Housing Rolling Along 2

Quote from QQQBALL:

ive been talking to good brokers so far this week. they are quoting cap rates like 150 to 200 bps where they were 6-8 months ago; we'll see when the most recent deals start closing. resi housing seems to be real slow and commercial appraisal fees have come down by 10%-15% and turn-times have been reduced by a week. SVP at a major lender told me that appraisers were calling and offering to do $2,500 jobs for $1,800. he has passed on some bids because they were too low to do an adequate job.
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Anytime the sub-industries start slashing prices to garner business, it usually doesn't bode well.

I did like the RE whore on CNBC today, saying that with the huge run ups in price, that a 5% adjustment should correct some of the froth or whatever in the market. Priceless!!!

After homes in my area run up over 225% in 5 years a 5% adjustment will be sufficient to correct. Bawahahahahahahaha!!!
 
people here are starting to sit on thier hands

whne peopel start to figure out that it will be cheaper next year, its over.

did anyone see the article that had 40% of loans as "no doc" apps?
 
My wife works in the mortgage division of a large home builder. She said it is getting worse also. Yesterday, one of her customers couldn't close on their house because their old one didn't sell in time. Then they couldn't come up with an extra $500 to close on the deal because it is 100% financing! If you don't have $500 bucks sitting around you have no business buying a house or a car. It's sad a pathetic.
 
Anybody see that cover story on the WSJ. A woman in Herndon, VA listed her home last Sept for $1.1 mil. The house has 5 bedrooms, blah, blah, blah. She started lowering the offer side. For whatever reason (I don't think they explained), she just needed out. The house wasn't selling.

She recent put it up for auction. The house sold for $530,000.

Wow, talk about a nasty execution.
 
Quote from diligent:

judging from IYR and other things... i bet this will be an EXTREMELY hard crash to time...
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just wiat until people cant stand real estate. cover stories on the virtues of renting, proeprties selling below replacement cost, etc.

yes, it could be very hard landing, the Pullback has already been rather swift.

i read that article on heardon, VA. the lady's auction had 2 bidders and didnt meet reserve price.
 
Quote from QQQBALL:

just wiat until people cant stand real estate. cover stories on the virtues of renting, proeprties selling below replacement cost, etc.

yes, it could be very hard landing, the Pullback has already been rather swift.

i read that article on heardon, VA. the lady's auction had 2 bidders and didnt meet reserve price.
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But she did sell it. Read it again

...On the morning of Aug. 5, the auctioneer, Stephen Karbelk, set up loudspeakers on Ms. Guth's side lawn. Ms. Guth handed bottles of chilled water to the several dozen bidders and curious neighbors who showed up. "I have a whole stomach full of butterflies," Ms. Guth said.

Ms. Eddy figured her chances of winning were near zero. When the auction began, it became clear that there were only two serious bidders. Although Mr. Karbelk tried to stir excitement, the bidding petered out within minutes. Ms. Eddy was the high bidder, at $475,000.

Looking stricken, Ms. Guth and one of her sons huddled with their broker for a few minutes. Then they told the auctioneer they wouldn't accept the bid, which fell below the stipulated minimum that hadn't been revealed to bidders. The auction was over.

Ms. Guth said she would move and leave the house empty until she could sell it at a reasonable price. Late that afternoon, Ms. Eddy raised her offer to $525,000. The Guths wavered for two days before agreeing to accept about $530,000. Ms. Eddy is getting a home with five bedrooms, four full bathrooms, a half-acre lot and a three-car garage for about what some people had been paying until recently for town houses in the area.
 
Auctions are a very poor way to sell houses. Even in Calgary's heated market, there have been some attempts to use the auction format. In one case, the house went for, I would estimate 40K less then the same house on MLS.

Great deal for the investor who bought it, not so great for the owner.


Quote from QQQBALL:

just wiat until people cant stand real estate. cover stories on the virtues of renting, proeprties selling below replacement cost, etc.

yes, it could be very hard landing, the Pullback has already been rather swift.

i read that article on heardon, VA. the lady's auction had 2 bidders and didnt meet reserve price.
More...
 
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