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Friday, February 03, 2006

When The Party's Over

The Housing Bubble 2 has excellent coverage of RE news around the nation.

These are Phoenix inventory numbers. In half a year the inventory tripled:
7/20/2005 10748
8/20/2005 14321
9/20/2005 17516
10/20/2005 21806
11/20/2005 26688
12/20/2005 27604
01/20/2006 31457, 1/26/2006 32142

With so many builders out there in some areas trying to unload however they can (some seem to have cash flow problems), older homes coming on the market are under severe price pressure. I don't think any large market is stable right now. Generally smaller and cheaper homes are easier to sell and are the safest bets. Upscale condos and townhouses tend to drop the most in price during these downturns.

Comments:
Pays to but TH/condos and other rental type property.
 
MOM;

"older homes coming on the market are under severe price pressure. I don't think any large market is stable right now."

Good...it's about time. Let the speculators/suckers go back to be fleeced in the stock market.

People can get along without stocks very well, thanks, but a home is a necessity of life.

And btw...I have friends in South Riding development, (Loudoun County, VA), the construction of those places is crap.

I've seen sturdier treehouses.

Give me an older brick or block home with copper or steel pipe and good lumber used in its' construction.

Regards;
 
Bilgeman - I agree. I'd much, much rather buy a 40 year old home than the current dreck they are building.

But I gotta tell you, city women are dumb about this sort of thing! They'd rather buy a new house or even a new condo than an older detached house with land. I have known quite a few couples in which the female half forced the male half into a very, very bad home purchase.
 
MOM;
"But I gotta tell you, city women are dumb about this sort of thing! They'd rather buy a new house or even a new condo than an older detached house with land."

Shhhhh!! For Gawd's sake, woman...the Bilgewife'll hear you!

She's not "hip n' down" with yardwork, and since I'm off absquatulating on the oceans for months at a clip, she'd rather do the "horizontal apartment",(townhouse) thang.

Regards;
 
Good news for me, since I will finally get to buy a house soon when I retire.

Kev
 
Kevin,
I certainly hope so! When 70% to 90% of average homebuyers are locked out of the market in certain areas, it seems that a correction is needed. This has to be the classic definition of an irrational market.

Yet if that correction comes too quickly, quite a few first-time buyers will lose their shirts. It's inevitable, I suppose.
 
Bilgeman - in some city areas there are a lot of well-built older townhouses available. But some of the shoddy newer construction is not a good purchase if you are going to be in there long-term. The maintenance costs will be extremely high and the resale value is apt to go down sharply especially given current trends.
 
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