Spin this one NAR. Spin this one Bob Toll. Spin this one "White House".
Soft landing? Tell that to folks who bought last fall. They're heading quickly to Chapter 11.. and HUD. Not only can't they afford the payments (as their 1-year interest only no down no doc readjusts) but they just lost at least $28k and more likely $100k+
We tried to warn 'em folks. We tried to warn 'em.
Sales activity also slowed in January by nearly 17 percent as inventories rose and buyers sat on the sidelines wondering about the market's direction. Total sales amounted to 2,763.
The big drop in the new-home category pulled down the overall county median price to $490,000. That was $26,000 lower than December and $28,000 below the all-time high in November.
Searching for an analogy from the Winter Olympics, Karevoll said the figures portend no imminent shifts. “We're not seeing any Olympic dropoff in prices or sales,” he said. “It's all tried-and-true middle ground, nothing stellar on either side of it.”
But prices in the new-home segment looked like one of those Olympic snowboarders who wiped out in the halfpipe.
The January median for new housing came in at $435,000, a record $104,500 less than in December and $22,000 less than in January 2005.
The month-over-month decline represented a near-record 19.5 percent drop, the biggest since July 1997's 24 percent change.
February 15, 2006
FLASH: New-home prices took the sharpest month-to-month dive ever recorded for San Diego in January
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6 comments:
You must be the master at Google Image Search. That house beats my icon.
Speaking of Olympics, I wonder if HH will blame too many people watching Olympics instead of buying houses. Before it was holidays, then it was Super Bowl. Now it's got to be the Olympics keeping the buyers preoccupied!
True, the huge month-over-month drop is disconcerting. But it needs to be put into perspective. A large percentage of the month's sales were condos because of all the conversion activity.
No doubt the housing balloon is deflating; but the year-over-year comparison might be a bit more appropriate.
DING DING DING. We have a winner. San Diego is the first confirmed area to suffer year-over-year declines in prices.
For my dissertation I think I'll use this as a preclude to the busts all over the country.
Keith,
I think this is the house my neighbor bought for $850K in San Jose. LOL
well, they practically had fire-sales in December in the few SD north county new home developments I track. New homes over 3500 sqft were going for $850,000. Just 6 months ago the same new home development had 2400 sqft homes going for that much. And right now, resale homes in the 3500 sqft price range in the same community are still going for $1.2 million.
Why don't people just pay to move these depreciating San Diego houses up the road to Orange County, where they are still appreciating 15% per year? Wouldn't that be worth the expense?
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