My only questions are:
1) What took so long, and
2) When does Time finally do its housing crash cover story?
Housing crash was yesterday's USA Today cover story. First of many in a series I would imagine that'll run for 3 to 6 years.
Sellers sing the blues as price drop sets record
Then: San Diego's housing market was so hot that the town house next to Jeff Cruce's was flipped from buyer to seller three times in three years. The owners, who never moved in, didn't even need to put up a "For Sale" sign.
Now: Since August, Cruce and seven of his neighbors have put their town houses on the market (that's nearly 20% of the units in the complex). All have cut their prices, including Cruce, who chopped his price last month by $30,000 to $559,000. Not one has received an offer yet. Each time one owner would lower the asking price, it put pressure on the others to follow, says Cruce, 38, a salesman who's moving to Atlanta.
"It was surprising just how quickly the market seemed to turn," says Mark Zandi, chief economist for Economy.com. "It was like, boom, boom, bust. It was like, 'What happened?' The psychology in the marketplace unraveled very rapidly."
Being a mortgage broker, Diaz knows some investors who used their home equity like debit cards. He says of the quick decline in real estate, "It's coming like a culture shock to many." 'Everyone was doing it'
Vicki di Bernardo agrees. "It taught us a lesson," she says of the downturn in Las Vegas. "It was a little risky, but we got caught up in it. Everyone was doing it. ... (Now) everyone is very, very nervous here about the real estate market."
"The problem is the builder is giving away homes," Rauch says.
October 27, 2006
Posted by blogger at 10/27/2006