How To Lose $500,000 A Year In Real-estate

[MarkG]

http://www.nytimes.com/2006/12/06/business...amp;oref=slogin

"On average, the houses that changed hands at the auction had fallen about 25 percent in value since 2005, according to Thomas Lawler, a real estate consultant who analyzed the auction’s results."

Nov 15th 2005, $1,350,000

Oct 21st 2006, $880,000

Ow, that's gotta hurt!

Edited December 6, 2006 by MarkG

[OzzMosiz]

Not read it but...

hahahahahahahahaha

[Fancypants]

http://www.nytimes.com/2006/12/06/business...amp;oref=slogin

Nov 15th 2005, $1,350,000

Oct 21st 2006, $880,000

Ow, that's gotta hurt!

excellent article. If only the press could talk so frankly over here. Perhaps they will, once the horse has bolted.

[Guest Yeahbutnocrash]

There may be some speculators/recent buyers getting burned but people just sitting tight have done fine:

"Now, Naples is not a typical housing market. House prices nearly tripled in the first half of this decade, and speculators, who are more likely than residents to sell a house in a panic, flooded into the area in recent years."

[MarkG]

people just sitting tight have done fine

People who bought in the late 90s have 'done fine', just as they have in the UK... or, rather, they would have done 'just fine', except:

"As Ed Smith Jr., the chief executive of Plaza Financial Group, a mortgage brokerage firm near San Diego, said, “So many people picked up their homes, turned them upside down and shook them like a piggy bank.”

The withdrawals have been so big that the average household in Boston now has slightly less equity in its home than it did in 2000, according to an analysis by Moody’s Economy.com that took inflation into account."

And, of course, people who bought in the last year or two at bubble prices might as well call the bank and hand over their keys.

[Nationalist]

"As Ed Smith Jr., the chief executive of Plaza Financial Group, a mortgage brokerage firm near San Diego, said, “So many people picked up their homes, turned them upside down and shook them like a piggy bank.”

That's a brilliant quote, made me LOL.

[Guest Yeahbutnocrash]

People who bought in the late 90s have 'done fine', just as they have in the UK... or, rather, they would have done 'just fine', except:

"As Ed Smith Jr., the chief executive of Plaza Financial Group, a mortgage brokerage firm near San Diego, said, “So many people picked up their homes, turned them upside down and shook them like a piggy bank.”

The withdrawals have been so big that the average household in Boston now has slightly less equity in its home than it did in 2000, according to an analysis by Moody’s Economy.com that took inflation into account."

And, of course, people who bought in the last year or two at bubble prices might as well call the bank and hand over their keys.

Good point - That's their lookout! I wonder what the stats are for that and for over here also?

Ok, so the semsible ones who didn't shake their house like a piggy bank or did it within reason are doing ok

Remember though that these price drops were for people wanting to sell immediately and don't reflect the actual market which has also dropped but not by so much

[Last Hun Standing]

In a dropping market, prices acheived at auction are by definition the market price.

Those holding on for a sale at a higher price, are going to get burnt even more as the current transaction price falls away from their expectation.

They then end up chasing the market down.

Edited December 6, 2006 by Last Hun Standing

[Slumpmonkey]

In a dropping market, prices acheived at auction are by definition the market price.

Those holding on for a sale at a higher price, are going to get burnt even more as the current transaction price falls away from their expectation.

They then end up chasing the market down.

In relation to this I just wonder how many properties every day are being sold in the uK for under the asking price. Obviously we will never know as EA's would never release such damaging information. However, I have a sneaking suspicion that many vendors are letting their properties go for well under the market price now just to shift them. Is there any way to confirm this?

[Ah-so]

In relation to this I just wonder how many properties every day are being sold in the uK for under the asking price. Obviously we will never know as EA's would never release such damaging information. However, I have a sneaking suspicion that many vendors are letting their properties go for well under the market price now just to shift them. Is there any way to confirm this?

There are some stats on this and they were quoted a lot last year when the market went through its soft patch. I think sales were being agreed at something like 7% under advertised rates. Have not seen the figures recently, but let's face, it is quite a geeky thing to be interested in.