And just think, that bogus number is horrific without including the $100,000 in free upgrades, the $100,000 cash back at closing, the hawaii trip, the new car, or the free hookers and cocaine.
OK, I'm not sure if builders have resorted to free hookers and cocaine yet, but you know they've gotta be thinking about it. And again, one day, the MSM might pull their collective head out of their ass and report the overstatement of this Commerce Department number. Or not.
Bottom line: anyone who bought a new home in 2004 or 2005 during the housing craze - your builder is now completely and totally destroying your financial future in a scorched-earth-mother-of-all-firesales. Your comps will be ruined for years to come.
Real estate never goes down they said. This house will make a great investment - you'll make a killing. It's always a good time to buy they told you (before cashing their commission check).
In reality, Suzanne researched it, and you're fu*ked.
New Home Prices Fall by the Largest Amount in More Than 35 Years
WASHINGTON (AP) -- The median price of a new home plunged in September by the largest amount in more than 35 years, even as the pace of sales rebounded for a second month.
The Commerce Department reported that the median price for a new home sold in September was $217,100, a drop of 9.7 percent from September 2005.
It was the lowest median price for a new home since September 2004 and the sharpest year-over-year decline since December 1970. The weakness in new home prices was even sharper than a 2.5 percent fall in the price of existing homes last month, which had been the biggest drop on record.
The declines in prices served to underscore the severity of the correction in the once-booming housing market, which had seen sales of both new and existing homes soar to record levels for five consecutive years, propelled by the lowest mortgage rates in more than four decades.
October 26, 2006
FLASH: HOLY CRAP! New home median price crashes 10% (plus value of unreported incentives) - biggest decline in 35 years
Posted by blogger at 10/26/2006