Boy, we sure went from panic buying (June - July) to panic selling (NOW!) quick didn't we?
I'm starting to think the only speculators left in the market are those who weren't lucky enough to unload this summer... but the question in on those hundreds of thousands of units currently under construction (Phoenix, Vegas, Miami for starters) - speculators put $5000 or so down to hold 'em, but what happens in 2006 when they walk away from their deposits - and the builders have no buyers?
Lisa Tershak is offering to pay $5,500 in cash to anyone who buys her three-bedroom house in Leesburg, Virginia, near Washington.
She's reduced the investment property's asking price five times since July to $464,900, not far from the $450,000 she paid for it in March. ``There's too much inventory,'' says Tershak, 35. ``Everyone felt the bust coming and decided to dump their properties at the same time.''
Investors who helped fuel the U.S. housing boom by bidding up prices are now so desperate for buyers that some are offering cash bonuses in such markets as Washington. That's a sign the Federal Reserve is succeeding in removing some of what Chairman Alan Greenspan called ``froth'' from the market. Inventories of unsold single-family homes are near a 17-year high as demand from speculators wanes and mortgage rates have risen more than a percentage point from a four-decade low reached in 2003.
November 22, 2005
Posted by blogger at 11/22/2005