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Thread: Home Prices Plunge by Most in 35 Years

  1. #31
    jbtrailerjim
    Try this. http://www.realtor.com/FindHome/Home...9&lnksrc=00002
    And thats a cheap one that I'm looking at.
    What a joke. I'd commute before I'd pay that kind of dough for a little 2 bedroom 1 bath dump like that.

  2. #32
    AirtimeLavey
    Sheesh....come on guys, read the article. It's about NEW home prices and what the builders are doing to get them sold. The used home market still saw 1.8% appreciation. It's a different game, although it will have some crossover impact. This is how rumors and panic starts....assumptions based on half the information... :hammerhea
    The headline is media hype, and people don't bother to read the article. If you think the bubble has burst and you're wanting to bail on your house, let me know, I'll help you get out of it before it bottoms out and you lose everything! (j/k, of course).
    Home Prices Plunge by Most in 35 Years
    Thursday October 26, 1:50 pm ET
    By Martin Crutsinger, AP Economics Writer
    New Home Prices Fall by the Largest Amount in More Than 35 Years
    WASHINGTON (AP) -- The median price of a new home plunged in September by the largest amount in more than 35 years, even as the pace of sales rebounded for a second month.
    The Commerce Department reported that the median price for a new home sold in September was $217,100, a drop of 9.7 percent from September 2005. It was the lowest median price for a new home since September 2004 and the sharpest year-over-year decline since December 1970. The weakness in new home prices was even sharper than a 2.5 percent fall in the price of existing homes last month, which had been the biggest drop on record.
    The price decline for new homes came while the sales pace picked up, rising by 5.3 percent to a seasonally adjusted annual rate 1.075 million homes. It marked the second consecutive increase in sales following three months of declines.
    The declines in prices served to underscore the severity of the correction in the once-booming housing market, which had seen sales of both new and existing homes soar to record levels for five consecutive years, propelled by the lowest mortgage rates in more than four decades.
    This year, with mortgage rates rising through midsummer, sales have cooled considerably, with housing expected to trim more than a percentage point from overall growth in the last half of the year.
    The debate is whether the slowdown will be enough to push the country into an outright recession. The Federal Reserve, recognizing the weakness in housing, halted a two-year string of interest rate increases in August and left rates unchanged for a third straight meeting on Wednesday.
    The Fed, however, gave no indication that it planned to start cutting rates because of the weakness in housing, saying it was still concerned that inflation remained too high.
    The 5.3 percent rise in new home sales in September followed a 3.8 percent rise in August and was the biggest one-month gain since an 8 percent increase in March. However, sales had fallen for three straight months from May through July.
    The rise in sales last month was led by a 23.9 percent jump in the West. Sales were also up 6.9 percent in the South. However, sales fell by 34.5 percent in the Northeast and were down 6.3 percent in the Midwest.
    In other economic news, the government said that orders to U.S. factories for big-ticket manufactured goods, powered by a huge jump in demand for commercial jetliners, soared in September by the largest amount in more than six years.
    The Commerce Department reported that orders for durable goods rose by 7.8 percent last month to $226.7 billion. The increase followed two consecutive months of declines and was the biggest gain since June 2000.
    The improvement was more than triple the 2.3 percent gain that Wall Street had been expecting, but virtually all of the strength came from a giant 183.2 percent increase in orders for commercial aircraft. Outside of transportation, orders were up a far weaker 0.1 percent.
    In a third report, the Labor Department said the number of newly laid off workers filing claims for unemployment benefits rose by 8,000 last week to a seasonally adjusted 308,000. That increase was in line with expectations.
    The September 7.8 percent increase in factory orders followed declines of 0.1 percent in August and 2.8 percent in July. Despite last month's jump, analysts believe that the factory sector is slowing under the impact of a weakening overall economy.
    The economy began the year with growth at a sizzling pace of 5.6 percent at an annual rate but saw that slow to 2.6 percent in the spring and analysts believe overall economic growth in the just-completed July-September quarter slowed even further to around 2 percent or less. The government will report the actual third quarter figure on Friday.
    For September, transportation orders rose by 27.6 percent as the big jump in demand for commercial aircraft offset a 6.1 percent drop in orders to automakers, who have been struggling recently under the impact of weak sales of trucks and sport utility vehicles.
    The rise in commercial airplane orders had been expected, given that Boeing Co. booked new orders for 175 planes, up from 30 in the prior month.

  3. #33
    VanDeano
    I bought two home in Lake Elsinore 65% below market in June.
    Sold one at FULL asking price and sitting on the other for a rental.
    In Escrow on a third, bought 65% below market and will rent out. Prices might be adjusting, but money can still be made in the long haul and the short, if BOUGHT right!!!
    And how did you manage that! Please tell how we can "Bought Right"...I think your watching to many late night "info commercial"

  4. #34
    CARLSON-JET
    And how did you manage that! Please tell how we can "Bought Right"...I think your watching to many late night "info commercial"
    I can only guess somebody had alot of equity in those houses and something happend that they lost them. To someone who just bought a house and foreclosed the lender would not sell for 65% less then what the loan was for. Unless there was a second mortgage and that mortgage company just took the hit. Usually the second lender would buy the first lender out and ride it out until it sold. I bought a house in Jan at a sherriff sale for the same price the owner had paid in 2003. previous owner made alot of improvements but then stopped paying the mortgage. We walked into alot of equity. With that and some remodeling we brought it up about 33%. still only cleared about 25% after everything. That was with us listing it and doing all the labor. In my opinion when you factor in inflation and the average blue collar worker not gaining in salary compaired to white collar professionals there is trouble. Not everyone gets to work at the bank. :wink: R.B.

  5. #35
    lawbreaker2
    Try this. http://www.realtor.com/FindHome/Home...9&lnksrc=00002
    And thats a cheap one that I'm looking at.
    You have got to be kidding me, That is just plain over priced, I feel like I'm living like a king over here. :rollside:

  6. #36
    jdogginla
    Sheesh....come on guys, read the article. It's about NEW home prices and what the builders are doing to get them sold. The used home market still saw 1.8% appreciation. It's a different game, although it will have some crossover impact. This is how rumors and panic starts....assumptions based on half the information... :hammerhea
    The headline is media hype, and people don't bother to read the article. If you think the bubble has burst and you're wanting to bail on your house, let me know, I'll help you get out of it before it bottoms out and you lose everything! (j/k, of course).
    Not only is it based on NEW home prices, but the article written is from the state of washington. Markets differ........the actuality for most here on the boards is that homes in los angeles still saw a 2% increase as AT Lavey stated. Homes in the San Bernadino County dropped 3%.......Homes are selling if priced right. You will no longer get the person that will pay you 25k over asking price because they got the 5% 30yr fixed loan and WANT that house. But if your home is priced right it will sell with a lil patience.
    Now on another note.............HERE COME THE FORECLOSURES! Those bad boys are up! I have no quams for the guy who wants to refi his house and take out 50-70k to buy his boat when he has 200-250k in equity. You are in essence buying your boat and having it be tax deductible. I say this within reason..... It's all the bone heads who took out 200-250k in equity that bought the big boats, the sand rails, the lifted f250's on a no interest loan and now have to pay up because they walked around with blinders on. I feel for ya.....

  7. #37
    wsuwrhr
    ...now on another note.....LET'S SEE THE FORECLOSURES!
    I would like to find one.
    Brian
    Now on another note.............HERE COME THE FORECLOSURES! Those bad boys are up!

  8. #38
    HTRDLNCN
    Lets not forget tax+insurance. If your gonna hold a house for a couple years before selling thats a big part of the equation.
    My last house was only $269k when I bought it 4 years ago and paid $7000 a year in combined tax and insurance. Add in the morgate intrest you pay on an 80% morgate in the first few years and your looking over $20k a year.
    The house would have to appreciate over 10% a year for it to be worthwhile
    or rent for at least $2750 a month. In my case you would be lucky to get $1500
    a month. In south florida renting is a losing propisition
    In my case it was as I sold it for $400k earlier this year before the market got too slow but if you add up everything I paid in tax+insurance+intrest+closing costs I made less than $40k after holding it for 4 years.. From what I have read you Cali guys have it even worse on the tax front.
    Here in central Texas the property isnt appreciating anywhere near as much
    as in south florida however I can buy houses for 1/3 the cost,tax+insuranceis less than half and renting leaves me a good return.

  9. #39
    Cole
    And how did you manage that! Please tell how we can "Bought Right"...I think your watching to many late night "info commercial"
    NOD list....
    foreclosure list....
    Real Estate agents keeping an eye out for uder priced homes....
    Wholesalers....
    Birddogs....
    And my supply of "get rich' quick tapes...lol

  10. #40
    wsuwrhr
    As I keep asking.,,,,how does one find these things for personal consumption only?
    Brian
    NOD list....
    foreclosure list....
    Real Estate agents keeping an eye out for uder priced homes....
    Wholesalers....
    Birddogs....
    And my supply of "get rich' quick tapes...lol

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