sell .you might not get your price.this was a very different market this time.

[nychiefsfan]

[nychiefsfan]