2 keywords from my prior post. 1) southern palm beach county, 2) good location properties. places with ghettos surrounding it, will have to fall 50% or more for people interested in them to even be able to start thinking they can somewhat afford to buy.
I wonder how the NAR is going to juice the numbers when YOY isn't going to have last summers jump. I'm more interested in what's happening from prior month, not YOY.
You know things are truly absurd when a trailer in signal hill is selling for 600K +. A business associates house in Long beach more than tripled in value since 1998 ... this is for a bungalow. Palm springs, Orange county, LA county, and the bay area counties - san mateo, santa clara etc are completely out of whack. They will adjust and not in a good way .... It will be a slow burn down for a couple of years before it stabilizes.......
At long last, a new home sale slump http://money.cnn.com/2006/03/24/news/economy/newhome_sales/index.htm
Real estate's continuing rally defies expectations In a solid first quarter for U.S. mutual funds, the standout sector was one that wasn't even supposed to be on the scoreboard: real estate. Despite widespread expectations the sector would cool in 2006, real-estate mutual funds turned in the best quarterly performance of any U.S. stock-fund category, gaining 13.8% this year through March 30, according to preliminary results from research firm Lipper Inc. "A lot of people read obituaries for real-estate funds in late 2005, and pulled out and took profits," said Don Cassidy, a Lipper senior research analyst. But "REITs are moving up again, and investors don't want to miss out on the action." <IMG SRC=http://www.marketwatch.com/News/Story/Image.aspx?Guid=225bf73a5a3a4cf0b364fe86689df153&Track=201> ---------- Kinda funny.
http://news.yahoo.com/s/usatoday/20...homeownersstruggletokeepupwithadjustablerates Some homeowners struggle to keep up with adjustable rates go MARKET!!! I love 100% up room to go
sales in california seem to be slowing. my aunt has a rental unit on the market for a while now and no buyers yet. i think she may have waited 6 months too long to sell it. if anyone is looking for income property in the bay area contact the realtor. http://www.interorealestate.com/Search/PropDetail.aspx?listingId=12-4-40147630
Second homes were a large portion of the sales last year. http://news.yahoo.com/s/usatoday/20060405/bs_usatoday/secondhomes40ofmarket
Apt timing for this article, the 10 year treasury today is at a 4 year high, the trend is not the friend for up to 80% of borrowers in bubble zones. Months ahead will be painful and the weak hands will have their trees shaken hard...OWP http://www.washingtonpost.com/wp-dyn/content/article/2006/04/06/AR2006040602088.html "....regulators are "closely monitoring" the growth of loan types in which the payments can suddenly double, creating a payment shock that could force borrowers into foreclosure if housing values were to fall and could also cause financial losses for the lenders who make the loans. John M. Reich, director of the Office of Thrift Supervision, is troubled by high-risk home loans. Reich called the increase in such lending troubling. He noted that regulators are crafting a specific warning to the industry, known as a guidance, that will restrict the use of these loans. It could be issued within the next few months. About two-thirds of all people who bought homes in the Washington area in 2005 used interest-only or option mortgages, many of which have adjustable interest rates, up from 2.2 percent in 2000, according to statistics compiled by LoanPerformance, a real estate information firm. These loans generally have lower monthly payments than traditional fixed-rate loans, at least at the start, but carry the risk that payments could jump steeply. Local mortgage brokers say borrowers are taking out these loans because it is the only way they can afford to buy a home today. These loans allow borrowers to pay just the interest on the debt, not to pay down the principal, which reduces the monthly expense at the beginning of the loan term. "These types of products have been enablers when it comes to allowing home prices to rise," said Christopher Cruise, a Silver Spring-based mortgage trainer who runs classes for lenders and regulators around the country. "Without these products, homes couldn't be purchased. If they are taken off the market, it could precipitate a disaster of epic proportions."