Posted on 01/27/2007 7:50:12 PM PST by Proud_USA_Republican
Existing-home sales in the U.S. fell in December, capping a soft year that saw demand make its sharpest drop in 24 years.
Home resales fell to a 6.22 million annual rate, a 0.8% decrease from November's revised 6.27 million annual pace, the National Association of Realtors said Thursday. November's rate was originally estimated at 6.28 million.
Sales for all of 2006 dropped by 8.4% to 6.48 million from a record 7.08 million in 2005. The drop was the sharpest since 17.7% in 1982.
(Excerpt) Read more at realestatejournal.com ...
Everyone seems to be fleeing LA & Orange Counties for the high desert. It may take a while for the bubble to pop up here. I can tell you that the rents are horrendous, and so are prices for homes on no land. Most of these new housing tracks are still sitting half empty. When I say new, I'm talking 2-3 years old.
In a few years I hope to buy a mansion on the beach and raise a family. What are your plans?
God I love making perfect decisions when everyone else is a lemming. It is a lot like this Iraq war, the truth is the truth regardless of the irrational.
In a few years I hope to buy a mansion on the beach and raise a family. What are your plans?
God I love making perfect decisions when everyone else is a lemming. It is a lot like this Iraq war, the truth is the truth regardless of the irrational.
Someone ping Hydroshock and ex-Texan. I'm sure they're dancing in sadistic joy at these numbers.
Sold my house in Eureka a couple years ago. Made 110% profit in 3 years.... didn't see it coming at all.
Annual existing home sales are still well above the pace set in 2004, considered a boom year. 2005 was even higher still, which makes the drop sound precipitous, when in fact sales are historically quite healthy.
Thanks for sharing that.
To me that indicates that those who are better off financially were the ones doing the buying. Not too difficult to understand is it? They have the cash and they are spending it.
Hi desert is glutted with homes.
At present, all the developers were tooled up from the southwest in Tuscon and Phoenix to Nevada and SoCA in the Temecula area built out Coechella valley fairly well. Palm Desert is building out, and over the past two years they've been hitting the high desert.
Of course, about 6 years ago, a hi desert 2-1 shack which sold for $28k with 10 others like it one the market waiting, now began to compete with new 2-1s for $150k. The Palm Springs market rolled over to the hi desert, resulting in pricing being market driven instead of bottom up value driven. Consequently only one in ten sold, but it only took one in five to ten in the new market to break even.
Once the locals saw how the developers were building new subdivisions where no industry existed, and prices doubling and tripling, everybody started placing their homes on the market with the same idea,...we can sell for a profit and move out of here.
Now the market is glutted with 12,000 homes to sell with only 8,000 - 20,000 jobs in the area and less than 1000 of those jobs paying over $40k/annum.
Meanwhile other developers are now proposing to build strip malls with several 50,000SF + stores and an 101,000 SF store in the strip mall in an area 50 miles from the next market with only a population of about 20000 max which is already served by several supermarkets, fast food, 20 restaurants, and department store, wit several lumber yards and large hardware stores. Such large strip malls usually need a market of about 70,000 to sustain their operation with minimal local competition, assuming several industries in the area.
Over the past 30 years, every time a new restaurant would open in the area, another would close within 6 months. The market just isn't that big, but a handful of developers have tooled up to build subdivisions and dropped capital hoping for buyers.
Consequently, foreclosures have skyrocketed in the last 3 months, other idiots still want to build more, and fewer purchasers are out there.
The only thing this boom has accomplished has been to increase the tax base, create a paper trail of 1st, 2nd and third mortgages on properties which only 10 years ago were being abandoned at tax sales for less than $100/5 acre parcel without any buyers and 2000 or so parcels left on the tax rolls unclaimed every auction.
Of course if you don't mind the 130 degree weather, water shortage, 60-150 mile 1 way commute on a rural highway, with high seismic risk, then opportunity knocks.
Of course some sellers are finally realizing their potential buyers may be screened ultimately by their choice of colors. Do they like green and some vegetation and suburban amenities, or do they prefer creosote bushes and brown sans water? For some reason, many potential homebuyers seem to want something green in return for their lifetime investments,..go figure....
These low interest rate are impossible to beat; I don't know if we will see them again.. Another thing to remeber is that California is a brand. The beaches are each their own individual brand... Ventura, Santa Barbara, San Diego, Pismo, Seal Beach, Laguna, Malibu, Port Hueneme, Newport Beach, Santa Cruz, Monterey, Big Sur... Who wouldn't want to live here? My lord, if you plan to live in CA on the coast you have to do it now or you'll miss the window.
I'm not missing the window. I love this state. I know that near coast properties are worth 750,000 dollars at todays values and you can find them all over the state for beneath 450,00..... it won't be 5-10 years where all coastal condos will be above 500,000
My ex husband and I paid 58,900 for a 3/1 in 1988. It had a large backyard, and an oversized attached garage. No insulation in the walls, either. Window swamp cooler, bah!
No jobs of significance, and so the I-15 is clogged every day with commuters. Wonder what the AQMD has to say about that? There just aren't any real employers thanks to them, but they turn a blind eye towards the commuter traffic belching exhaust fumes. Until last year, we lived parallel to the fwy. It stunk during the summer.
We had just moved up here when it was announced that George AFB was going to close. This area took a mortal hit. Boarded up houses everywhere. When Target built a store in Apple Valley, people in line were passing out from the heat. An estimated 500 people showed up to fill out applications. The fire dept showed up with bottled water, and set up some shade.
It doesn't get to 130, but last summer was pure hell. We're at 4500 ft, and thankfully we have a rooftop swamp cooler. We pay a little more than both of our old mortgages for a manufactured home, but it's on 2.5 acres. Too bad we can't grow food, because we have jack rabbits the size of beagles. Still, after moving up here, my blood pressure went down to normal, and we see all kinds of cool birds, etc. Drawbacks are no mail delivery or trash service. The septic is overflowing, but the landlord is out of town for a family emergency, so we're digging pits and looking for quick lime.
I don't want to cash in on someone else's misery, but I'm waiting for a chance for a foreclosure purchase. "The chickens are coming home to roost". After a year, we've already grown out of this home ;)
btt
Don't worry,...when the Revolution hits Mexico, there's an entire Baja ready for development.
[Everyone seems to be fleeing LA & Orange Counties for the high desert. ]
I live in OC. A year ago there were several homes for sale on our street. They've all sold. The house a couple of doors down sold a month ago. There isn't a single house for sale on our street right now.
Sales may be down - but that may be because people are not just not interested in either selling or buying right now.
I think the market slowdown is in large part due to the exhaustion of the sub-prime market. There just ain't no more fish in that pond.
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