Monday, June 18, 2007

'There’s Really No Reason For People To Not Be Buying A Home'

From the Appeal-Democrat:

News about the housing-market downturn and the market’s future is of little relief to struggling sellers – but may bring some encouragement to bargain-hunting homebuyers.

In Yuba and Sutter counties, the median home price for a single-family home had climbed from $99,000 in January 2000 to $300,750 in May 2006 before dropping to $268,000 in January, Realtor Lloyd Leighton said.
...
The number of homes on the market is increasing, and Leighton said spring sales were “lackluster.” “My belief is the worst is behind us, but it’s still likely we will see some declines in price,” he said.
...
David Burrow, president-elect of the Sutter-Yuba Association of Realtors [said]...affordability and the perils of aggressive home financing are major issues...The market’s downturn is not abnormal, but intense national and regional attention makes it look that way, he said. “It puts fear in the mind of the buyer,” said Burrow. “They don’t want to be in the position of their friends who bought a home two years ago.”
...
“There’s really no reason for people to not be buying a home,” he said. “It’s a buyer’s market.”
From the Auburn Journal:
Home prices are on the decline while the number of homes listed on the market in Placer County continues to rise. In the home sales report for May issued by the Placer County Association of Realtors on Friday, single-family homes are becoming more available.
...
For the overall county in the month of May, 2,720 homes were part of the total listing inventory, up from 2,507 in April. The homes in May had a median price of $410,000, according to the report, this is a 15.4 percent decrease from $484,500 in May 2006.

8 comments:

rocklin renter said...

"There’s really no reason for people to not be buying a home,"

Preceded by:

"My belief is the worst is behind us, but it’s still likely we will see some declines in price"

Say what now?

No reason to not buy and the worst is behind us, but it's still likely we will see some declines. HMMMMMMM Methinks that might be a damn good reason not to buy and a pretty good indicator that the "worst" is not yet behind us.

Where do they get these kooks?

Gwynster said...

Prices went from 99k to 300K. They can come right back to 140k and then the old checkbook will come out.

I'll "reward" someone with 40k over 6 yrs of hard work (like making crappy upgrades) but I'll be damned if I'll hand someone 200K for being the first idiot in line.

smf said...

"In Yuba and Sutter counties, the median home price for a single-family home had climbed from $99,000 in January 2000 to $300,750 in May 2006 before dropping to $268,000 in January"

There seems to be quite a number of reasons why people should wait, just by looking at the run-up in price.

Again, these are Chevy houses with Ferrari prices, and most people could not afford them in the first place, regardless of what their mortgage brokers said at the time.

Diggin Deeper said...

The broad and secular markets I've followed over the years have very simple common denominators that generally tell one when to buy and when to sell.

1. Bull markets tend to over shoot fair market value. Raging bull markets take this tendancy to extreme over value.

2. Bear markets tend to fall way beyond the fair value mark. Raging Bear markets make normal bear markets look like buying opportunities.

3. Buy and sell only in bull markets.

4. Stay away from bear markets

As for real estate, read #4 above...it appears to be a raging bear, imho. Its not quite hated enough yet. When it looks like all hope is lost, there's carnage all around, it'll be a good time to buy...Until then enjoy the show...

paranoid renter said...

yay...it's finally happening...wish it could be made to happen faster; then I wouldn't have to spend so much time reading crash blogs!

Perfect Storm said...

“There’s really no reason for people to not be buying a home,” he said. “It’s a buyer’s market.”

When will these so called professionals get it through their thick skull that there isn't any buyers, nor will there be.

Housing/Mortage Doom 2007

Were right on track for a 50% decline by 2009.

David said...

Auburn Journal link:

http://www.auburnjournal.com/articles/2007/06/17/news/top_stories/03homes17.txt

Those realtors spreading nonsense.

Lander said...

Thanks, I fixed the link.