March 06, 2006

New York Times: Hoping for Best in Home Sales, 2 Sides Sit Tight


Buyers ain't buying, sellers ain't selling, realtors ain't making any money either... How does it end? Sellers will to blink... and the first ones who do at least get out - it'll be the ones who don't, who feel they "deserve" to get what their neighbors got last summer, who'll be left holding the bag

Along much of the East and West Coasts, home buyers and home sellers are engaged in a stare-down.

Many buyers, having heard that the real estate market is a bubble in danger of popping, are refusing to offer the asking price on a house, convinced that it will soon drop. But many sellers are not blinking either, thinking that offers will improve when the weather does and biding their time until then.

As a result, the housing market is now in a deeply confusing state, with average prices still rising even though homes are taking much longer to sell and the number on the market has soared.

Sometime soon — probably in the spring, the peak sales season — one side or the other will have to capitulate, many economists and industry executives predict.

"In my opinion, the jury on housing is still out," said Antonio B. Mon, the chief executive of Technical Olympic USA, a home builder. "The period from now until May will tell the tale."

But many houses in the Northeast, Florida and California are, in fact, selling for less than they would have six months ago. In parts of the Northeast, the drop has been about 5 percent, estimated Robert I. Toll, chief executive of Toll Brothers, the biggest luxury home builder in the country. Other sellers have cut their price and still not found a buyer.

"All we are seeing is a pregnant pause," said Richard A. Smith, chief executive of Cendant's real estate division, which owns Coldwell Banker and Century 21, "a disconnect between sellers and buyers."But many buyers say they have a sense that the long boom has finally come to an end.

6 comments:

Rob Dawg said...

"All we are seeing is a pregnant pause," -Richard A. Smith

Translation: The entire housing industry got f@cked back in October and thus by June will give birth to a mutant hellchild with an unquenchable appetite for comsuming homeowner equity, liquidity and mobility.

Anonymous said...

That's a good one MR. Cote

Anonymous said...

no...warmer weather will not improve sales. Here in southeast Florida it is warm and nothing is moving. For sale signs up all over the place...the snow birds are here...nothing happening. And they keep building and building...way TOO MUCH speculation.

Osman said...

As the speculative markets go pop, does that mean every market implodes? Where's the giant inventory buildup?

Anonymous said...

my sister recently sold her home for a profit and she's renting until the housing prices come down. how long can the flippers afford to pay mortgage on the 5 houses they own? we'll see who can hold out longer

Anonymous said...

Hey, you have a great blog here! I'm definitely going to bookmark you!
I have a bad credit merchant account site.
Come and check it out if you get time :-)
Greetings.