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are the sellers listening ? not in NJ it seems ...
Home prices see biggest drop in 25 years
Housing values fall 1.3 percent nationwide in the third quarter, according to a Freddie Mac survey.
December 4 2007: 12:44 PM EST
NEW YORK (CNNMoney.com) -- National home prices showed their biggest quarterly drop in 25 years during the third quarter of 2007, said a report Tuesday. Freddie Mac's (Charts, Fortune 500) home price index fell 1.3 percent on an annualized basis in the quarter, according to its survey of home purchases and mortgage refinance appraisals.
"The number of home sales fell during the third quarter, and the inventory of existing single-family homes for sale rose to 10.5 months by October, the highest level since 1985," said Frank Nothaft, Freddie Mac's chief economist.
He said that higher mortgage costs and tightened lending standards from banks had added to the challenge of buying homes.
Geographically, the Pacific region fell the most at a 5.8 percent annualized rate of decline, said Amy Crews Cutts, Freddie Mac's Deputy Chief Economist, while homes in the West South Central saw strong gains of 4.9 percent.
"The decline in home values occurred broadly across the U.S. The [index] found prices falling in seven of nine regions and in 25 states during the third quarter," said Nothaft.
The rise in the Southwest was attributed to strength in the energy sector over the period.
Freddie Mac's index is constructed from actual sales prices and appraised values of homes whose mortgages are being refinanced.
OK....so they fell less than 1.5% on an annualized basis. Buyers, however, are throwing out offers that are 10, 20, 30% below market and shocked that the sellers aren't jumping all over them- do you see the disparity between what buyers think is supposed to be happening and what's really happening???
Also, if you look at some of the reports that break things down by state, NJ actually saw a small (less than 1%) gain in average sales prices from 3Q 06 to 3Q 07, which once again shows that you can't look at RE based on "national averages".
Average 30 year fixed mortgage rate has been down 3/4 percent since August. Tomorrow Bush administration is going to announce freezing sub-prime loans in 5 years.. this means there will be no massive foreclosure in next 5 years. Today's ADP job number shows 200K jobs added in prior month. You can listen all gloom and doom talks in main stream media but the NY metro real estate market seems to take off from here again.
I think it's great that NJ sellers are holding tight and not allowing themselves to be low-balled. If I were selling and I didn't absolutely need to move, I would do the same thing. Buyers these days seem like predators trying to cash in on other peoples misfortunes with way below value bids. I say, screw'em. If you can, don't sell and just stay where you are. In the long run, prices are always going to go up.
I think it's great that NJ sellers are holding tight and not allowing themselves to be low-balled. If I were selling and I didn't absolutely need to move, I would do the same thing. Buyers these days seem like predators trying to cash in on other peoples misfortunes with way below value bids. I say, screw'em. If you can, don't sell and just stay where you are. In the long run, prices are always going to go up.
was it ok for sellers to yank buyers' chains with bidding wars 5 years ago and prey on their emotions? why is it that nowadays it's "screw buyers" when the sellers were *literally* screwing buyers for so long?
if someone low-balls and the offer is accepted, it's not a low-ball - it's a deal. feelings and misfortunes have no place in either a buyer's or seller's market.
the market is doing what it needs to do - correct itself. once done, we'll be back to how it was in the mid-90's - appreciation at modest rates.
was it ok for sellers to yank buyers' chains with bidding wars 5 years ago and prey on their emotions? why is it that nowadays it's "screw buyers" when the sellers were *literally* screwing buyers for so long?
if someone low-balls and the offer is accepted, it's not a low-ball - it's a deal. feelings and misfortunes have no place in either a buyer's or seller's market.
the market is doing what it needs to do - correct itself. once done, we'll be back to how it was in the mid-90's - appreciation at modest rates.
The second bolded statement contradicts your first, don't you think? Sellers weren't "screwing" anyone- they were simply responding to a market demand fueled by cheap money- as you said, there no place for feelings there.
The only people who could possibly be accused of doing any screwing were the mortgage companies that were writing loans that people should have never been given. And I don't feel entirely bad about what those folks did either, since the mortgagees had every opportunity to understand what they were getting into, and got greedy and wanted more house than they could realistically afford.
The second bolded statement contradicts your first, don't you think? Sellers weren't "screwing" anyone- they were simply responding to a market demand fueled by cheap money- as you said, there no place for feelings there.
The only people who could possibly be accused of doing any screwing were the mortgage companies that were writing loans that people should have never been given. And I don't feel entirely bad about what those folks did either, since the mortgagees had every opportunity to understand what they were getting into, and got greedy and wanted more house than they could realistically afford.
no, not a contradiction, i was just challenging mead's statement. if sellers weren't "screwing" anyone during the boom, then buyers aren't "screwing" sellers during the bust. i don't think anyone's getting screwed. as you said, it's the market and the climate at the time - and I agree with you 100%.
eta - how many times can the word "screwed" be used in one post? LOL
First there is no bubble in most NJ towns. Therefore, there is no bust at all. If you are misinformed by national media and present an offer 15% off last listing price, 95% chance you will be rejected.
eta - how many times can the word "screwed" be used in one post? LOL
I dunno- i'm surprised the software isn't turning them all into *****ed anyway. BTW- be careful with your language or one of the mods may give you an infraction.....lol.
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