Posted on 09/21/2006 5:06:50 AM PDT by MeneMeneTekelUpharsin
The house in the link above was listed at least once at $143,000. Then, 10 days later, it was listed for $130,000 here: Click here for 1st relist. Again, it was listed here on September 14: Click here for 2nd relist. The listing claims that they've reduced it 18,000 -- so perhaps it had been listed for even more earlier. That's a pretty good drop in price.
Good News! (If you're house-hunting in Texas.)
You can't look at listing prices. Most folks overvalue things, including houses, at first. You have to look at average sale prices.
Prices have been dropping in Texas (Dallas) and Michigan for some time now. This is largely due to local conditions. (In the case of Michigan, the death spiral).
I have been seeing a noticable increase in for sale signs.
The Dallas/Ft. Worth area has had the highest foreclosure rates in Texas for the past year. There is a surplus of unsold new homes because of serious over-building. Guess we won't need all those illegals working on job sites any more and will have to send them to other states.
ping-a-ling
True, but in many regions, if you bought a house in the past 5 years and are trying to sell it now, you won't get back what you paid for it.
I'm more apt to view this as a correction because home prices have been inflated for many years now.
I wouldn't want to be heavily invested in house-flipping these days.
You hit the nail on the head.
There has been serious obverbuilding in Dallas
Too many owners listed too many houses with an increased price tag over last year. So THOSE houses are sitting, while other houses like the one my best friend just sold a month previous, sat on the market for precisely two hours with a contract for the asking price.
An illegal construction worker was arrested in Denver for dragging a woman behind a car to a gruesome death. I guess they are good for more than driving wages down. /sarc
Exactly right. There is a glut of homes on the market due to the "sheep mentality" of everyone looking to cash in on high prices at the same time. Supply and demand are at work and the equation will settle out in time.
I note that mortgage rates have DROPPED for the first time in a long while. If this trend in rates continues, look for housing activity to pick up steam.
Correct. Any R.E. agent with an ounce of knowledge will tell you that if a house is fairly priced it will sell. Fairly priced is a price at which comparable area homes have recently sold. The problem with most homeowners is they think their own home is worth more and are looking to get absolute top dollar. These are the homes that sit on the market for a year or more before the owner lowers the price and it finally sells. Had he done this in the beginning he would have had his money and been able to move on.
A bad position to be in is to have a mortgage running on a wildly expensive house.
An even worse situation to be in would be to have a pension fund that invested much in this area (like many).
A situation getting worse is if you are paid in dollar or plan any busyness based on dollar.
Bad News for my son, who has had to reduce his asking price twice (in Texas) and still can't unload his beautiful home.
sw
That's not a drop in value, just a drop in listing price. If I listed a 2br ranch for one million dollars, and then it sold for $100,000, by your logic, it would be the END OF THE WORLD: "Real Estate Prices Fall by 90%! The End is Nigh!"
ping for later
For buyers it is. Not too good for sellers. Listings I've been watching during my research are still there after quite some time in most cases. Houses are taking longer and longer to sell. The house mentioned above seems to be a pretty nice house and that is an interesting price now for a home with those features. Too bad it's not where I need a house.
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