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Housing Bubble Bursting?
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Randolph Kinney
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September slow for home resales
September slow for home resales
Median price lower than last year's for 1st time in decade
Glen Creno
The Arizona Republic
Oct. 11, 2006 12:00 AM
The Valley's resale housing market continued to slow in September as the market struggled to find a bottom.
The number of houses sold fell and, for the first time in a decade, the median price was down from the same time last year, according to the latest resale report by the Arizona Real Estate Center at Arizona State University Polytechnic.
The price drop rattles one of the fundamental assumptions of Phoenix housing: Buy a home and it will probably be worth more next year. It's another reason for skittish buyers to stay on the sidelines.
"The problem gets to be what is the incentive to move into the market?" said Jay Butler, head of the real estate center.
It's also bad news for people who bought at the peak of the market who are finding their houses no longer are worth what they paid. People who need to sell now because of a relocation or other non-negotiable reasons could lose thousands of dollars on their housing investments.
Scottsdale residents Kyle and Jaci Olsen are seeing that phenomenon firsthand. They bought two investment homes in Scottsdale last year, and one has been on the market for 10 months. They paid $415,000 for it and dropped in $40,000 to $50,000 in renovations. Now, it's now listed for $435,000 after coming to market at $499,000.
The couple will list the other house this weekend. Kyle Olson expects it to fare better because they spent $45,000 to completely remodel it, something they hope sets it apart from other resales that have had only the requisite touching up. They bought the house for $430,000 and will try to sell it for $529,000. They originally hoped to get $599,000. "That's how much the market has come down," Kyle Olsen said.
Analysts say one of Phoenix's chief housing problems, other than affordability, is the glut of new and resale homes on the market.
Sexton said it's pointless for sellers to obsess over last year's prices. They're not going to get them.
"Comparing to last year, you're setting yourself up to find a six-story building to jump from," he said. "You can't be too greedy."
September slow for home resales
Median price lower than last year's for 1st time in decade
Glen Creno
The Arizona Republic
Oct. 11, 2006 12:00 AM
The Valley's resale housing market continued to slow in September as the market struggled to find a bottom.
The number of houses sold fell and, for the first time in a decade, the median price was down from the same time last year, according to the latest resale report by the Arizona Real Estate Center at Arizona State University Polytechnic.
The price drop rattles one of the fundamental assumptions of Phoenix housing: Buy a home and it will probably be worth more next year. It's another reason for skittish buyers to stay on the sidelines.
"The problem gets to be what is the incentive to move into the market?" said Jay Butler, head of the real estate center.
It's also bad news for people who bought at the peak of the market who are finding their houses no longer are worth what they paid. People who need to sell now because of a relocation or other non-negotiable reasons could lose thousands of dollars on their housing investments.
Scottsdale residents Kyle and Jaci Olsen are seeing that phenomenon firsthand. They bought two investment homes in Scottsdale last year, and one has been on the market for 10 months. They paid $415,000 for it and dropped in $40,000 to $50,000 in renovations. Now, it's now listed for $435,000 after coming to market at $499,000.
The couple will list the other house this weekend. Kyle Olson expects it to fare better because they spent $45,000 to completely remodel it, something they hope sets it apart from other resales that have had only the requisite touching up. They bought the house for $430,000 and will try to sell it for $529,000. They originally hoped to get $599,000. "That's how much the market has come down," Kyle Olsen said.
Analysts say one of Phoenix's chief housing problems, other than affordability, is the glut of new and resale homes on the market.
Sexton said it's pointless for sellers to obsess over last year's prices. They're not going to get them.
"Comparing to last year, you're setting yourself up to find a six-story building to jump from," he said. "You can't be too greedy."
Couch Potato
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6 hours is fast.
Most of us have taken more than 6 months to read it. :new_smile-l:Doug Walker said:
Bobby Bucks
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I liken it to the Oprah show. I've never seen an entire episode, but if someone is screaming loud enough or threatening someone I watch a few minutes of it.Doug Walker said:
Housing Crash & The Ripples
America transformed from a nation of industry into a nation of providing *service*. Outsourcing the service industry like IT jobs continues.
Historically speaking, no country has ever survived by becoming a nation of consumers. The trade deficit continues to grow in Communist China's favor.
Americans continue to flock to retail outlets such as Wal*Mart that line their shelves with merchandise from Red China who pays their employee's 17 cents an hour.
Shameless spending and greed in America has also contributed to the eradication of the middle-class. Poverty in the U.S. grew consistently from 2001-2005, oddly enough so did the *Housing Bubble*.
American Poverty / August 30, 2006
http://www.commondreams.org/news2006/0830-08.htm
The housing bubble was the only illusion of wealth left that Americans had. The worst has yet to come. The financial tsunami will arrive after the ripples.
US trade deficit hits $70 Billion due to China imports / Friday: Oct. 13, 2006
http://www.gulf-daily-news.com/Story.asp?Article=158613&Sn=BUSI&IssueID=29207
Another Stealth Depression in the Making / Friday: October 13, 2006
http://www.howestreet.com/articles/index.php?article_id=3161
1,300 Jobs Lost in Sonoma County's Housing Slowdown / Oct. 12, 2006
http://www1.pressdemocrat.com/apps/pbcs.dll/article?AID=/20061012/NEWS/610120304
Most items sold in America are "Made in China": The Death of American Manufacturing Feb. 2006
http://www.thetrumpet.com/index.php?page=article&id=1955
*The borrower is servant to the lender: Owe No Man Anything*
America transformed from a nation of industry into a nation of providing *service*. Outsourcing the service industry like IT jobs continues.
Historically speaking, no country has ever survived by becoming a nation of consumers. The trade deficit continues to grow in Communist China's favor.
Americans continue to flock to retail outlets such as Wal*Mart that line their shelves with merchandise from Red China who pays their employee's 17 cents an hour.
Shameless spending and greed in America has also contributed to the eradication of the middle-class. Poverty in the U.S. grew consistently from 2001-2005, oddly enough so did the *Housing Bubble*.
American Poverty / August 30, 2006
http://www.commondreams.org/news2006/0830-08.htm
The housing bubble was the only illusion of wealth left that Americans had. The worst has yet to come. The financial tsunami will arrive after the ripples.
US trade deficit hits $70 Billion due to China imports / Friday: Oct. 13, 2006
http://www.gulf-daily-news.com/Story.asp?Article=158613&Sn=BUSI&IssueID=29207
Another Stealth Depression in the Making / Friday: October 13, 2006
http://www.howestreet.com/articles/index.php?article_id=3161
1,300 Jobs Lost in Sonoma County's Housing Slowdown / Oct. 12, 2006
http://www1.pressdemocrat.com/apps/pbcs.dll/article?AID=/20061012/NEWS/610120304
Most items sold in America are "Made in China": The Death of American Manufacturing Feb. 2006
http://www.thetrumpet.com/index.php?page=article&id=1955
*The borrower is servant to the lender: Owe No Man Anything*
JSmith43
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For political reasons, balance of payment imbalances are often called deficits, with the implication that it is somehow bad for the country that buys more from than it sells to a particular country.
We get the cheap goods. They aren't going to repossess them. What do you think they are going to do with all those accumulated dollars? They will probably buy some of our inflated RE at the top and sell at the bottom, kind of like Japan
What Red China is doing with all that American money is strengthing their military not buying inflated U.S. *matchstick* residential construction.
United States: Red China Says ‘Shut Up' / August 21, 2006
http://www.nysun.com/article/38231
Get Serious About China's Rising Military / May 25, 2006
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/24/AR2006052402431.html
China's Calls Second Manned Space Mission a Success / Oct 17, 2005
http://www.globalsecurity.org/space/library/news/2005/space-051017-voa01.htm
How China can burst U.S. housing bubble / August 14, 2005
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/08/14/INGN3E5T5D1.DTL
Does the Future Belong to China? May 9, 2005
http://www.msnbc.msn.com/id/7693580/site/newsweek/
Analysts Missed Chinese (Military) Buildup / June 9, 2005
http://www.washtimes.com/national/20050609-120336-4092r.htm
United States: Red China Says ‘Shut Up' / August 21, 2006
http://www.nysun.com/article/38231
Get Serious About China's Rising Military / May 25, 2006
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/24/AR2006052402431.html
China's Calls Second Manned Space Mission a Success / Oct 17, 2005
http://www.globalsecurity.org/space/library/news/2005/space-051017-voa01.htm
How China can burst U.S. housing bubble / August 14, 2005
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/08/14/INGN3E5T5D1.DTL
Does the Future Belong to China? May 9, 2005
http://www.msnbc.msn.com/id/7693580/site/newsweek/
Analysts Missed Chinese (Military) Buildup / June 9, 2005
http://www.washtimes.com/national/20050609-120336-4092r.htm
But what about the list of countries that died out by being a "nation of consumer?"
FWIW, North Korea did the same thing with the money they got from the Clinton Adminstration. Funny thing is, the only way to stop any of them from getting nukes is to do what was done in Iraq.
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