AP
Home Prices Fall for 9th Straight Month
Friday May 25, 10:10 am ET
By Martin Crutsinger, AP Economics Writer
Sales of Existing Homes Fall to the Slowest Pace in Nearly 4 Years

WASHINGTON (AP) — Sales of existing homes fell by a larger-than-expected amount in April while the median price of a home sold during the month fell for a ninth straight month as the troubles in the subprime mortgage market acted as a further drag on housing.

http://biz.yahoo.com/ap/070525/economy.html?.v=9

Nor_LA-Temcu-SD-Guy

New Home builders leading the charge down I guess, I think this happened in the 89-94 downturn as well.

History repeats I guess.

“…why would someone want to buy a USED HOME”

I know what you mean, but my answer would be:

New homes …
1) tend to be out in the boonies.
2) tend to have homeowner fees
3) have lower-quality construction
4) have virtually no landscaping.
5) have little space between houses.
6) look just like the neighbors house
7) are a pain to get fixed because the builders don’t back their work. If there are issues with a USED home, I can just get a home warranty and get issues resolved quickly

one benefit to buying a resale – and this may or may not apply to a specific home – it depends..

but with a new home you generally get the house – that’s it. if you want upgrades, you have to pay for them.

things like window coverings, landscaping, painting, appliances…a lot of these thigns do NOT come with the house.

some of the newer developments are adding more of these things to stimulate sales…

but in both of my prior houses I bought – I found relatively new homes, but they were resales. the prior owners dumped a TON of money into upgrades, landscaping, window treatment, paint – etc…. and much of that investment was LOST in that each was a desperate motivated seller who had to move it and reduced prices to the piont that had I been buying a nwe house – i couldn’t not have duplicated the amount of “extras” I obtained…

in one house I actually got a TON of furniture and TVs included with the deal – stuff that would have cost me a TON. it was brand new, nice…and as a young new home owner, i had very little furniture and what i ahd was junk…so i walked into a great situation…

you can’t always find those deals – but they are out there ..and with things softening so much and people having to sell – there are goign to be a lot more of these “deals” popping up over the enxt efw years….

i wonder how long it will take for the builders to start offering free pools with the houses…. 😉

“…why would someone want to buy a USED HOME”

I agree with sdduuuude on this one.
The number one reason is LOCATION.

Try buying a new house in Ocean Beach, Point Loma, Bay Park, Clairemont, La Jolla, Pacific Beach, Mission Hills. OR for those LA folks, where on the westside are you gonna find a new home development ? Playa Vista ? That sucks.

In any event the resale housing market numbers did suck today as you anticipated, latesummer.

I love this comment in the article:

“He said the big rise in unsold homes on the market could be an indication that sellers are testing the market in hopes of selling their homes and moving up to larger units, which he said would be a positive early sign of a rebound in housing.”

Yes. That’s why we have so many unsold homes.

C.A.R. Reports Sales Decrease 27.8 Percent in April, Median Price of a Home in California at $597,640, up 6.2 Percent from Year Ago

LOS ANGELES–(BUSINESS WIRE)–Home sales decreased 27.8 percent in April in California compared with the same period a year ago, while the median price of an existing home increased 6.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“April sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market,” said C.A.R. President Colleen Badagliacco. “Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market.”

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070525005553&newsLang=en