US Housing Prices have Record Drop

Purpdust · 10-26-2006, 12:30 PM

Who's fault is this?
globeandmail.com: U.S. new home prices fall 9.7% in September

oldfogey · 10-26-2006, 12:34 PM

Why does economics have to have a fault?

phobiaphobe · 10-26-2006, 1:09 PM

I blame the Paparazzi.

cvc14 · 10-26-2006, 2:17 PM

Sucks bc I am trying to sell me place now and I am having no luck. I need a place with a garage for the bike..

seamus · 10-26-2006, 2:22 PM

It's my fault. I cause housing values to drop within 2000 miles of my residence.

Purpdust · 10-26-2006, 2:26 PM

Quote:

Originally Posted by seamus

It's my fault. I cause housing values to drop within 2000 miles of my residence.

I did not know you lived next to Hammer

Scout · 10-26-2006, 3:05 PM

stegen · 10-26-2006, 3:24 PM

would this also affect old homes also?

onevcs · 10-26-2006, 3:29 PM

Quote:

Originally Posted by seamus

It's my fault. I cause housing values to drop within 2000 miles of my residence.

You should not land the chopper on your neighbor's roof...

jaim · 10-26-2006, 3:38 PM

It's everyone's fault.

steingar · 10-26-2006, 5:29 PM

No fault, just a correction that's been a long time coming. Once the prices start stabilizing it should get easier to move property. And yes, once the new house prices fall the old hpuse prices will do likewise.

Hammer · 10-26-2006, 5:47 PM

Quote:

Originally Posted by Purpdust

I did not know you lived next to Hammer

He is not too far at the moment.

Hmmmmm. I wonder if I give him GPS coordinates......

seamus · 10-26-2006, 6:46 PM

Quote:

Originally Posted by Hammer

Hmmmmm. I wonder if I give him GPS coordinates......

...I can probably talk some friends into hovering over your neighbor's house for a few minutes at midnight every night.

Or I could drop a couple 2.75" rockets near the largest pile o' junk. They're not a point-target weapon so keep your head down...

Hammer · 10-26-2006, 7:26 PM

He is usually by the fire outside so a heat seaker will do. And my head is always down.

luvtolean · 10-26-2006, 7:35 PM

Quote:

Originally Posted by Scout

Talking to people, I don't think the drop has quite kept up with the increase in payments due to rising interest.

But it'll get there...

cvc14 · 10-26-2006, 7:54 PM

Quote:

Originally Posted by seamus

It's my fault. I cause housing values to drop within 2000 miles of my residence.

Well then since it is your fault thanks very much..

Houses were bond to level out at some point with all the growth over the past 5 years or so..

JBODIE · 10-26-2006, 7:59 PM

Quote:

Originally Posted by seamus

...I can probably talk some friends into hovering over your neighbor's house for a few minutes at midnight every night.

Or I could drop a couple 2.75" rockets near the largest pile o' junk. They're not a point-target weapon so keep your head down...

Too late they already do that.

Mojave954 · 10-26-2006, 8:16 PM

Yeah was looking at taking a new job up the road but can't afford to sell my house.

oldfogey · 10-27-2006, 5:19 AM

I should perhaps explain that the "price drop" was mainly a change in composition: volume sales of higher-priced houses dropped significantly (as did the prices of those that sold), so a higher proportion of those sold were lower-priced houses. The average price of houses sold therefore fell more than the price of any particular group of houses. To put it another way, if you fixed the proportions of lower- and higher-priced houses the drop would have been smaller.

The house-builders are clearing inventory and dropping prices to achieve that.

Clear now?

Purpdust · 10-27-2006, 9:19 AM

Yes,

But I feel this is just another sign that the housing market correction has started in the US. A month or so ago it was stated the Defaults on Loans in SoCal was at a record level as well. This tells me that the public is not able to spend as much on housing, because of interest rates and/or income.

If you also look at the changes in Low Skill Immagration, The new super highway that will bypass the western ports and all the other measures that the goverment is putting into place for what ever reasons. I think you will find that the lower middle and low income Americans are in for a world of hurt.

leelover · 10-27-2006, 9:27 AM

I have heard the term "bubble" used to describe the boom in housing prices that has apparently ended. Seems pretty appropo.
When values on any commodity increase beyond the reasonable ability of consumers it has to burst.
stegen is a good example of this, a young family man trying to own a residence. How will he, or any, "young first time buyer just starting out" be able to buy a home if the artificially inflated prices continue?
I have to say I am glad to see "reality" returning to the housing market, even though I have property for sale.

I do think things will level out and go back to a more "normal" rise soon.

leelover · 10-27-2006, 9:31 AM

Quote:

Originally Posted by stegen

would this also affect old homes also?

Yes, all property values are affected. Though, the harder hit will be the more more "homogenized" builder package homes. See Fogey's post.

oldfogey · 10-27-2006, 9:46 AM

Residential housing construction fell at a 17.4 percent annualised rate last quarter, the biggest decline since the first quarter of 1991, after shrinking 11.1 percent annualised in the previous three months. The decline in homebuilding subtracted 1.12 percentage points from third-quarter growth, the most in almost 25 years, 3rd Quarter US GDP figures today show

leelover · 10-27-2006, 10:02 AM

Quote:

Originally Posted by oldfogey

Residential housing construction fell at a 17.4 percent annualised rate last quarter, the biggest decline since the first quarter of 1991, after shrinking 11.1 percent annualised in the previous three months. The decline in homebuilding subtracted 1.12 percentage points from third-quarter growth, the most in almost 25 years, 3rd Quarter US GDP figures today show

My "seat o' the pants", or maybe better, "boots on the jobsite" meter says this sounds about right. Kinda quiet out there compared to 6-9 months ago.
Will the upcoming elections make a diff? Quiet Hurricane season? Anything on the radar?