This page has been archived and commenting is disabled.
Less Than 500 New Homes Sold In Over $750,000 Bracket For 4th Month In A Row
One thing becomes apparent when looking at the price range breakdown in the just released latest New Home Sales breakdown - the quality, or rather price, of homes sold continues to deteriorate. As can be seen on the chart below, November is the 4th month in a row in which there was (Z), or less than 500 houses sold in the $750,000 category. And while there has been a consistent deterioration in virtually all other price buckets, one is stable: that of the under $150,000. Luckily, the banks keep on leaking out those foreclosed upon properties with the regularity of Old Faithful. Now if only they could releases the 6 million in shadow inventory homes so the housing market could finally clear, thing may actually be optimistic. Alas, as long as they are held on the books, and buyers, who it just happens are not idiots, refuse to pay top dollar knowing well tomorrow a far better deal may hit the market, there is no hope for either the housing market rebounding, or by implication job creation finally picking up. Thank you Centrally Planning Ben. May we have another?
»
- 14361 reads
- Printer-friendly version
- Send to friend
- advertisements -
Long tents.
And FEMA camps. BYOT.
Fine but my FEMA camp better have granite counter tops and an open floor plan.
Winter of recover!
In Los Angeles many banks have now completely stopped sending out default notices - because the non-performing loans and depreciating equity and collateral would become publice record - and what bank would ever want the public to know anything, especially how rotten their whole and entire housing "market" portfolios really are and thus exactly how utterly bankrupt the banks and thus by extension the US itself are?
"Shadow Inventory" - i.e. properties in-default-but-not-being-foreclosed/reposessed/REO'ed - is one thing - NOW, to realistically assess US real estate markets, inventories and thus future realistic price performance one must equally figure in what I call Super-Stealth-Non-Inventory-Non-Assets - i.e. non-performing, depreciating-un-accounted-liabilities - i.e. future terror bombs uder the US financial card-house.
Just like Obama's henchmen are telling US State Attorneys to refrain from investigating any banks and bankers, you can be sure that the US Federal Government and Federal Reserve have advised, admonished and blessed US banks to enter this new phase of derivative & stealth inventory "accounting".
After All, who wants US Empire to collapse over Christmas?
Just kick the collapse down the road - till sometime 2012 - and 2013 - ....
Convulsions, Bitchez! There Will Be Blood - & Convulsions.
Just kick the collapse down the road...
It's unfair, but it's possible this could work.
If the rest of the global economy has collapsed while the USA is still running on air like Wile E. Coyote, we may be able to strongarm another global economic framework that continues pumping wealth and resources from the competitive economies to our own.
Seems like the obvious objective, no?
eureka,
i'm not doubting you but i find that difficult to believe. two of my neighbors are being defaulted as we speak. i know this because i speak to them frequently and they have just given up fighting bank of ameri-nazis.
Long Oxazolidinediones (hint: anticonvulsants)
"Just like Obama's henchmen are telling US State Attorneys to refrain from investigating any banks and bankers,"
@ eureka, you can thank the Banking Reinvestment Act and the following. A must see for every Zero Hedger.
The US news media failed to draw the obvious connection between the bizarre federal law enforcement investigation and leak campaign about the private life of New York Governor Spitzer and Spitzer's all out attack on the Bush administration for its collusion with predatory lenders.
While the international credit system grinds to a halt because of a superabundance of bad mortgage loans made in the US, the news media failed to cover the details of Spitzer's public charges against the White House.
Yet when salacious details were leaked about alleged details of Spitzer's private life, they took that information and made it the front page news for days.
From the 9/11 fiasco, the Iraq War, the travesty of the federal response to Hurricane Katrina, and the shredding of the US Constitution, we can now add a deliberate and reckless undermining of the credit and banking system of the US to the list of Bush administration "accomplishments."
No external enemy, or group of external enemies, could have done as much harm to the nation as this group has in less than eight years.
Hey, do you think it's a coincidence that a Bush was involved the last time the US banking industry fell into a black whole because of White House-facilitated fraud?
There's actually a lot of money to be made blowing up banks. Here's how Bush Sr. and his friends in the Mafia and CIA profited from it the last time:
http://www.brasschecktv.com/videos/money-madness/why-eliot-spitzer-was-assassinated.html
The video doesn't add much. Here's the op-ed itself:
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR200802...
Let me see----- Bush's fault!
Barrack Obama, aka the biological son of Frank Marshal Davis, has had almost three years to find solutions. If he and those who blame the previous adminstrations for everything spent some time working on problems instead of blaming others we might have found ourselves on better footing by now.
BTW, how come no one blames Clinton for 9/11? He was in charge for half the time the little jihadi's were learning to fly here in the USA. Seems like if the current guy can blame shit on the last guy for over three years then Clinton must be responsible for what happened less than 10 months into the admistration of the new guy.
Does Viking make camping stoves?
...with chimneys.
Done!
Long tents, short ropes? ;-)
Quite the NUMBer. Kind of like high end car sales here in India.
If Benz sells one Maybach in three years, it's a good three years.
ori
/fractal-animal-hypnotic/
Tents and tent accessories.
Add Vancouver, BC to the data set and you could quadruple those numbers.
http://www.buyric.com/news/2011/12/residential-home-sales-increase-great...
Hot Asian money. Same in Seattle and Portland. Looks like a bubble but there's plenty more where that came from and Asians love the rain!
Homeless Happy Holidays
"regulatory of Old Faithful" ????
Regurgitory? ;)
Regularity.
Regurgitatorialy regular.
So, I can't sell the house in the Hamptons, so I'll just steal some more of my clients money through re-re-re-re-hypothecating their cash account through a London proxy doing business in Hong Kong.
Easy......problem fixed.
Don't forget to do the Chinese reverse merger with the client cash and pocket some skim....
aka. recursive rehypothecation.
http://www.youtube.com/watch?v=RAKsMnAM8vk&feature=related
Good thing they padded these stats or we'd really be in trouble.
Those $150k homes will be worth $90k in a year or two. Why buy now?
And next year, when they are 90K, why buy when they will be 45k the following year?
We are ahead of the curve here in Florida. The house across the street from mine sold for $196,000 in 2006. It is for sale now for $45,000. That price reflects a price drop of $7,000 in September, and still no buyers. I am thinking of offering $25,000. Problem is, they would probably accept my offer, and I figure around mid 2012 I can purchase it with my credit card for 10kish and hold the deed in my hot little hands. If they can find the deed that is.
Your property tax bill may reflect a number higher than $25K.
And? In 2010 it was assesed at $73,227 and the tax bill was $749. I think I can handle it.
Yes: In CA someone purchased a property for X. The government said X was an obvious distress sale/situation, and CA assesor valued the property about twice the sale price for tax purposes.
I just LOVE democracy!
A radio show I like to listen to is "Handel on the Law". He received a call from a lady who was part owner on a property that was owner financed. To clearify, she was part owner of a property that was sold and the owners (her being one of them) financed the mortgage. The new home owners have made their payments and were not in default. Her call to Handel was to ask what should she do if the new owners stopped making payments on the mortgage to them. She wanted nothing to do with the property. She was pushing Handel for an answer on how to simply give up the property so that she wouldn't have the property taxes or any other liability associated with the property and she was quite willing to give up all equity she may have had. In other words, she was willing to give the property to the new owners for free (her percentage of the equity).
If I were that owner and I knew of her position, I'd stop making payments even if I had the money just to get that equity for free. Sounds morally bad but face the facts. If you can get a better deal, you would too. It won't be long before people are dumping property left and right. One reason is that property assessments for tax purposes are generally at least a year behind when home values are declining because the county wants that higher assessment for tax purposes.
Handel exclaimed that was a first. I doubt it will be the last. BTW, the answer given to her was to quick deed the property and walk away if that was what she really wanted.
Maybe this is The Bernank's plan to fix inflation in 15 minutes?
The house next to mine sold for $125K in 2002. The bank owns it now and can be purchased for $25K. It remains empty. I attended a Bank auction where my $5K bid won but did not meet the $25K reserve. I planed to have the house bulldozed so my yard would be larger. Eventually the Bank will take my offer.
Sweet! What state is that in?
add to that the cost of heating that 4000sq of mostly vaulted ceiling space, as the price of heating it doubles and triples into the coming print fest and you couldn't pay me to take one of these homes with the 20k and growing yearly tax hit.
Right...heating and plumbing more than the cost of the deed....but the present value of taxes, insurance, services and maintenance will turn it into a great money pit...tax loss x 100 years?
visualizing a perfect storm of: rising taxes / Jefferson county cost of flushing (after JPM takes ownership of your municipality) heating costs tripling on war related energy disruptions / no clear record of ownership up at the court house / ever rising adjustments to mortgage servicing fee via fnm/fre on all paper everywhere new and preexisting... oh, and tax write off of income being phased out (aren't they already kicking the booboo on that one ?) Yea I want to throw myself off a cliff and be a home owner in Amerika lol
The savy thing to do is to rent cheap and buy LULU and let all you home owner/moral bitches out there pay me via fed printing.
thanks peeps.
/sarc
sorry, can someone clarify, is that less than 500 homes sold for over $750k across the entire USA for the quarter?
It can't be across the nation. I can look at Redfin stats within 5 miles of my home and there are a handful of $750k sales. My neighbor just listed a home at $700k and it went "pending" in less than two weeks. This story is misleading. Another silver proof spoof perhaps.
for crying out loud, just like my university professors telling me to research my own work... anyway link saying "web page not available"
Link works fine. Here is the landing page...
http://www.census.gov/construction/nrs/pdf/newressales.pdf
Regarding your neighbor listing his home, Magnum, read the headline:
link works now, and thanks for the guidance. even if this is NEW homes the statistic is... inconceivable!
Heck, why buy a home anyway. In Florida 18% of homes are VACANT! Just pick a nice one and move in. If anyone even notices, they will most likely appreciate someone maintaining the place.
Right. Save 'em the pest control fee by clearing weeds and they'll let you squat
They actually caught a guy earlier this year in central Florida that was renting out houses that were abandoned (which he did not own), and the authorities were not sure if he would be charged since there were no complaints from the banks or his tenants. If you made this kind of shit up, no one would believe you.
If they prosecute him, they might have to prosecute the foreclosing banks.
Too risky.
The bank's asset is better protected by a squatter than when left empty. They were no doubt, satisfied with the arrangement.
And when you leave, send a bill to the bank for $200/month maintenance.
Did they automatically reduce the numbers by 14%?
Or is the NAR the only ones admitting their "mistake"?
Amazing how they have the balls to put out more statistics.
NAR: We lied yesterday...but we're telling you the truth now...honest!
Welcome to the recovery.
150 homes and 29 silver.
Welcome to America.
Scateboards on the sidewalk, free public schools, and Van Halen in the background.
Maybe it isn't all going to hell. Maybe it was just a bad dream!
I'll take a garage sale with that, and raise you one.
The two Americas: one where people barter on Craigslist and don't buy from businesses, the other where butlers whisper that a package from Tiffany's has arrived. The middle is dying out gradually
We have become a Craiglist Economy.
If you want a deal, or want to know what price something will sell at...Go to Craiglist!
Take a look at the equity prices of the banksters' banks before you "blame Ben." they can't get out of their own way. With Al Qaeda now executing on their plan to overthrow the House of Saud via "Al Qaeda in Iraq/Syria" and "dee fireworks are coming fast and coming furious."Sure was quite the decamping out of DC this session. Only one's ...'"left behind" were the thousand or so Staff Officers who are now gonna run...pretty much everything now!
Apparently the banks are attempting to implement the "De Beers Model" with considerably less success!:)
One can buy Detroit for that much. Not a house.. the whole City.
Detroit...better off as a national park
Here's an idea. Redline Detroit and make it a NO TAX Zone for 100 years. See what happens.
I wonder if foreclosures hitting the market will cause the prices of houses to move higher or lower? How are mortgages going to work when banks are closed? Then people will really stop paying.
As an aside, I'm watching CNBC and it is scary even by that channel's stanrdards. These people are FUCKING MONKEYS.
Well I know it sounds perverse but in the long run the prices might go up do to the foreclosure attrition. Did anyone see the 60minutes segment where cleveland was demolishing abandonned foreclosures?
Basically it said that thieves swoop in and steal anything of value same afternoon as the foreclosure or eviction goes through and make the home unmarketable for lack of a better word.So cleveland has taken to demolishing them at its own costs, anywhere from $4,000 - $16,000 ( higher if asbestos).
If all the foreclosures are taken permanently out of the housing stock it could stabilize prices in the medium to long term.
Hmm where can I find a city to pay a newbie to operate an excavator?
If Obama had any brains or ounce of compassion he would create some sort of work program involving an agency rescuing this potential housing stock and then renting it out way below market to the unemployed etc.I mean since he has no problem with the government being that involved int he economy already. Not saying it would be great for the economy or capitalism but it would make him win the election hands down as the masses would approve of such a policy.
Lil problem: even if you reduce the housing stock through bulldozing, the price to rebuild exceeds affordability as real incomes drop and household net worth too. So builders are trapped. Prices can't go up in the current modality. Japan was a mild example of what's to come and that was during the boom years
Banks can't even afford to mow the lawns on foreclosed houses and clearly don't want to take the L on the mortgage write downs because they need to make up good quarterly numbers in order for the executive's large stock holdings to retain value. Putting billions of bad mortgage debt on the books might mean the minimum at the country club dining room will sting more than usual. Does it then seem reasonable that the same banks will then spend 10k out of pocket (the same companies charging for the privilege to use a shitty deb(i)t card) bulldoze which in turn consummates their lose? A decrepit house probably has more value than non-arable land with a hole although not by much. Given all that and how little sense everything makes, bulldozing en masse will proabably start soon. Somehow bulldozing will really help top line growth. I can see Steve Liesman now saying to go long big banks because they are bulldozing their way back to profitability.
across the street is an empty house, been that way for two years, not even an attempt by the bank to sell it. Why should they go through the trouble of even trying to sell it, it's already been purchased by all of us and it sits on the Fed's balance sheet. It just stands there rotting in the beautiful Southern Florida wilderness. Big Gov, what a waste
If US citizens win instead of the globalists/banksters/politicians and nefarious agencies that are orchestrating the war on the US then US citizens could put all of them and their immediate families in one FEMA camp. Government spending cuts - solved.
After all, those FEMA camps were built with OUR money in the first place! Whatever nefarious plan they are hatching against the citizenry with these camps, they better beware it works both ways. Put us in the camps, get us organized and soon those camps will be bastions.
The high end housing is still saturated with foreclosures and shadow inventory. Only the $200k-$299.9 segment is "healthy."
And likely that many of the $750+ homes are in the DC area.
New Home Sales Increase 1.6% (Slower Than Expected) and $750k+ NHS Dead - Central Banks Rates Doing Limbo Rock
http://confoundedinterest.wordpress.com
Agree that there's probably a big chunk of the $750K+ homes in D.C. area. Friend of mine just sold his place in Fairfax, about 30 miles W of D.C., for $1.25M, which we figured was only about $200K off of its 2006 high. And he sold it inside of 4 months. So like everything else, D.C. is "largely unaware" of reality. :D
There's a home between Rockville & Frederick MD that had a $1.7M construction cost/mortgage in 2007. No takers when the price was dropped to $850K. It's 11,500 square feet, five acres, forty minutes to K street, DC. On the market two years now.
Notably, Y/Y November MEDIAN prices dropped from 219,600 to 214,100, while AVERAGE prices fell from 281,700 to 242,900! The collapse on the high end is stunning, but makes sense. The next question is, why are low-end new homes being constructed at all? Everyone moving to North Dakota?
when they sell a bankster-owned home, are they ethically bound to disclose that it was previously owned by a fuking zombie?
(heh heh)
Here's the thing. I live in Silicon Valley where every sale is over $750K, but they're existing homes. I guarantee you there were far more new homes going up in 2011 with a value over $750K, but most of those (especially in less densely populated areas) are built to order by the owner. Still, less than 1000 spec new homes selling in a month is pretty bad.
Where does it say custom homes are excluded from the survey?
I wonder if my bank will underwrite a Jumbo loan with my downpayment in Greek and Italian bonds?? Hey, it's good enough for the ECB. And then I could rent the place out at well below the mortgage payment and eventually declare default.
Aren't I clever? My plan just explained the f*cked up logic of the LTRO.
So in effect a house has become a depreciating asset like a car or a computer. I wonder how much of a house you could build for $25K?
If the price of oil keeps rising, millions of drafty old homes will be worth more as firewood than as housing.
That's why the hard wood flooring is a must have...i love the fact that people still dont get it...everyone pretty much bought a new house, got a new car, and has three flat screens...theres nothing left to buy but retro jordans!
There is no buyer.
In the greater Palm Springs area there is a 2 1/2 year supply of homes over $1 mil on the market--and inventories are down, generally. Almost no bank owned properties for sale here now, so the shadow inventory must be enormous.
2 years ago I decided to re-tool into a new career. I used to sell between $3m and $5m a year in new homes here in OKC. This year sold 2 homes for about $450k - worst year ever (15 years) for me. Most of what I sell is around $275k, about $115/sq ft, high quality (custom built cabinets, granit window sills and counters, all walkin closets and 3 car garages, etc).
Anyone who wants to buy can't get the loan. We have a long road in front of us to clear this inventory. I can't imagine Nevada, California, Arizona, Florida or Michigan - REALLY bad there.
Last note - Larry Yun needs to go to jail for fraud, or something - what a liar that guy is. Most Realtors I know are ethical and honest, but the NAR is a den of slime bags and so are a huge chunk of the brokers and owners of offices. I won't miss it, but I feel sorry for the public trying to navigate the shark infested waters.
Where are the stats backing up this claim? I doubt many builders are participating in this market to begin with. Why would a builder take the risk when a buyer can pick up a build job and older home at a rock bottom prices. There are only 107 homes listed for sale within the entire Dallas/FT Worth area that are new builds built in 2011. There were however 1,328 (avg. 112.3/month) total (new and and pre-owned) sold in the Dallas/FT Worth in 2011. The author is correct in that the foreclosures do need to be allowed to clear. I will say though that 2012/2013 will be interesting years for builders in that most of the cheap lots that they have been building on have been greatly depleted. The builder is now going to be faced with higher lot costs for the first time in 4 years on top of trade labor and materials costs that never really came down much at all. This, in my opinion, will make 2012/2013 a very difficult year for the builders.
Folks, checkout your local area and notice all the old motels converted to single family rental housing units. Imagine what you would think of the Wall Street generated American dream if you lived in a 500 sq ft home with a three digit number affixed on the outside of the only exit/entry door to the place!
The Wall Street elites better start wearing full body armor when they leave their gated communities because there's plenty of people around who know all about freedom's just another word for nothing left to lose! And the Wall Street elites better make sure and pay their Blackwater security staff damn good salaries, too!
Who said they had to leave their gated communities? With broadband internet, they can steal globally from home. With the press of a few keys, $1.2B arrives in their offshore bank account.
500 sq ft home? One door?
In Hong Kong, those sort of things are called "luxury condominiums", purchased by "those who have finally arrived". Most are named something like Double Golden Fortune Lucky Happiness Estates or Beverly Hills Shores. At that size, most would have 2 or 3 bedrooms, each large enough to hold a queen size bed and little else. Oh, and the sq footage is measured as a circumference, which means walls and closets are part of the area. Toss in a percentage of communal space near the elevators, and that 500 sq ft is more like 450'. Fortunately HK'ers tend to be short and slight of build.
These little gems sell for US$650K+ depending on locale. Construction quality is poor, and most come with cockroaches already installed. Models are viewed from behind glass or velvet ribbons, and are furnished with specially made miniature furniture so as to throw off the perspective.
Providing such "quality" has made Li Ka-shing, the Kwok brothers, etc. multi billionaires.
The housing market is going to totally collapse.