And to think we're just getting started.
San Diego, I'm sorry to say, you're screwed.
Condo Prices See Significant Drop
While the news that home prices finally went negative year-on-year last month grabbed plenty of attention this week, a new report shows that the price dip has been even more exaggerated for condos and townhomes.
When compared with June 2005, median prices dropped $20,000 in the county last month for single-family attached homes, a category that includes condos, condo-conversions and townhomes. That’s a 5.2 percent drop over the year.
The prices also decreased by 2.4 percent from May to June and 5.7 percent from the beginning of the year, according to HomeDex, a resource compiled by Dr. Robert Brown, professor of economics at California State University, San Marcos.
As usual, those in the industry are divided over what the numbers mean, with some predicting a calming of the market and others seeing a potential crisis.
Many real estate professionals and analysts view the change as the attached housing market starting to return to normal after the escalating prices of the last few years. Others aren't so optimistic.Realtor Jim Klinge, who has been in the realty business for 22 years, said the current conditions are unlike anything he’s seen before."It’s anything but normal, if you ask me," Klinge said.
Chris Thornberg, an Anderson Forecast analyst at the University of California, Los Angeles, said the housing market is in uncharted territory. Thornberg attributes the "everything’s fine" response from the realty industry to the "bunker mode" mentality that comes in circumstances like these.
"People are loathe to realize losses in homes," Thornberg said. "They don’t want to talk about it, to think about it."Thornberg said that these numbers aren’t evidence of a soft landing.
"The industry has been really blase," he said. "This cooling off of the market is very, very hard and very, very fast -- more than we’ve seen before."
August 12, 2006
San Diego single family home prices plunge $20,000 in July, "cooling off of the market is very, very hard and very, very fast"
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19 comments:
Keith, you need a photo of a SCREW. That one is a bolt, as in all the buyers have BOLTED.
I think that's a bolt, not a screw. Still appropriate because buyers are bolting away from the market
The lessons of Easter Island.
They kept building until every last tree was gone and then they threw down their tools.
you screw in a bolt, right?
and realtors screwed the dolts, right?
WTF, that's a screw not a bolt. Did the photo change?
http://en.wikipedia.org/wiki/Image:Screws.jpg
Round head SCREW, not bolt.
http://en.wikipedia.org/wiki/Image:Bolt_marking_SAE_Grade_2.png
No....that's a bolt.
A screw is self-propelling (with the aid of a screwdriver), ie it has a pointy end with which to dig itself into wood/metal/whatever.
The photo shows a threaded BOLT.
It has a flat end and requires a hole to have been pre-drilled, before it can be screwed in.
See? 8 years of Cabinetmaking finally came in handy on the Interweb ;-)
I wonder if illegal mexican homebuilders know the difference between a bolt and a screw
Wonder if the illegals know which end of the hammer to use to drive in that 'Bolt'?
The problem I have with Chris Thornberg's most recent speeches is his prediction that housing prices will stay flat. What stays flat - stocks, commodities? Why would housing prices stay flat? He is truly a dynamic speaker - I wish I had that skill. I also realize as a state employee he has to be careful in what he says. But "flat" is just insulting.
Lived in san diego since '72 i have never seen such 'land rape' as of recent then the whole time i've been here! If it's green, pave it! If it's open, build on it! Anything, anywhere....develope it. And at a frantic pace! I think they tried (some suceeded) to beat the slump...but some, their timing was off............oops!
Econ 101: If it ain't moving and you've got too many in inventory, you lower the price!
It seems the only group that can't figure that out are: developers, appraisers, realtors, lenders, greedy sellers, banks.....yada yada!
that was agood one!
Thornberg is a smart guy, called the bubble, understands supply and demand.
I too find it odd that he's telling the media that prices will just flatten out. They won't, and they aren't.
It's almost like he's trying to please an unseen master
I interviewed him a bit ago, seemed like a straight shooter. Maybe time for a follow-up. It doesn't make sense, this "prices won't drop" stuff coming from him.
They're gonna plummet.
final point: first you screw, then you bolt.
in dictionary, see picture of realtor doing same. to an FB.
hope that settle it all.
And you didn't mention if she still made money? I'm sure she still made a hefty profit if she has owned it for awhile.
I can't wait for prices to fall and I can own a house on the beach for less than rent! Yah, right, that is going to happen and if it did we'd see bidding wars and the price would just go right back up. 300 million people and not that many prime pieces of land on the beach in California. Who knows, if prices fall 30% and interest rates remain low we all can own prime real estate for the price of rent. Yah right.
Just think, onlygoesup, she may be right. Just when they said over a year ago that the bubble was up in London there was a slight panic and decrease and low and behold this year prices up! If history is any indicator we still have at least one lasat hurrah before either the market falls or hyperinflation kicks in and holding fiat dollars will get you no where. Read the Penniless Billionare to see where we are headed.
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Klinge is thoroughly disreputable. His opionion is self serving because one of his nefarious businesses is to make half-price offers on properties in foreclossure. Anyone may certainly make any purchase offer he or she wishes, but to couple it with "scare tactics", supposed "inside information", and and unalloyed negative opinion as to real estate valuation the self-serving nature of which is disguised, well make up your own mind.
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