Plunge in existing home sales steepest since ’89

[Critter]

Drop in March was 8.4% nationwide… also, prices dropped… per New York Times today.

http://www.nytimes.com/2007/04/25/business/25econ.web.html?_r=1&hp&oref=slogin

[an]

Here’s CNN’s article on the same topic.

[Critter]

And the LA Times, with more of a California slant:

http://www.latimes.com/business/la-ex-homesales24apr25,0,2737622.story?coll=la-home-headlines

[gn]

This provides further proof that, in a downturn, the builders lead the way in cutting prices. They basically destroy the resale market.

[Bugs]

By the time a house is completed the builder is in the must-sell category, same as the banks and probate and others. Thay can’t just hang out for 6 months and hope things turn around.

[23109VC]

the builders are tossing incentives around like crazy right now… but their prices are still too high.

there is an area my wife and I really like. we looked at the house. it’s a richmond home in Greer Ranch Murrieta. hthe house lists for $495k. it’s 2800 sq ft. loaded…tons of tile, hard wood, stainless appliances, granite, etc. rear landscaping..etc etc… it’s done and ready to sell/move into.

they wanted 495. i told the on site realtor/seller i’d give them 450k. they said they’d only come down 25-30k…either via a price reduction or via buy downs..but bottom line they claimed only 25k in price drops. i don’t believe them. i tink they’d go lower. this wa all via the phone…so if they will knock off 30k over the phone toa total stranger who isn’t even in the office..imagine what they would do when i wa there iwth a preapproval letter, and ready to sign a 30 day escrow….

i bet they would come dwon 100k… i’ve seen other builders READILY offering 75k-100k in incentives….

we have been on the fence about buying and seriously almost pulled the trigger on the house we are renting, but i’m coming back to just saying F** it and keeping on renting.

[waiting hawk]

Does anyone ever reflect back to just a year ago when us housing bears had cold nights in the forest? Now its spring and we came out of hibernation to watch this mess unfold.

[Author]

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