This market can be soooooo ugly. I can't even tell you what 1990 looked like - and I have deja vu all over again. RTC anyone?
But hey, it's different this time, say the Denver-Boulder realtors.
Foreclosure shock - Denver market sees 31.5% increase (in foreclosures) from first quarter of 2005
Rising interest rates, a glut of unsold homes on the market and falling home prices in some submarkets drove up Denver-area real estate foreclosures by more than 30 percent in the first quarter of this year compared with the first three months of 2005. The 31.5 percent jump is the largest year-over-year percentage increase for a quarter in almost two years.
"That is disturbing," said economist Patty Silverstein of the soaring number of foreclosures.
The number of unsold homes on the market has been growing by an average of 2.5 percent a week. The increasing supply is putting downward pressure on sale prices, especially for the lower-priced homes most likely to go into foreclosure.
That's a vicious cycle because it forces more sellers to lower their prices, driving even more houses into foreclosure, Healey said.
"Primarily, I see a huge glut of homes priced under $300,000," Healey said. "Under $200,000, it is just a blood bath, a path of devastation. It is just ugly."
April 06, 2006
Same old same old in Denver: Soaring listings, soaring foreclosures and "a blood bath - a path of devastation"
Subscribe to:
Post Comments (Atom)
13 comments:
When I call Osman "Oz" I am referring metaphorically to the Wizard of Oz. At first I meant to suggest that Osman is the Wicked Witch of the West and Keith is the Good Witch of the North, but after reading some more posts I decided Osman is the Scarecrow (no brain) and Keith is Dorothy (no house). But after reading some more posts, I decided Osman is the Man Behind the Curtain and Keith is the leader of the Flying Monkeys.
Wednesday, April 05, 2006
nice hype keith
Even though a number of blogs have already posted this article and analyzed it with much more cleverness than I ever could, I've decided to post it because I turn into a vindictive and angry child when I'm drinking single malt scotch whiskey. TAKE THAT OZMAN, Booyah !
Alcoholic Keith
u think that is keith? naaa....it is someone hyping the Movie "Wizard of Oz".
Keith, who are the realtors posting about Denver?
I've been posting about Boulder, including charts with Boulder's inventory and Boulder's Days to Offer.
Like I tell clients. Understand your local market.
p.s. Why is that whenever I point out yet another way you sensationalize, you don't respond but immediately deflect by throwing up another misleading post?
Also, for an anonymous expatriot living in an undisclosed location, you seem to throw a lot of stones.
Who are you, anyway? Why the anonymous shield? Or should we try to guess...
Orders down at Brookfield, William Lyon
By John Spence, MarketWatch
Last Update: 10:16 AM ET Apr 6, 2006
BOSTON (MarketWatch) -- A pair of home builders said new orders fell in the first quarter from the year-ago period, raising additional fears that activity is slowing in the nation's housing market.
After Wednesday's closing bell, Brookfield Homes Corp. (BHS : brookfield homes corp com
News , chart, profile, more
Last: 49.40-2.72-5.22%
10:12am 04/06/2006
BHS49.40, -2.72, -5.2%) reported first-quarter net new orders totaled 227, down 56% from 517 during the same period last year.
The decline was primarily seen in the San Diego and Riverside, Calif., and the Washington, D.C., markets, which tallied 251 fewer orders compared to last year. The Fairfax, Va.-based company cited a "slower and more competitive market environment."
In January, Brookfield said it expected to close 3,125 home and bulk-lot closings in 2006. With market conditions slowing in some areas, "it will be mid-summer 2006 when a better assessment of the 2006 home closings will be made," the company said.
Shares of Brookfield slid more than 5% Thursday morning to $49.20.
Also late Wednesday, William Lyon Homes Inc. (WLS : lyon william homes com
News , chart, profile, more
Last: 96.60+0.30+0.31%
10:11am 04/06/2006
WLS96.60, +0.30, +0.3%) said preliminary results showed 647 new home orders in the first quarter, down 26% from 873 in the same period last year.
In late March, the Newport Beach, Calif.-based company said it created a committee of directors to mull an offer by Chief Executive William Lyon to buy all outstanding shares he doesn't already own. See earlier story.
William Lyon's stock was up 20 cents to $96.50 in early action.
Credit upgrades for D.R. Horton, Pulte
Meanwhile, Standard & Poor's raised D.R. Horton Inc.'s credit rating to an investment grade BBB- from BB+.
Late Wednesday, S&P also raised the ratings on the Arlington, Texas-based company's senior notes to BBB- from BB+ and on its senior subordinated debt to BB+ from BB-. The outlook was revised from positive to stable.
"The upgrades acknowledge Horton's maintenance of a moderate and comparatively transparent financial profile, a broad geographic and product platform that provides good stability to operating earnings, and a demonstrated commitment to an internal growth strategy," S&P said in a statement.
Shares of D.R. Horton (DHI : D.R. Horton, Inc.
News , chart, profile, more
Last: 34.84-0.34-0.97%
10:12am 04/06/2006
DHI34.84, -0.34, -1.0%) slid 31 cents to $34.87 in morning dealings.
Additionally, S&P on Wednesday raised its credit rating on Pulte Homes Inc.'s senior notes to BBB from BBB- while revising the credit outlook to stable from positive.
"The upgrade acknowledges Pulte's leading market position in the consolidating homebuilding industry, a lowly leveraged balance sheet, and ample liquidity," S&P noted.
Pulte (PHM : Pulte Corporation
News , chart, profile, more
Last: 40.14-0.56-1.38%
10:12am 04/06/2006
PHM40.14, -0.56, -1.4%) traded hands down 1.6% to $40.06 on Thursday morning.
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B80A60623%2DC619%2D438B%2D967C%2D803F07DBA977%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo&print=true&dist=printTop
Oz 1, Keith 0. Keith you are all hype my man. He has you pegged perfectly.
I'm seeing drops in the asking prices for bare lots (~35 acres) of land in Colorado as well.
The drops I'm seeing are in the 5-10% range, but the prices are in the $40-$80K range so it's not like a homeowner who needs to sell because payments are killing him.
Flippers probably have a bunch of these properties though, so before too long the "just sell it!" attitude will prevail.
But I'm just gonna let 'em sweat until Memorial Day at least.
I don't thin the worst increases in 2 years means much. Its a start but not really that significant when the base number is probably still hisotrically low.
http://www.AmericanInventorSpot.com
AmericanInventorSpot.com
The truth is there is plenty of housing for all. At this time there is too much greed from investors trying to make a buck. once people stop hoarding housing as some "get rich really quick" plan prices will again tie directly in with inflation (or less than I, who knows?)
Just 10 years ago there was talk of a coming housing glut. With 25% of the population expected to die in the next 30 years I'd say there will be a long term housing glut.
Does anyone know what is happening in other parts of Colorado such as Colorado Springs and other southern Colorado areas?
I am in Colorado Springs where the median price is about $200,000. I see a lot of signs for new homes on the market, but I haven't seen the prices drop yet according to CO Springs statistics that I have looked at. However an article in a real estate advertisement I found in the local CO Springs Gazette said not to expect high appreciation rates this year & that it would take longer to sell homes.
I want to buy around the end of the year, but I don't want to get in at the peak.
That will teach those red state to vote for Republicans!
While you're thinking about what's happening in Denver, here's the latest for Boulder based on 1Q's numbers.
Here's the sales analysis and if you're a buyer/seller in Boulder, a breakdown of inventory vs sales by price point.
Post a Comment