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Median New Home Price Drops To Lowest Since Start Of Depression
The October median new home price of $194,000 was the lowest recorded by the Census Bureau since the start of the Depression in December 2007.
Here's a thought on how to boost this metric: throw in a free streaming rental subscription, and a half off iPad. Little else we can add on this.
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That's a pretty stunning drop there.
Is Clown Calling This Bottom, Too?
Cramer the Clown has a double butt housing bottom.
Imagine that...
Cramer has touched more bottoms than a drunk in a titty bar.
Even more bottoms than a meth-ed out sweaty bald guy in a titty bar?
Oh wait that is Clown...
Or a TSA agent on the day before Thanksgiving.
Ya know, if they'd get some hot pole dancers to do the patdowns on the males, this whole thing wouldn't even be an issue...probably even make some decent tips for a "full" patdown.
If Cramer says it's a bottom, I'M BUYING!! I think I'll get one of those 4% ARM's too, you know, low rate and interest-only and all!!
Did someone say interest rates......
I bought my TH is 2005 for 200K. A nice suburban area with one of the best school districts in the country. For the past year I've seen similar units in my sub.Div selling for around 160K - 170K. Yesterday I looked at the MLS and they are now asking 140K - 150K and one has the price lowered to 99K and that's not a short sale. I am stunned.
I guess Bikini Bottom isn't all it's cracked up to be.
Think how people feel who paid off their whole 30-year mortgage, paid their ever-inflating property taxes on ever-inflating "fair market value" and still are paying the inflated and inflating fair market value property taxes on their ever-deflating-value houses. You can walk away without as much damage and others will "pay", but not the ones whose mortgages are paid off. There's always someone worse off than we are.
http://manifestdeconstruction.blogspot.com/2010/11/new-home-sales-alternative-view.html
I like to look at both total sales and price. Quite a bit uglier through this lens.
Still another 50% down to go.
Yup. No one believes me when I tell them that.
It would be more stunning if their data wasn't garbage. But it is, so take it with a grain of salt. I'll have real numbers for you in a few weeks.
Quick Harry, I think I see a bottom!
yeap...
after all land is like gold they cannot make anymore of it...
With all of this great news, we need Harry here now, telling us good things in our ears.
So like last time...stocks won't drop until September 2011?
LMAO...I am beggining to think less people in the market (volume) means a never ending ramp in stocks until next summer...
slob,
That is the "ONLY" thing they can do.
If they fail to keep this economy on its feet the fraud will be exposed and then the pitchforks and torches come out, So what do they have to do to not let this happen ?
Pile on the fraud even thicker and see if they can poo-poo it away.
Today is just a ramp job for next weeks continued selloff.
afterall its not their money anyway so what do they have to lose. ?
Remember the French Revolution ?
Today is just a ramp job for next weeks continued selloff.
+++ Well said Threeggg.
ORI
dear 3-g:
"the fraud"
There's only one? Please explain.
Hey! FInally someonce called it for what it is!
The D word. Congratulations.
Now we can move to calling it what it really is, the Greatest Depression.
And the scary thing is, still a long way to fall and those MBS/CDS mark to fantasy portfolios? *shudder*
ORI
http://aadivaahan.wordpress.com
Ditto. I'll have to agree with Pretcher on this particular prediction. That by 2012, this Depression will be recognized as such.
OH NOEZ!!! The jobs are all back...trying to figure out how and where. Are they counting unemployed americans or anyone they feel like it now?
Obummer-nomics at Work:
CnbS is saying they're all buying Tiffany, coach and fords.
In the meantime the burrito safe haven of chipole presses year highs. If fast food was so hot why isn't yum up?
I've been watching that. Does Chipotle have a patent on refried beens or just farts?
Just the Homewreaker Burrito.
Oh, wait a minute. . . .
Their food is ok, but pricey for fast food.
Can't see how they will do well when only based in the us and canada and have to deal with commodity prices.
Yum and mcd at least are global. And from what I can tell are growing at a better pace. I don't get the ramp up in cmg at all.
Have you looked at CMG puts? They are expensive too :(
That's why god invented put spreads;)
They are using the computerized lists of all the cemetaries in big cities; just like they do for elections. BLS got it from the WH propaganda czar.
obamas hope and change
No Hope, No Change
Just Bush in black face...
and the market is at the HOD.
Well, you didn't think they would go half-assed on the fraud did you?
In my country, Belgium, they are now saying home prices are still 50% overpriced.
Never the less, overall prices kept going up last year with 7.8%
Somehow, I still think Europe need to pass this ordeal.
Belgian?
Are you a Flanders-dander or a Francophile?
With your flailing arm avatar... I'm guessing Francophile...
Markets Viagra overdose today will be phased by nothing!
I suppose they're trying to keep everyone pacified prior to Thanksgiving. Don't want everyone panicking at the dinner table now, do we?
That's not it -- it's the black Friday and the next few weeks that follow they're worried about.
What am I missing? Why is the dollar dumping? I though with higher employment the USD goes up ?????
Crude goes up = dollar down. Crude went up a buck in 40 minutes on a build of
1029k verses a draw of 2000k.
Crashing housing doesn't stop investors from buying stocks that have outrageous P/E ratios.
CREE getting HeatMapped:
And then there are the famous "Black Friday" screamers like AMZN.
New, world record high.
They should drop it from the HHH and put it in the XRT....
LOL...
Do you think you could do everyone a favor and stop posting charts of random fucking companies that are positive for the last several hours?
Seriously, that shit is as lame and tired.
It's an AI. Robotroll has been designed to post positive charts, naked women and pictures of buffalos, not to interact with organic things.
But Cramer says Buy Buy Buy
Watch and learn. RT has a great feel for markets. This is useful info for anyone who trades conversions or volatility. If you are a perma-bear, just view at as a blow out top like '87, the tech bubble, tulip bulbs, etc.
Boo-yaa
Ramp up in Cree doesn't make sense, it's lighting in construction.
Why are homebuilders up? That long winter coming of no new sales and record low sales coming?
Sad.
I think we're going back to 2001 levels by May of 2011 when houses get dumped and people get desperate.
Too bad the book value claimed as collateral for the debts against these properties aren't also reaching an all time bottom. I think they're still at an all time high actually... and while we're at it, how many are non-performing?
A second house next door was abandoned yesterday;purchased about 30 months ago at a very low price after being empty for two years. No r.e. sign so I think they just took their stuff and departed. The other one has been empty for almost two years, no longer a r.e. sign there either. Who's making up that loss of school taxes?
You are dude.
Where are the jobs?
There aren't any.
But that doesn't stop the PigMen from squeezing out a bunch of nay-saying short sellers.
I really wish there was an option to block some users. OH btw your great 'short killer rally' hasnt even recovered yesterdays drop, do you have the attention span of the avg american and forget we've been around DOW 11,200 for a few months now?
At least take away the ability to post images. I mean, what the fuck? When does that shit get played out?
I dont know how the contributor status happened, RoboT might be Tylers step brother or something but anyway the chart of the hour and picture has just gotten wildly annoying...simple to fix though if a user could just ignore another!
Somebody here has to represent Cramer. Don't they? Buy Buy Buy
"wildly annoying.." And your single mindedness isn't?
lol
Guess you don't get it! Someone has to point out the current Reality of the financial markets. Despite your wishes to the contrary, a crapton of folks are STILL swimming in de-Nile!
Actually the Dow was at 11497 back on Oct 1st 1999!!!! Oh and the dollar was worth about 35% more..........Look at how far we have come in 11 years bawahahahahah. It really is a joke if you look at the numbers.
truth.. oh no not the truth
Truth!!! Gas was 1.19 a gallon, Milk was 1.75 a gallon, bread was 99 cents a loaf, a bottle of tylenol was 2.39...ect...ect...ect... could go on all day.
That's not the truth they are looking for..
House prices need to hit '96-'97 levels before people can afford to buy.
Already the median net worth of the American household is at 1998 levels. ie a 13 year set back.
...generally must agree with you, Snow. Prices must come down or household incomes must go up or both. I bet on the former with little help from the latter. Housing will stabilize at 3 times average household income.
median (not mean so you don't include bill gates et al in here since average is way over median) income is $50k. Median home price is $195k.
Median home price SHOULD be $150k (income remaining the same), which are 1997 levels, or another 20% drop, or at the current rate of price compression 3 more years until bottom. Then it is about growth which means roughly 10 years later to get back to 2007 levels. If we are still around by then.
I don't think median income has any noticeable increase coming....
I don't see how we maintain current income levels, unless we come up with a better mouse trap. Some amount of wage-price spiral seems on the way. Just my $0.02
Snow & Rain - Agree. Housing will eventually return to it's long term trend line. Only when something does that, it often over shoots below trend, taking that much longer to return to normal. Many years of pain in the house sector to come.
The housing sector's "pain" is the first-time buyer's reasonable price.
The reasonable price used to be a ration of housing to income. I vaguely recall that the ratio in Californica was way over 50%, which is a sign of: you are going to get screwed and should find housing in your range or a job elsewhere because someone else is getting your hard earned pay.
Ponzi stuff, as it turns out.
I got it...Maybe the Fed should lower interest rates!
Yup! If the Fed would just lower the rate to around -3%, I'd be a borrowing fool! :>D
My home lost 130k value in two years. So much for working hard and saving to get ahead. Oh, and with the job market crash, I needed to move.
It is all a big bullshit sandwich, and everyone except the bankers have to take a bite.
Yes, but I do think the banksters feel the moral pain from their actions.
As they charge you for the sandwich.
LOL... good thing they can take their millions and spa that guilt away.
You didn't fucking 'save'...you bought a house with money you didn't have. Boo hoo.
Pelican, when those crocodile tears dry look this word up in the dictionary:
S-E-L-L
so much for working hard, blah, blah, waa, waa, waa... Paid to much? Refi'ed out too much? Figured you would work the same job uninterupted until your happy retirement days? - half the idiots that are upside-down sucked big bucks outta their houses... Soley Banksters fault - err, I think not...
there's nothing shaking here where i live (southwest michigan) ...... you can't even GIVE a condo away ! & in the normally busy part of town the roads are pretty much empty. PEOPLE ARE BUYING ONLY FOOD & NECESSITIES ...... you can feel something bad is coming..... i overheard an older woman @ WALMART yesterday saying that all 3 of her sons are losing their jobs this week. !!
The road comment resonates! I noticed last year how little traffic there is at most times of day... like the people just disappeared.
And often Sam's and WallyWorld parking lots are not full... sometimes, far from full. (a subject of annoyance; why does Sam's not let in paying customers in the early a.m. when they're open anway and parking lot has only 5 or 6 cars of business customers? Let's shoot ourselves in the head by denying service to people who want to pay....
Of course the median price of new homes is at a low. Builders are now building smaller lower quality homes.
Have prices for the same size and quality gone up or down?
Not a good thought for the millions of Mc mansions that are in the shadow inventory or in the pipeline for foreclosure. Who's going to buy them? Can anybody say mark to nothing? We are slowly approaching the bigger leg of the housing downturn, the prop is starting to lean and it's not subprime anylonger. The higher end is starting to get pummeled and eventually every property shall hit its 1999 value...count on it!
Custom suburban homes north of 500k are becoming obsolete.
+++
I've been saying this for 3 years. Mania busts will always fully retrace their prices. 1999 is a good marker.
I had a thought about this last night. For full control, wouldn't The Gov need to control all the housing units, like in USSR? I'll bet they'll do it. Soon. And then we'll all be "resettled". About three decades ago there was a government plan to resettle all US citizens where it would be convenient for government, it was discussed at meeting attended by someone in my family. No lie, they were perfectly serious. Probably there's still paperwork somewhere in the bowels of Gov. If anyone has paperwork, please post at zerohedge.
The market is extremely saturated. The new homes are competing with exisiting homes and with the new home prices falling and builders giving out incentives exisiting homes are going to take another hit.
This report cannot be correct. Cramer told us housing had bottomed.
Never mind that folk rip copper pipes out of useless foreclosed homes and sell it for f'n milk money. Forget the mind boggling Rocket Docket, the FBI raids, the FDIC lawsuits, Freddie, Fannie, Fraudclosure Fraudclosure Fraudclosure.
Cramer said housing bottomed last year.
Not even Cu; polyvinylchloride a.k.a. PVC pipes. They go after the wires. The scrap guys in Oakland and Hayward are in the catbird seat, like the coin shops. Without China buying up the Cu they would be chugging around in the yard with wheelbarrows.
They have to store the Cu inventory somewhere...sell it to them again!
Data disaggregation into state-level median house prices would be better. 50 states, myriad micro-economies. That said this will take years to settle to find a new lower plateau.
I offered IndyMac 40k cash last month for a condo in Concord Ca that sold for 161,000 in 2006. IndyMac refused to update its comps sheet to the real world and we got summarily rejected. The trustee auction is Monday and they have already posted that they want the full 161k bid or they will REO the four walls.
I feel perfectly fine they dissed us without a word; I will offer 30k next year this time.
Saxxon,
There you go, that is the right attitude. Epic bubble, epic price collapse - nothing pays like patience.
I ran across a apt bldg that is mispriced. FP offer, all cash 3-week close... A little TLC and its a double-up... IF they get multiple offers, I'll go sit on the bench - there will be another bus along in 20 minutes, or 2 years or whenever...
NOTHING PAYS LIKE PATIENCE.
my father left me a house when he passed away. can't sell it as the market has tanked. so now i have a house with shitty tenants that just tear the place up and cost money to keep! dear dad , why didn't you die a little earlier. like when the housing bubble was doing great? i mean that would have been cool. anyway r.i.p.
If you can't make money renting it out, you should probably sell it for a loss and go back to school. That's some of the easiest money there is outside Wall St.
The train wreck that is Housing rolls on down the tracks. Bonds also down sharply.
http://www.chpc.biz/Major_Cities_Chart.htm
Japan Housing prices declined for 15 Years! Where does it say prices have to stop at 1999?
http://seekingalpha.com/article/113662-the-u-k-housing-market-forecast-to-2012-part-3-of-3
We're Tokyo 1993.
"Real Estate is Looking Up."
"There's Never Been a Better Time to Buy."
Message brought to you by THE NATIONAL ASSOCIATION OF REALTORS®.
Kinda like TV drug ads that show prancing, joyful actors trying to distract you from that small insignificant side effect of sudden death.....lol
I am a realtor in the MD market if it were not for Base realignment by D.O.D we would have to change our state name to Ohio II
I am so proud of my job. not
http://www.youtube.com/watch?v=QmaiUaIKSQw&NR=1
Not to mention when the Boomers start retiring, small 1-story houses will be in demand, not the tri-level 4,500 SF McMansions... and all the Bubblers thinking they will get out in time while everyone else will get washed over by the generational tidal wave. Sounds so, well... Typical.
patrick.net
Good site for all things RE.
Have a great and safe thanksgiving.
Hey Zero Hedge, no need to post this relevant and interesting data point. It's been all over the MSM, then tweeted, retweeted, Dugged, Facebooked, and URL-shortened everywhere. And Apple added a nice gradient to the chart, which generated incremental read rates of 140%.
Oh, wait....