Saturday, July 15, 2006

"Desperate" Housesellers

From News 10:

After five months of trying to sell her Stockton home, Margo Ray decided it was time to resort to more drastic measures. But when realtor listings, newspaper ads and a slashed asking price didn't close the deal on her $440,000 home, Ray knew her Treetop Drive house needed a new and different kind of showcase. Now, Ray is the only homeowner in Stockton trying to pitch her home on local radio.

Ray paid for 30 radio ads praising her home and all its amenities. The commercial plays this week in hopes of bringing out perspective buyers to an open house this weekend. "It's very weird," said Ray. "And when my children heard the spot, they said, 'Wow, this is pretty weird.'"

Ray put her home of 19 years on the market back in February, but the five-bedroom, three-bathroom home just couldn't seem to get noticed in Stockton's buyer-friendly glut of homes for sale.
Also from News 10:
A Rocklin woman whose three-year old home has been for sale for months is turning to an auction in hopes of selling it. Star Von Laue has listed her three-bedroom, two bath corner lot house with three realtors and reduced the price three times in her effort to sell it. After more than six months without closing a deal, she's turning to an auctioneer...
Max, over at the Sacramento Real Estate Statistics blog, looks at Sacramento flippers in trouble. OCRenter reports that Sacramento continues to lead the pack of housing markets with the highest percentage of reduced listings, now at nearly 43%. Finally, here's a snippet of data from the Sacramento Housing Bubble blog, which tracks foreclosures in Sacramento County:

4/1/2006: 98
4/8/2006: 106
4/15/2006: 109
4/22/2006: 109
4/29/2006: 119
5/6/2006: 125
5/13/2006: 130
5/20/2006: 136
5/27/2006: 148
6/3/2006: 154
6/10/2006: 164
6/17/2006: 180
6/24/2006: 191
7/1/2006: 203
7/8/2006: 212
7/15/2006: 225

16 comments:

Max said...

Just added a Placer County Edition also.

Don't know why I didn't do this sooner. :)

Anonymous said...

Really? Won't sell? What about cutting the price?

If she has owned the home for 19 years, she should have substantial equity in it. (Unless it has been HELOCed out as flat screens, suvs and cruises).

Anonymous said...

I track Rocklin and Roseville. Inventory is skyrocketing and sellers aren't reducing prices much...yet.
She'll be lucky to get 380k.
I would be surprised if 15 people showed up. She's dreaming if she thinks 60 will show.

Agent Bubble said...

MLS #60074350

Did a radius search of active/pending homes within 1/2 mile of her house between 2000 and 2600 sq. feet. Came up with 29 listings, all active. Hers is the 7th least expensive in terms of price/sq. foot. Gonna have to lower it even more.

smoggiebakersfield said...

"Anonymous said...
I track Rocklin and Roseville. Inventory is skyrocketing and sellers aren't reducing prices much...yet......"


Ditto here in Bakersfield. Let the sellers get a little more over- leveraged in debt. I do see selling prices going down, the asking prices are still high. I'm positive this winter is going to be the breaking point.

Gwynster said...

Nothing is going up in Davis, in fact Ziprealty shows that 129 of the 259 listings for Davis are reduced. Some 3 BD SFRs are selling for what 2 BD duplexs were 2 years ago. This doesn't count the serial relisters that feature some nice reductions. I have 5 downs down that just came back on the market for 51k less.

A quick look at the properties on my block that sold in the past 2 years show that 2 of the 4 are now underwater according to Zillow. The 2 others will be underwater by next year easily.

Another sign of the changing times was that Davis built a new elementary school which they will now not open because the child population in Davis is significantly reducing. Which seems odd to me since everyone bases Davis's desirability on it's schools (not counting UCD.

The other thing I've noticed is that rents are also beginning to decrease and the incentives to get a rental are pretty sweet - even in July when students are normally fighting to get into a rental before school.

Happy Renter said...

"Another sign of the changing times was that Davis built a new elementary school which they will now not open because the child population in Davis is significantly reducing. Which seems odd to me since everyone bases Davis's desirability on it's schools (not counting UCD."

In the past few years the couples who moved to Davis have dogs and careers instead of children. I visited a friend the other day and he blames it on Davis growth constraints and their limit on permits issued anually. It's to expensive for the middle class breeders.

Nocal_Prof said...

We used to live in Davis - had a baby and bought a bargain in Woodland a couple years ago. For what we paid for our 2600sf house, we could have gotten a lovely 2BR closet in Davis. Plus we're on a 1/4 acre now.

Not as many pseudo-liberals here as in Davis, who pretend to protect the environment, but actually are just protecting their equity and the town's color. Woodland's pretty nice actually - nice home town atmosphere.

Happy Renter said...

Good article on home equity extraction.
http://www.sacbee.com/content/homes/re_news/

Gwynster said...

great article in today's bee on the drop in prices YOY.

http://www.sacbee.com/content/news/story/14279230p-15087917c.html

Happy Renter said...

The Bee didn't put that article in their real estate section. Thanks Gwynster. YOY price declines Yayyyy!!!!!

crispy&cole said...

YOYO DECLINES!!!!!

sf jack said...

Great job being done by all the Sacto bubble bloggers...

I'm guessing (but certainly could be wrong) that it could be low by historical standards, but that foreclosure rise is something to behold.

Diggin Deeper said...

Wow, take a look at those reposted blogs of Feb. '07. Sure gives a lot of credence to this blog being one of the best informed out there.

The only factor that will bring this market back is inventory in equilibrium and lower prices that will absorb the overstock. Trouble is that foreclosures, rising home inventories, along with unsold new homes makes it virtually impossible to see a bottom at this point. Why would any buyer chance purchasing an overpriced crib in a sinking market.
I wonder if I'll ever get a chance to buy in Land Park for $135 per sq ft.? I'll bet I get close.

Jeremiah said...

I posted about Ms. Ray last July... she's STILL not sold her home???

http://www.jeremiahjacobs.com/blog/archives/000216.html

Jeremiah said...

Ooops, here's the link....