Hi Cowboy
Welcome to the best new board in the west.
Stupid story if you ask me. It is being told over and over again, everything is motivivated by their greed and disregarding what is happening in the market. Like someone who bought a stock at a low price then rides it up to 100 bucks, but when the stock drops to $80, they have a sell at $85. When the stock drops to $75 they drop their price to $80. This is what I am dealing with sellers right now. It is not what a house will appraise for but what is the competition selling their houses for. Sellers have not had to compete with new home builders for about 3 years as described in the article, they didn't have any inventory to give. Now seller's are competing with Builders that are selling off their inventory at huge discounts and paying $10K for closing costs and offering realtors 5 to 15K bonuses plus 3%. Needless to say existing homes are sitting....If they haven't upgraded their home in 10 to 15 years it is the kiss of death. The market is basically back to normal but with 6 months worth of inventory vs. a normal of 2 months. This will change as the builders are backing off big time and once the inventory is gone, which will be done by the end of the year, existing homes will again have a shot. Builders will begin new subdivision with reduced 10% under this years prices. The build out time will be 5-8 months. I just got the prices and communities for KBHome for 2007. I did read an article from Liz Ann Sonders about how the Housing and the S&P go hand and hand. The chart she has basically goes from 1994 till now and always goes insync. So she is saying look out below in 2007. Her chart now indicates that the $&P would drop to 700 given that everything is equal. But she does discount that.
These people are idiots, I can remember when people felt lucky to break even when they sold.....Now the spoiled younger crowd are acting like victums for only making 20 to 30 grand......believe me when they go to their new location, they will be low balling the price and the shoe will be on the other "foot".....
AI
