Ah, it's tough to watch after the music stops... And it's sad that Catherine Reagor of the Arizona Republic is incapable of writing an article as good as this one from the Boston Globe. Note to Catherine - move away from the safety of your rolodex full of realtors and builders and talk to real people. That's where the real story is.
Also, on the subject of prices - we're not seeing the rapid drop of the average median home price right now (although definitely declining) because sellers haven't been able to sell at their "deserved" prices - and the new "reality" prices will be on sales that haven't happened yet.. Just hold on though..
A soft real estate market is leaving some buyers with one house too many
The decline in real estate sales, coupled with a surge in the number of available properties, is forcing some sellers into a bind. Already smitten with a new home, they must make tough decisions. Do they slash their asking price in order to unload their property quickly? Do they let their dream home slip through their fingers while they wait for the right buyer? Or, like Pelligrini, do they juggle two mortgages -- indefinitely?
``The market just came to a screeching halt," said Tibbetts, who has been a realtor for 12 years. ``I've gone without a pay check for six months now. It's prompted my husband to start calling what I do `volunteering.' "
The drop in sales is bad news for many of her clients, including Chris and Heidi Schrock, who, like Pelligrini, own two properties: A three-bedroom ranch with vaulted ceilings in Hamilton and a cozy four-room Cape Cod-style home in neighboring Wenham. The Schrocks' Hamilton home has been on the market since last July.
``We've had a string of open houses since February, and multiple private showings," said Heidi. ``It's tiring. People will say they love the house, but then they'll tell me they have 10 or 12 other listings to go to. There's just too much inventory out there right now."
In hopes of attracting the right buyer in an increasingly competitive market, the Schrocks have lowered their asking price by more than $70,000 over the past year, to $422,500. To date, they've had only one offer, of $476,000. But that was last fall, before the market cooled, when the Schrocks thought they could do better.
``The offer came with a lot of contingencies, and at the time our home had only been on the market a few months, so it was a no-go," said Chris, 35, a general manager at Electrolux.
Randy Greenstein isn't convinced. He and his wife bought a home in Lynnfield in December, a month after listing their three-bedroom contemporary in Peabody for $629,000.
To make the deal on the Lynnfield house work, the Greensteins took out a bridge loan to cover the down payment, confident that they would be able to pay off that debt once they sold their Peabody home.
At first, it seemed their wager would pay off. After lowering the asking price to $599,000 in early February, they received and accepted an offer for $560,000. But the deal fell apart in March when the buyer had trouble securing financing. Over the next few months, the couple fielded four more offers, each one lower than the last. The most recent bid came two weeks ago. It was for $425,000.
``It was insulting," said Greenstein, who rejected the offer. ``I mean, look, I'm not going to give the house away. I'm not desperate."
July 12, 2006
"The market just came to a screeching halt"
Posted by blogger at 7/12/2006
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20 comments:
Poor guy, insulted by buyers' offers.
It's a good thing he hasn't heard what those buyers say once he rejects their insulting offers!
What's "insulting" is offering so little for so much. He'll probably sell in 2 years for $250,000, LOL.
They bought a new house at bubble prices and can't sell their old one at bubble prices. I feel so solly. Will they lose both houses? Wouldn't that be sad?
What about the dude in nyc who blew up his "9,000,000" townhouse
one way to make sure she gets nothing that for sure.
lowball in San Diego. . .
I took Keith's bait over the weekend and went to a Mega openhouse at Treo (30 condos in one building on MLS - not to mention all the "for sale by owner"). . .One place was listed for $560K, and I mentioned that my budget was around $450K. . .the realtor didn't blink, and said, "we may be able to work something out.". . .hmmmm. . .I left in a hurry, as even at 450K the place has small rooms and no view. . .in a sane world it would sell for about $250 on a good day!!
Let them eat cake.
Same story in Phoenix....I've got a coule of friends that signed up for new builds in December and now have had thier existing homes listed for over 60 days. A little traffic but no offers. They both have 3BR, 2Bth 1,400 ft starter homes listed at $340K. I've told them to lower the price now and they scoff!! Their "expert" realtors show them comps that validate their asking price....Good luck with that. I predict that they'll both end up walking away from their $20K non-rendable deposits because they have to get the inflated price to make the new deal work. Even though they're both good friends, I refuse to feel sorry for people who make irrational decisions (especially when there's plenty of people warning them in advance)
this article is like 3 weeks old. what is this, a history blog?
Same boat here in Monterey Ca. I put my little house for sale since march recieved some nibbles finally looks like I'm out but on paper the prices went down almost $120k+!! I just want to downsize so I'm taking this offer, I even out if all things are considered but I get almost 1/2 a mil off my back. Sometimes simple beans and rice in peace are more delicious than steak while full of worries.
HOLDING IT PULLING WITH TWO HANDS
I got 10K lower than my asking price in Phoenix, but was so happy to get rid of it. But to no suprise they financed 100% of the purchase price.
Goodbye you roasting hot disgusting crap hole of a city.
"Goodbye you roasting hot disgusting crap hole of a city."
Right on about PHX....can't wait till I get out this stinking non-descript shithole they call a metro area. 10 more months to go...this is LOOSERVILLE, USA.
Phoenix,AZ:
"There is no there, THERE."
I coulda been a contender..., I coulda been somebody..., but all I got was a one-way ticket to Phoenix and some cheap fake overpriced stucco cookie-cutter shitbox.
PALOOKAVILLE, USA. Home of little people with big mortgages.
He's probably some lawyer in Boston making 300k a year. I have no sympathy. he can swing it... and if he has to eat 200k, so what, he maks 25k/ month.
...accepted an offer for $560,000. But the deal fell apart in March when the buyer had trouble securing financing.
Someone had trouble securing mortgage financing? Did they have a FICO score in the single digit?
"Same story in Phoenix....I've got a coule of friends that signed up for new builds in December and now have had thier existing homes listed for over 60 days. A little traffic but no offers. They both have 3BR, 2Bth 1,400 ft starter homes listed at $340K. I've told them to lower the price now and they scoff!! Their "expert" realtors show them comps that validate their asking price....Good luck with that. I predict that they'll both end up walking away from their $20K non-rendable deposits because they have to get the inflated price to make the new deal work. Even though they're both good friends, I refuse to feel sorry for people who make irrational decisions (especially when there's plenty of people warning them in advance)"
This is SO stupid. You can get 2400 square foot 4/3s now for $250k in Phoenix. These people ARE IDIOTS ....
Oh, well.
What part of phx for 250? Hellhole Buckeye?
The number of homes listed for sale in Phoenix yesterday was 50,167. Today at 2PM MST the number had risen to 50,713. I checked again at 7:45 and the number had reached 51,130. At this rate there will be 100,000 homes on the market by the beginning of August.
I hate to think of how Phoenix's market is going to explode when this sinks in and hits critical mass. A lot of peoples lives are going to be ruined and my neice could be one of them since her husband's job is with a company that has been pouring all those sidewalks in one after another planned community for the last 10 years. Their house was a modest $95,000 in 1996 and is now worth...err...appraised at nearly $300K and with the help of this reckless monetary policy and creative financing they have taken all that equity out in multiple refinancings. How are families like this going to survive in the end? Is it all their fault when they were trying to survive on the same income that went much further before oil went through the roof and has affected REAL PRICES and hundreds of everyday items tremendously? All those inflation numbers Americans are spoon fed along with the Federal Reserve farce of supposedly stabilizing the economy are laughable. Then there will be another bail out by the government of the banks and those of us who have lived responsibly and gone without will pay the price one way or another. It is a vicious circle.
Disgusted in South Dakota but thankful my roof is not going to disappear.
As I read this story of the guy in trouble it kind of reminds me of a recent sad story.
It about a guy name Thomas Frazza who got in financial trouble and depended on the sell of his house to get him out.
He ends up killing himself and his sons.
http://www.bergen.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXkzJmZnYmVsN2Y3dnFlZUVFeXk2OTYwMjQ0JnlyaXJ5N2Y3MTdmN3ZxZWVFRXl5Mw==
Actually a lot of places in Phoenix. New builds. Builders are selling off properties much reduced from the highs of last year. Like 30% less.
Hard to believe, but fully loaded houses, as well.
Phoenix is a place of death. I love looking at your lovely 114 degree temperature days. It makes me wonder why anyone would actually want to live there. At least to make you feel better just remember the investors are paying a mortgage and a hefty electric bill on astucco piece of shit that nobody wants to buy. HA HA HA HA HA
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