Yup, just a mild correction. Just a nice and easy soft landing.
Memo to anyone stupid or unfortunate enough to buy a condo in Boston last year (after reading the corrupt David Lereah's book): You're now bankrupt.
Just how weak is the Boston real estate market? We got an idea yesterday. And if you’re looking to sell your home in the near future, the news isn’t good.
Brand-new luxury condos downtown saw hundreds of thousands of dollars wiped off their value in the Hub’s first public real estate auction in a decade. The 31 condos up for sale in the Folio building on Broad Street sold on average for 30 percent below their asking prices. Some barely fetched their minimums. Even the building’s marketing boss couldn’t hide what happened.
“I think the buyers got a better value than anybody expected,” Paul Gollinger said after the two-hour auction. “But we’re satisfied, very satisfied... We hadn’t had a sale in the last four months.”
A $1,760,000 penthouse plunged $600,000 to just $1,140,000. A $1,600,000 three-bedroom apartment with a terrace crashed by half a million dollars, selling for less than $1.1 million.
“The asking prices were realistic eight months ago,” he said. “But they’re unrealistic now.”
The big losers yesterday? The people who paid full price for the other 65 homes in the building during the last few years. Collinger said the first went up for pre-construction sale four years ago. And they all sold for the asking price.
October 08, 2006
Devastating housing crash underway in Boston - condos fetch hundreds of thousands of dollars below asking price
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27 comments:
Na the biggest losers are my neighbors, who sold their house and have no place to go...3 bedroom houses are still in the $400,000 range.
With only $80,000 to put down hefty mortgage, for someone who just got laid off.
I can't believe what I'm reading. Amazing.
Slowly reality is showing its ugly head. But wait till mid 2007 then you see whole body to know what ugly it is.
:With only $80,000 to put down hefty mortgage, for someone who just got laid off.
Wait a minute, isn't that $80K the rainy day fund for periods of joblessness?
I mean at a steady burn rate of $3K per month (rent, health insurance, etc), that should last a little over 2 years which should suffice for most couples.
$1.1 million for a 3 bdrm condo - what a bargain.
$1.1 million turns into $350,000 real quick
never try to catch a falling knife
I mean at a steady burn rate of $3K per month (rent, health insurance, etc), that should last a little over 2 years which should suffice for most couples.
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Sorry forgot to mention Her significant other is in the construction field, and he was informed the other day that he is being let go 2 moths early due to no building activity.. IE: laid off.
I really do feel for them tho.good people, and you try to talk about , well things, and they now it all.
Well All I know is ,this is the North East and the nights are getting cold. And they have 28 days to find shelter.
Tough shit, welcome to REALITY !
No such thing as a free lunch, and the SMART money has ALREADY left real estate... Nothing left but dumb money, and bag holders.
This has been manifesting over a year now, and if anyone couldnt see the writing on the wall, you'll lose... Nuff said.
BTW, there will always be nice people who got thier ass handed to them, just make sure it isnt you.
Have a nice day.
You caused this to happen you bubble mongers. Your bubble talk scared people into believing in the bubble. When the fear passes we will enter back into +20%/year. Unfortunately those who must sell now are getting raped by the bubble-heads. Congratulations, you have caused tremendous financial harm to the USA, just like Al-Qaeda.
Keith,
The people at the auction think they got a good deal. Ha.
Wait until the people that bought in the last 3 years give their condos back to the bank. Then the bank sells them for 30% below what was paid at auction!
its all manipulations, california proposition 13, and the capital appreciation, tax laws, of 1995, making 2 year holds of primary residences capital gains tax free, those places have been bought and sold 5 times in the ten years of what may be a secular bull market in real estate, and perhaps with the average secukar bear/bull lasting an average17 years, ala wall streea, the downside without/or perhaps with other ,amuipulation, could be hell, and then markets can remain irrational, longer than one can stay solvent, and throw in rising and rising property tax revenues,for the local politicans rake offs, and its building affordable housings, or more and more taxation of homes,/houses ,tomatoes at 2.99 a pound, living within ones means may not include borrowing, on 100g or 1000k houses, realy economic disagreement,
edit free e mail post!!!
cheap penny pinching miser, using other peoples e mail, says he can afford the fair market price, or 10% of what it rents for , does he haVE CASH??
Come on guys...average people don't buy million plus luxury condos. The market for those is very small to begin with. I would call that auction a success!
If you want to see what will happen to the US housing market, click here.
You caused this to happen you bubble mongers. Your bubble talk scared people into believing in the bubble. When the fear passes we will enter back into +20%/year. Unfortunately those who must sell now are getting raped by the bubble-heads. Congratulations, you have caused tremendous financial harm to the USA, just like Al-Qaeda.
That was pretty funny Andrew. A little too over the top to have me actually believe you think that. Work on it. Common sense man. A couple little blogs cannot derail a mania, only reality (and MATH) can.
Buyers waiting and getting these same units at forclosure will get the better deal!
IN our small beach town, there are about 50 new or refurbished condos on the market, about 20 new luxury homes supposed to be built adn sellers still asking sky high prices (600k+)for their 2 bedroom, 1 bath ranches. I have completely stopped looking to buy and will not waste anymore time visiting these homes on the market. This market is a comlete joke and the realtors, sellers, etc. need to stop jerking around and shoot straight if they want to make a sale and have any income any time soon. It has become a disgrace and absolutely no one is getting my money unless it is a fair deal.
jr
RBC Homeowner's Survey
in Markets | Psychology/Sentiment | Real Estate
Via Barron's (print ed) comes this fascinating survey by RBC Capital. They asked over 1,000 U.S. Homeowners numerous questions. Here are some of the more interesting answers:
>
75.6%: see their Home's value climbing over the next few years
46%: expect a gain of 5% or more annually
30%: foresee a rise of 10% to 15% a year
70%: said their home's value has risen 10% or more in the past 3 years
6% think their home's value will sink in the next few years
7.8%: worry that their mortgage might exceed the value of their home
>
Any similarities between home owners and equity investors circa 2000 is strictly coincidental...
North Korea Conducts Nuke Test
SEOUL, South Korea (AP) - South Korean government officials said North Korea performed its first-ever nuclear weapons test Monday, the South's Yonhap news agency reported.
South Korean officials could not immediately confirm the report.
South Korean President Roh Moo-hyun convened an urgent meeting of security advisers over the issue, Yonhap reported.
The North said last week it would conduct a nuclear test as part of its deterrent against a possible U.S. invasion.
http://tinyurl.com/rn9s8
Turmoil for the markets tommorow for sure.
1+ million for a 3 bedroom condo. this aint no crash folks
keith said...
$1.1 million turns into $350,000 real quick
never try to catch a falling knife
The contrarian play - buying gold, silver and oil today
Bought $20k each of Gold, Silver and COP today
Everyone's selling, I'm buying. Everyone's buying, I'm selling. They all may go down more from today, but get ready for the bounce... Flame away haters, but at least I take a stand and put my money where my mouth is.
jr-
that's the attitude. the market is a complete joke.
you're right. they are stealing your money.
Those "million dollar" Boston condos will be 350K before this is over.
watch out for falling knives.
Once we nuke North Korea there will be lots of Asian money flooding into the USA.
There will be massive inflation so the $1 million condo will equal the 100,000 condo of 5 years ago.
If you can hold on to the payments and cash flow then you will be fine and your house will have been a good hedge against the massive inflation with is ongoing but hidden from you losers by your governement.
"Properties near the bottom of the scale fell by less. Bidding was brisk for two bedroom condos. There were plenty of buyers willing to spend up to $700,000 for a home, paying between $520 and $570 a square foot. "
not really that bearish.
keith:
why don't you e-mail this post to david lereah and kendra, including retsinas and ask them if this is a "correction" to them, by definition.
i agree this isn't a crash yet. $600k drop in price? big freakin deal.
"not really that bearish. "
Another scumbag realtor posting as an anon.
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