Thursday, July 24, 2008

Price cut to 2,500 pounds (not from, to!) and house still won’t sell

Fannie Mae Unsold $5 Billion Homes Bring Peril to Shareholders

Fannie Mae, the largest U.S. mortgage finance company, couldn't find a buyer who would pay $6,900 for the three-bedroom house at 1916 Prospect St. in Flint, Michigan. So broker Raymond Megie, who is handling the foreclosure sale, advised cutting the price to $5,000. Megie still couldn't sell it. ``There's oversupply,'' he said. The home sold in 2005 for $110,000.

Posted by richc @ 12:03 PM (1121 views)
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17 thoughts on “Price cut to 2,500 pounds (not from, to!) and house still won’t sell

  • Jeez, from $110,000 to $5000; that’s over 95% drop in price since 2005! Now that’s what I call HPC.

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  • Place stripped of copper? Adjoining houses boarded up? Crack den next door?

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  • Whostolemyendowment says:

    Good buy if you don’t mind a crack house next door. I guess there are a load more in the neigbourhood.

    By the way, Flint – Michigan, is Michael Moore’s old town…wonder if he’s working on a new book or film ‘Dude, what happened to my home?’

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  • Place stripped of copper? Adjoining houses boarded up? Crack den next door?

    sounds like the ideal holiday home for Amy Winehouse.

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  • not the best area though

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  • Flint is not pretty — post-industrial, bad weather, few amenities. But couldn’t that also describe large swathes of the UK? And how much are “luxury” flats in Liverpool currently selling for?

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  • you can still buy whole streets for less than a $1000 in parts of the states, but you will have evict druggies with guns…

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  • then again that does sound a lot like liverpool… druggies with guns..lol

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  • yorkshireman says:

    Imagine trying to convince folks one year ago that this would happen. A “property” with no value. USA today, UK by Christmas.

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  • yorkshireman…. lets hope your forecast comes true… UK by xmas…

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  • Back in the mid-90s, entire streets of terraced houses in the north of England were allegedly being sold for a pint of beer in the local pub. I can’t find any references to verify this story (it was in pre-internet days), but I remember reading about it at the time.

    Fundamentally the housing market depends on employment. Places like Flint, Michigan are shedding jobs and people are leaving – hence no demand for property.

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  • yorkshireman @9 – there are banks with no value, no need to convince anybody that a houase can have no value.

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  • “house”

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  • oh right, so when it has value and prices are being ramped up, its a “property” but when its being sold for bugger all and there’s druggies with guns, it’s “a house”…. words escape me.

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  • yorkshireman says:

    Hi Mikedx. The word “property” really grates on me too as for most people, it is not their property, but that of the bank. I regard my own house as a home for me and my family, not as a property or anything else.

    Icarus .We know that there are banks and companies which have no real value. There are some very clever and well informed people on this forum who can see through the issues for what they are. However, the banks et al seem to work on the basis that if the mass of people cannot understand the situation or arguments, they will never be able to dispute them. In my view, this is why a large, but diminishing number of people, still need to be convinced of the obvious, namely that values are falling and falling. What a difference from 12 months ago.

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  • ‘Houses’? ‘properties’? Actually the word most used in the US press is ‘homes’.

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  • And they’re lived in by ‘folks’.

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