Monday, September 25, 2006

California Sales Drop Largest Since 1982, Sacramento Leads the Way

From the C.A.R. Press Release:

Home sales decreased 30.1 percent in August in California compared with the same period a year ago, while the median price of an existing home increased 1.6 percent, the California Association of Realtors (C.A.R.) reported today.

"We experienced the greatest year-to-year sales decline last month since August 1982, when sales fell 30.4 percent," said C.A.R. President Vince Malta. "This is another indication that we’re in the initial stages of a long-anticipated adjustment in the market."
The Sacramento region suffered the greatest year-over-year sales decline in the state, dropping 42.2%. C.A.R. also reported that the median price of an existing home in the Sacramento region fell 4.1% (y-o-y) in August.

19 comments:

rocklin renter said...

Here comes that soft landing!

marinite said...

a long-anticipated adjustment

Anticipated by who? Bloggers that's who. Not the REIC, at least not publically.

Anonymous said...

Wow, a 42% decline in sales. A 42% decline in commissions. A 42% decline in new loan fees. A 42% ....well, batten down the hatches.

One Realtor put in his adds this weekend..."Don't believe what you read, the market is HOT!"

What a sad statement. I pity the clients and say, "I don't believe what you wrote, because the market is NOT."

Anonymous said...

well, if you take enough of you and put you in a room guessing, someone will be right!

Anonymous said...

buyers market,liars market,hey,close enough for government work.

JR said...

Anon 3:25....
"...well, if you take enough of you and put you in a room guessing, someone will be right!..."

Yes, and a team of monkeys working around the clock will eventually write "War and Peace".

But that has nothing to do with the scientific analysis of an overpriced, oversold housing market which is clearly going thru the initial stages of a 40-50% price correction. The monkeys in this case are the GF's who bought without really paying attention to the most important fundamental question...."Is this home really worth the cost I am being asked to pay?"

chuck said...

"adjustment in the market"....

that must be that there sophisticated Realtor talk for effing collapse of the market...

"The Titanic has suffered some minor damage and there will be a slight adjustment and realignment of the boat"

Remember,

"Women and Children first in the Lifeboats"

Just true stuff said...

Lander,

I just heard a rumor that JTS, who built the Estates at Lincoln Crossing and other high end developments is filing lawsuits against any homeowners that cancelled sales and walked away from their contracts. Does anybody have access to a legal search engine, to see if they are filing a bunch of lawsuits against their buyers?

They must be trying to recover the money they lost at the old contract prices at the top of the market. I think this is the group with the radio adds stating you could buy homes "valued" at $1,000,000, now starting at $500,000. I would hate to be the FBs that had to pay JTS the $500,000 they are "losing" and then NOT EVEN GET THE HOME. These guys are redefining the meaning of FBs.

I have never seen what appears to be such a low life organization as JTS. HUNDREDS of lives ruined. I'll bet the buyers all rue the day they ever heard of JTS.

SCProfessor said...

Unlike the previous market downturns, today because of the Internet and blogs like this, the public is better informed than in the past. I think that is a key cause for what will be a more rapid decline in market prices.

Karl Marx Brothers said...

The FOR SALE signs around here in Citrus Heights north of the mall have been up for so long vandals tear em down every few days.
There is one here on Woodmore Oaks ( off Sunrise Blvd ) that takes a weekly beating.
The eye-hook holding it up has been replaced / redrilled many times.
Modern day version of mail box bashing I suppose.

Karl Marx Brothers

Anonymous said...

Sign vandals? Yeah, they're called the competition. There are numerous stories going around about neighbors taking down other neighbors' for sale signs. The sellers are getting desperate. One case where a seller was so desperate, he undercut his 2 neighbors by $30K and when they found out, they tore up his sign!

Anonymous said...

re:

JTS, who built the Estates at Lincoln Crossing and other high end developments is filing lawsuits against any homeowners that cancelled sales and walked away from their contracts.

JTS can only retain the deposit as liquidated damages. They can't sue the buyers that bailed.

Anonymous said...

But wait according to the Stockton Record, the real news is the 13% rise in home sales from July to August not the 39% YOY decline. At least that is what today's headline say -- "Valley existing-home sales rise."

Once again, the Record gives us journalism at it best.

Anonymous said...

Anon, 4:18 PM,

That deposit scenario is the way it formerly was. Now, if the builder can prove damages, I believe they can come after the buyer. It is a questionable and unproven tactic, but desperate times may require desperate measures.

I recently heard from a good source that these lawsuits have been filed and it is "water cooler talk" in the legal community.

Someone must have a search engine for legal filings. Plug in JTS, JTS Communities, Jack Sweigert, 401 Watt Ave, Sacramento 95864, Estates at Lincoln Crossing, etc. and see what comes up with them as a plaintif. It may be interesting

Anonymous said...

Folks, large subdivision home builders don't get the nice consumer protection of deposits they take like you might. The DRE (Department of Real Estate) usually has them write a "no damages" refund clause in their contracts before they approve the subdivision.

WHen the buyer walks, they get their deposit money back.

Regarding the Stockton Record, I've also have seen areas in Sac $850-1.4 mil pick up in the past 4-5 weeks.

Anonymous said...

Anon says..."areas in Sac $850-1.4 mil pick up in the past 4-5 weeks."

Yes, I have seen two homes, originally priced at $1,600,000 and $1,300,000 both reduced to $999,000 "asking". One sold for $980,000, and the other is "pending". So, yes a 30-40% haircut might get you a closed deal.

Anonymous said...

JTS will piss their reputation straight into the toilet if they sue the buyers that backed out.

The contracts contain an express liquidated damages clause limiting seller recourse to the amount of hard money deposit in escrow.

JTS will become known as JUST TO SUE!

Anonymous said...

I wish I could buy puts on JTS

Anonymous said...

In So Cal in the early 90's another builder tried to sue borrowers. It turned out it was because they were desparate. Within 1 year they filed for bankruptcy.