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Yankee

A Chill In The Air For Sellers

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A Chill in the Air for Sellers

NYTimes: May 9, 2006

http://www.nytimes.com/2006/05/09/business...5eb2&ei=5087%0A

An excerpt:

Many Americans who planned on real estate as their path to wealth are beginning to find that there are limits to how high is up.

Blame market forces. As higher interest rates dampen demand in cities and suburbs that only a year ago were battlegrounds for fierce bidding wars among numerous buyers, sellers are grudgingly lowering their prices to drum up interest.

A house at 57 Marina Boulevard in San Rafael, across the bay from San Francisco, was originally listed at $1.45 million. The owner recently dropped the price to $949,000 when a competing house on the same street lowered its price to $959,000, from $989,000. In Marin County, the prices of about a quarter of all listings have been reduced. County records show that 57 Marina Boulevard was sold in February for $700,000, so the owner, Dan Marr, is unlikely to lose money even at the lower price, though he may not make as much as he had hoped. "I don't want to talk about it," he said.

It is getting tough out there for sellers. What is happening in Marin County is being repeated in cities and suburbs across the United States. Nearly a year after the sales of homes peaked, buyers are wresting control from sellers in many areas as inventories of unsold homes have grown, in some markets doubling. Few people are losing money after the run-up in housing prices in the last 10 years, but the air is coming out of the market.

It is a slow leak, to be sure. The most widely used statistic to measure home values, the median home price, shows that once-hot markets like San Mateo, Calif., and Mercer County, N.J., are now registering year-over-year declines. In general, prices are still climbing, but they are doing so far more slowly in cities like Las Vegas and San Diego, which had been lucrative markets for speculators.

"It's going from a seller's market to a buyer's market," said David Lereah, the chief economist for the National Association of Realtors. In March, "price appreciation went down to 7.4 percent, from over 10 percent," he added. "That most probably reflects that sellers are bringing their prices down."

I no longer know who's ahead in the HPC race--the U.S. or Britain. :huh:

Edited by Yankee

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County records show that 57 Marina Boulevard was sold in February for $700,000, so the owner, Dan Marr, is unlikely to lose money even at the lower price, though he may not make as much as he had hoped.

Am I really reading this right? Some idiot expected to make $750,000 just from buying a house and sitting in it for three months before selling it to some other idiot?

Oh, OK, it is California.

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Guest Winners and Losers

I no longer know who's ahead in the HPC race--the U.S. or Britain. :huh:

Australia. :rolleyes:

Best sporting nation per capita in the world you know. ;)

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Guest Winners and Losers

People in this country are either incredibly stupid or scared i'm not sure which

No, just incredibly greedy and brainwashed.

Bunch of money grabbing pohms (prisoner of her majesty's service - for the uninitiated), so you are. :rolleyes:;)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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