Forbes: Housing Woes Hit High End Too

[lendingbubblecontinues]

My bumper sticker: “Told you so”

[cyphire]

I’ll re-look – but I don’t think that 2002 is the inflation adjusted price… Will get back to you.

[cyphire]

I’ll re-look – but I don’t think that 2002 is the inflation adjusted price… Will get back to you.

[cyphire]

I’ll re-look – but I don’t think that 2002 is the inflation adjusted price… Will get back to you.

[mgubnyc1]

Easy stockstradr, Jack played a bad guy in that movie that ended up in jail! first of all I’m glad for you that you sold your house at the right time and made lots of money and 2nd I would hate to be one of your friends these days.

Since you seem to have quite an insight of what is going on could you please explain to me why you think the North East is not experianceing the same terrible decreases as the Mid West the West and the South.
I live in the North East and I have to be honest I am not seeing the “blood in the streets” you are seeing in the West
in fact the prices seem to be holding steady.

I took from MSN this morning.

“Sales were off 1.7% in the Northeast from a year ago, down 11.5% from a year ago in the Midwest, 11.5% in the South and 9.1% in the West.
The median sales price of a single-family home declined 1% from a year ago to $228,600. The median condo sales price actually rose 2.4% from a year ago to $230,600, mostly due to gains in the Northeast and Midwest. The median price in the West fell 3.2% to $264,500.”

[mgubnyc1]

Easy stockstradr, Jack played a bad guy in that movie that ended up in jail! first of all I’m glad for you that you sold your house at the right time and made lots of money and 2nd I would hate to be one of your friends these days.

Since you seem to have quite an insight of what is going on could you please explain to me why you think the North East is not experianceing the same terrible decreases as the Mid West the West and the South.
I live in the North East and I have to be honest I am not seeing the “blood in the streets” you are seeing in the West
in fact the prices seem to be holding steady.

I took from MSN this morning.

“Sales were off 1.7% in the Northeast from a year ago, down 11.5% from a year ago in the Midwest, 11.5% in the South and 9.1% in the West.
The median sales price of a single-family home declined 1% from a year ago to $228,600. The median condo sales price actually rose 2.4% from a year ago to $230,600, mostly due to gains in the Northeast and Midwest. The median price in the West fell 3.2% to $264,500.”

[mgubnyc1]

Easy stockstradr, Jack played a bad guy in that movie that ended up in jail! first of all I’m glad for you that you sold your house at the right time and made lots of money and 2nd I would hate to be one of your friends these days.

Since you seem to have quite an insight of what is going on could you please explain to me why you think the North East is not experianceing the same terrible decreases as the Mid West the West and the South.
I live in the North East and I have to be honest I am not seeing the “blood in the streets” you are seeing in the West
in fact the prices seem to be holding steady.

I took from MSN this morning.

“Sales were off 1.7% in the Northeast from a year ago, down 11.5% from a year ago in the Midwest, 11.5% in the South and 9.1% in the West.
The median sales price of a single-family home declined 1% from a year ago to $228,600. The median condo sales price actually rose 2.4% from a year ago to $230,600, mostly due to gains in the Northeast and Midwest. The median price in the West fell 3.2% to $264,500.”

[cyphire]

First of all – the percentage claims you are talking about are, as usual, vastly underreporting what is actually going on. Median prices mean NOTHING. When the cheaper houses no longer can sell (the people who buy the less expensive houses get the crisis first) – only the more expensive homes sell. The most expensive homes always sell, irregardless of what is happening in the market. These factors push up the median price.

The orphan homes (all the homes which have some flaws) – do not sell at all. Only desirable (usually) homes still sell in this marketplace and they aren’t being given away.

The New York city prices have only just started to go down – they were getting more and more expensive correlating to the huge profits being made on wall street.

The most important aspect of the whole lying with statistics deal is that it is not measuring the homes being withdrawn from the market because the market is saturated – and it also proves that we are on a precipice. We have NOT YET experienced a downturn in the economy due to the consumer credit crisis which will follow the liquidity crisis. When the economy sours from real estate and credit the home sales will go down.

Also the vast numbers of adjustables haven’t even reset yet. They will – other than bail outs by the government. Look at today’s new york times.

[cyphire]

First of all – the percentage claims you are talking about are, as usual, vastly underreporting what is actually going on. Median prices mean NOTHING. When the cheaper houses no longer can sell (the people who buy the less expensive houses get the crisis first) – only the more expensive homes sell. The most expensive homes always sell, irregardless of what is happening in the market. These factors push up the median price.

The orphan homes (all the homes which have some flaws) – do not sell at all. Only desirable (usually) homes still sell in this marketplace and they aren’t being given away.

The New York city prices have only just started to go down – they were getting more and more expensive correlating to the huge profits being made on wall street.

The most important aspect of the whole lying with statistics deal is that it is not measuring the homes being withdrawn from the market because the market is saturated – and it also proves that we are on a precipice. We have NOT YET experienced a downturn in the economy due to the consumer credit crisis which will follow the liquidity crisis. When the economy sours from real estate and credit the home sales will go down.

Also the vast numbers of adjustables haven’t even reset yet. They will – other than bail outs by the government. Look at today’s new york times.

[cyphire]

First of all – the percentage claims you are talking about are, as usual, vastly underreporting what is actually going on. Median prices mean NOTHING. When the cheaper houses no longer can sell (the people who buy the less expensive houses get the crisis first) – only the more expensive homes sell. The most expensive homes always sell, irregardless of what is happening in the market. These factors push up the median price.

The orphan homes (all the homes which have some flaws) – do not sell at all. Only desirable (usually) homes still sell in this marketplace and they aren’t being given away.

The New York city prices have only just started to go down – they were getting more and more expensive correlating to the huge profits being made on wall street.

The most important aspect of the whole lying with statistics deal is that it is not measuring the homes being withdrawn from the market because the market is saturated – and it also proves that we are on a precipice. We have NOT YET experienced a downturn in the economy due to the consumer credit crisis which will follow the liquidity crisis. When the economy sours from real estate and credit the home sales will go down.

Also the vast numbers of adjustables haven’t even reset yet. They will – other than bail outs by the government. Look at today’s new york times.

[SHILOH]

Not everyone posting expects prices to fall for the opportunity to grab a coastal property. Prices are just inflated all over the market. When homes in City Heights Logan Heights or the Barrio were priced at $450K –Some of these places are so structurally run down and old..it’s questionable whether they would pass inspection w/o a rehaul. The point being,lower markets are overvalued. Also…San Ysidro. It’s obvious and ridiculous.

[SHILOH]

Not everyone posting expects prices to fall for the opportunity to grab a coastal property. Prices are just inflated all over the market. When homes in City Heights Logan Heights or the Barrio were priced at $450K –Some of these places are so structurally run down and old..it’s questionable whether they would pass inspection w/o a rehaul. The point being,lower markets are overvalued. Also…San Ysidro. It’s obvious and ridiculous.

[SHILOH]

Not everyone posting expects prices to fall for the opportunity to grab a coastal property. Prices are just inflated all over the market. When homes in City Heights Logan Heights or the Barrio were priced at $450K –Some of these places are so structurally run down and old..it’s questionable whether they would pass inspection w/o a rehaul. The point being,lower markets are overvalued. Also…San Ysidro. It’s obvious and ridiculous.

[Bugs]

mgubnyc1,

Now that you’ve identified yourself as not being local to SDs market I can understand why you aren’t seeing what we’re seeing.

RE markets are all local. There are a lot of markets that never got grossly distorted; those markets are not subject to significant corrections. San Diego and many of the other metro markets are not among those relatively stable markets and so they are subject to corrections.

Different areas entered into the increasing market trends at different times and will likewise enter into declining trends at different times.

“Hasn’t happened yet” was a favorite rationale used by the bulls to explain why the bears were wrong in their predictions that an overwound market must eventually unwind. Obviously here in SD those bulls have had to eat crow as current events have proven that “Hasn’t happened yet” does not equal “Won’t happen”. You don’t want to follow their example and make their mistake.

How the market reacts in you area is subject to local economic conditions. Hopefully your region’s RE pricing structure is reasonably in balance with its economic fundamentals. If not, anyone who’s overexposed might be well served in considering their exit strategy now.

[Bugs]

mgubnyc1,

Now that you’ve identified yourself as not being local to SDs market I can understand why you aren’t seeing what we’re seeing.

RE markets are all local. There are a lot of markets that never got grossly distorted; those markets are not subject to significant corrections. San Diego and many of the other metro markets are not among those relatively stable markets and so they are subject to corrections.

Different areas entered into the increasing market trends at different times and will likewise enter into declining trends at different times.

“Hasn’t happened yet” was a favorite rationale used by the bulls to explain why the bears were wrong in their predictions that an overwound market must eventually unwind. Obviously here in SD those bulls have had to eat crow as current events have proven that “Hasn’t happened yet” does not equal “Won’t happen”. You don’t want to follow their example and make their mistake.

How the market reacts in you area is subject to local economic conditions. Hopefully your region’s RE pricing structure is reasonably in balance with its economic fundamentals. If not, anyone who’s overexposed might be well served in considering their exit strategy now.

[Author]

Posts