Posted on 06/27/2009 9:45:32 AM PDT by FromLori
There have been bad housing markets before, but never in post-World War II history has the market for new homes suffered as badly as it has in this decline.
Multimedia
Graphic In a Bad Housing Market, New-Home Sales Suffer Most That plunge raises questions about whether some homes built during the boom will ever be sold. It could also suggest that home builders have been slow to cut their prices enough to keep up with falling market prices.
For more than three decades, the sales volume of existing single-family homes and newly built houses tended to rise and fall by about the same percentage, as can be seen in the accompanying charts. To be sure, sales of new homes did tend to do a little worse during recessions, but the difference was small and short-lived.
The top chart shows sales volumes of both types of homes, compared with the sales pace for each in 1976. To avoid monthly gyrations caused by weather or other temporary factors, the figures use three-month moving averages of seasonally adjusted annual rates.
At the peak of the housing boom in 2005, sales of both existing and new homes were running at twice the 1976 rate. This year, the sales rate for existing homes seems to have stabilized at about one-third higher than the 1976 rate. New-home sales also seem to have stabilized, but at about half the 1976 rate.
(Excerpt) Read more at nytimes.com ...
If it weren’t for bank foreclosures....there wouldn’t be ANY real estate market right now.
In our area, foreclosures are selling for the price that the land or lot alone would have fetched a few years ago, so how could a builder lower their prices to that level?
In my area the same for sale signs are in front of the same homes for over a year now and more are sprouting all the time, none are moving.
Realators in my area are having to get ‘real’ jobs!
Yes indeed thanks for posting!
Not to worry...the cap and trade bill will fix this. Did you hear Boehner reading from the 300 page addition to the bill yesterday afternoon? Included in the wonderful cap and trade that the House passed was all kinds of new requirements that existing homes meet certain green standards (tbd by the Energy Secretary, I presume) before they can be approved for resale. Additionally, appraisers would have to be retrained in order to be able to determine if homes meet these standards, which will cause appraisal fees to rise (usually paid by the seller). So, new home sales will bounce back when it will be impossible to sell your existing home without putting in $75,000 worth of Federally required green improvements. There were no specifics mentioned, but an open door for requiring anything from solar panels, to radiant barriers, insulated windows, increased insulation, more energy efficient HVAC systems. Have you priced that stuff lately? Would you be able to sell your house?
Realtors, you’d better start to lobby the senate to kill this thing, or your days are numbered.
What can I say... I like pretty (or in this case horrific) pictures!
It's truly frightening, the concentration of power occurring in the Executive branch.
- Sec Energy will control all cars/transporation/housing under the auspices of "green".
- Sec HHS will control life/death/health and profits within 20% of the GDP under the nationalized health plan
- Sec Treas will control 70% of the financial markets via TARP hooks added AFTER the TARP was passed
- Dozens of new "czars" in charge that only answer to the President
The Obamassiah is gathering all power to him, and his lackeys in Congress are going right along with it. If cap-and-trade and healthcare reform pass, the Executive will literally directly control 60% of the US economy. Virtual control over everything that goes on in this nation directly controlled by fiat of the Executive branch.
Thanks alot for spookin’ me out with that little summary! It’s going to run through my head like a bad song all day.;)
Our neighbors in San Jose just sold their home for 1.2 million. It was more than what they paid in 2005.
Their home was decorated beautifully, and it sold in a week and closed within a month.
Other homes in our neighborhood have been on the market for months. Those homes need to be updated, and they aren’t selling.
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