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Realistbear

Official C N N: H P I Is Over, Its Now A "buyer's Market"

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http://money.cnn.com/2006/07/25/news/econo...dex.htm?cnn=yes

Realtors: Home sales now a 'buyer's market'

Sales fell for third straight month in June; nearly flat prices make double-digit gains seem like a distant memory.
By Chris Isidore, CNNMoney.com senior writer
July 25 2006: 10:47 AM EDT
NEW YORK (CNNMoney.com) -- It's official - even the nation's leading group of real estate agents now says it's a buyers' market in housing, as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers.
The news came in the National Association of Realtors' report for June
, which showed that home sales fell to the slowest pace since January last month while price gains were the smallest in over a decade.

When the EAs say it is over it must be getting bad, really bad. HPI is dead, long live the HPC! :D

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http://money.cnn.com/2006/07/25/news/econo...dex.htm?cnn=yes

Realtors: Home sales now a 'buyer's market'

Sales fell for third straight month in June; nearly flat prices make double-digit gains seem like a distant memory.
By Chris Isidore, CNNMoney.com senior writer
July 25 2006: 10:47 AM EDT
NEW YORK (CNNMoney.com) -- It's official - even the nation's leading group of real estate agents now says it's a buyers' market in housing, as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers.
The news came in the National Association of Realtors' report for June
, which showed that home sales fell to the slowest pace since January last month while price gains were the smallest in over a decade.

When the EAs say it is over it must be getting bad, really bad. HPI is dead, long live the HPC! :D

RB,

I'm not a follower of the US real estate market, but when did the EA's and VI's stop talking about great housing value and boasting about HPI predictions etc?

AFP

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RB,

I'm not a follower of the US real estate market, but when did the EA's and VI's stop talking about great housing value and boasting about HPI predictions etc?

AFP

The larger City newpapers started issuing the warnings in early spring. They based their articles on the dropping median prices, rising inventories and other tangible data. The US track house prices with more detail (median, mediums, time on market, inventory numbers, percentage of asking price realised) so they can get an accurate read on the market. There are no surveys, to my knowledge, that are based on "asking prices" which our VIs love to use. The US EAs and the NAR have been a little slower with the full admissions of a turning market only just now coming out.

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Its awful in the Massachusetts Bubble Market:

http://www.boston.com/business/articles/20...n_mass_jump_66/

Foreclosure filings in Mass. jump 66%

Trend in higher rate of notices expected to extend through '07
By Kimberly Blanton, Globe Staff | July 25, 2006
Foreclosure filings in Massachusetts increased 66 percent in the second quarter, according to data released yesterday, a trend that is expected to continue over the next year.
Mortgage lenders filed 4,292 notices of foreclosure against homeowners during the second quarter, up from 2,585 a year earlier, according to ForeclosuresMass Corp., which compiles the data from Massachusetts Land Court. That 66 percent surge in filings compares with a 30 percent rise in first-quarter filings.

The UK market is going to follow the same pattern as we have had the same, or far worse, irrational exhuberance and our ability to withstand a crash is far smaller. The US HPI is limited to around 20% overall with only limited markets with 100% plus inflation over the past 5 years.

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It gets better:

http://abcnews.go.com/Business/MarketTalk/...3488&page=1

The inventory of homes for sale is increasing to a level that hasn't been seen since July 1997. The survey shows that in June, the nation had a 6.8-month supply of homes. When supplies tick up, buyers expect incentives, and price drops to close on a deal.

The supply side of the equation points to a seismic shift in demand. Its back to the good old days of the Great Crash of '89. :lol:

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The US house price falls have been caused by the ratcheting up of the FED rates... but i just cant see rates rising by as much in the UK. However nordic house prices have been cooling following the ECB rates rise and the nordic central banks following. Even the EA's admit it http://www.thelocal.se/article.php?ID=4349&date=20060717

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The US house price falls have been caused by the ratcheting up of the FED rates... but i just cant see rates rising by as much in the UK. However nordic house prices have been cooling following the ECB rates rise and the nordic central banks following. Even the EA's admit it http://www.thelocal.se/article.php?ID=4349&date=20060717

House prices 'are cooling off'
Published: 17th July 2006 11:04 CET
House prices have begun to level off and real estate agents no longer believe prices will continue to increase as they have been in recent quarters, according to a report done by state-owned loan company SBAB released on Monday.

It is nice to see some reality coming from EAs in the Nordic zone. Seems that only our EAs are still spinning.

The Great Crash mostly affected the Coastal markets in the US. I sold in the California market in 1989 for $374k. I had bought the house in 1987 for $274. My Realtor, with whom I still keep in contact, said our house sold again in the early nineties for about the same price we paid for it in 1987. The drop was around 30% or so. Some areas suffered a great deal more. I bought a property in Godalming Surrey in late 1990 for 189k pounds that had been bought in 1987 for 249 pounds which gives you an idea of the how the Great Crash affected the frothy areas in the UK. I sold it due to another move in 1992 and broke even (it was a bungalow in a unique area and I had no competition hence the small "loss".).

Edited by Realistbear

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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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