Realtors: Home sales now a 'buyer's market

[sabbat hunter]

does this signal the end of the housing boom? may and june should be big housing sale months. will be interesting to see what july brings.

http://money.cnn.com/2006/07/25/news/economy/homesales/index.htm?cnn=yes


Sales fell for third straight month in June; nearly flat prices make double-digit gains seem like a distant memory.

It's official - even the nation's leading group of real estate agents now says it's a buyers' market in housing, as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers.

The news came in the National Association of Realtors' report for June, which showed that home sales fell to the slowest pace since January last month while price gains were the smallest in over a decade.

The industry group said sales of existing homes fell to an annual rate of 6.62 million in June, compared with a 6.71 million pace in May. Economists surveyed by Briefing.com had forecast sales would slow to a 6.60 million rate.

June was the third straight month of slower sales, and the lowest pace of sales since the seasonally adjusted number for January. The pace of sales is now 9 percent year-ago levels, and was down in each of the four regions of the country.

The median home price, which reflects the point at which half the homes sold cost more and half cost less, edged up to $231,000 from $229,000 in May.

But that marked only a 0.9 percent increase from a year earlier, which is the smallest year-over-year gain in home prices since May 1995. As recently as October, prices had jumped a record 16.8 percent from a year earlier due to tight supplies and bidding wars among buyers.

[ayeshahaqqiqa]

1. From the bug perspective....

I work for a termite company. Here in Arkansas, most lenders require a termite treatment/transfer of existing contract before they will lend money on a house. June, July, and August are usually our busiest months. Business is WAY down-June, for example, was like what we usually see in the early spring or late fall. And many, many deals have fallen through. Houses are taking longer to sell, and there are a lot more foreclosures than I've seen since I started working here 5 years ago.

[On the Road]

2. Sure, Sure....

and to prospective sellers, the message is "Prices have skyrocketed! It's a seller's market!!!1!"

[Sammy Pepys]

3. My recent experience...

We close on a place next month. We got our bidding price and some other goodies thrown in...in fact the whole thing was accepted less than 12 hours later.

There is certainly a lot more inventory out there, and there isn't a whole lot of pressure to move quickly. That's a huge change from a year or two ago.

Prices around our area (DC Metro) don't see to be declining too terrbily much...there aren't any tremendous bargains out there...but this is an expensive area to live in regardless of the genral economic/housing situation. My guess prices are flattening out...they won't appreciate in the double digits like befre, but they won't drop either.

We have friends on the west coast that have had their home on the market for almost three months. They haven't had lookers for three weeks.

I'd say it's a buyers market.

[Quakerfriend]

5. Yes, it is absolutely a buyers market in the Northeast.

I'm in the suburbs just outside of Philadelphia. My family has been trying to sell my mother's house since February. It is in perfect condition and a real good deal if you want to feel like you are out in the coutry, yet only 10-15 minutes from the city.

We have had just two offers. One for 175K below asking price and the other for 120K below asking. And, it is not overpriced by any means. It is a big property and a very unusual house. But, no one is feeling sheepish about offering WAY below asking. We also just sold a rental property she owned in the same area. We sold for 35K below our asking price. But, had offers for 85K below. It seems that buyers know that we sellers want to get out quickly! Houses are still being listed for outrageously high prices but, buyers are settling for less. Our next door neighbor just sold for 120K less than what the house was originally listed for. And, she had to weight almost a year.

I, myself, have been looking to buy. And, believe me there is NO rush. Things are staying on the market.

[madmichelle]

10. northeast pa

I can't believe your mother's home did not sell. My cousin lives in the philly suburbs and said the home values have gone way up. We live near the poconos. It can't be a buyers market in all of the northeast. Our area has seen a large influx of city folks who are willing to live here and commute to NY , NJ. Because they can afford a home here for well below what they are getting for their homes in the city...they pay asking price if not more. A family member is looking to buy, and found a fixer upper for sale. A bidding war went on over this forclosure that needs to be gutted, and the outside totally renovated as well, only a little land, and it sold for the price of a home that a few years ago you could just move into. It has turned into a frenzy...and due to a whole other problem...local people are now too paying just about anything to seek out safer neighborhoods. If you go by the rule that most people can afford a home 3 x their annual salary, then look at the median salary here, you really scratch your head and wonder how on earth anyone is doing it. Well, sadly, many people can no longer afford to pay the price to buy a home here. We skated in on a home just before things got really nuts, after one yr. in this new home, and what it's worth just a year later...we could not buy it. Well, as the gas prices have took it's toll on our family, being more expensive than groceries for the month, I worry we may land up having to sell if the gas prices continue to go up. Now we hear it's a buyer's market, but I just don't see that meaning anything here. As long as we have people coming in, the prices still look great to them.

With your property...Have you tried a different realtor? selling yourself? listing it online if you try to sell yourself? maybe it's priced too low and people think it needs work? I just can't believe it didn't sell since it's priced right. Hey, if you are looking to buy...would you consider it? Good luck to you anyway.

[acmavm]

4. Foreclosures are skyrocketing, especially in Denver. I think

that people who want to buy up should just wait a little longer. Prices are really going to come down.

[StClone]

6. New construction is still going on. Why?

Because there is plenty of money controlled by the upper income to build rather than buy existing homes. I still see quite a bit of new construction here.

[lutefisk]

7. It takes a while for sellers to accept that a market has changed

First, the "days on market" number goes up, then, after many months (or longer) prices start to adjust. I don't think there will be many "bargains" this summer. I heard from a local agent that the days on market in his area is up to 190+ days. Sellers are still sticking to their prices, however.

[madmichelle]

11. they would have to stick with their prices

they would have to stick with their prices if they bought the home only a short while ago and need to sell for whatever reason, they need to pay off their mortgage. We kept our heads while looking and refused to pay over what a home was really worth just to get it. Sadly, many people we know paid way above asking price just because they wanted it, and wanted it now. Don't people think about the what ifs? what if we have to sell it? what if the market changes and we have to sell it? I also wonder why anyone would overpay for anything?

[flamin lib]

8. N Texas here. Been a buyer's market for last two years and

becoming more so. Anything under $120k moves pretty well (always a pent up demand for first time buyers) and anything over $ million is selling. Between you can't even get a showing.

Case in point:
1997, 3500 sq ft, 4/3.5/3 on .22 acre. Two masters, two living, two fire places, gourmet kitchen, spa and lots more. $249k. Four showings in six weeks.

Texas set a record with a 61% increase in foreclosures December 05 over 04.

Don't worry though, I have it on good authority that the economy is strong and getting stronger.

[Warpy]

9. The money guy from Florida was here today

and patted me on the back for being wise enough to drop my pop's place 10% under market and then negotiate another 5% for a quick sale. Three months later, houses dropped 30% at LISTING were not selling at all. I sold that place in a WEEK.

Yes, this is definitely a buyer's market. If you didn't unload your house 6 months ago to downsize, you're pretty much stuck now.

There are a few markets that are still OK, mostly in flyover country where the bubble didn't have much of a chance to inflate.