US home sales fall to fresh lows, glut of unsold homes rises

[BlueDogDemocrat]

http://www.breitbart.com/article.php?id=071024152444.1bd2qxem&show_article=1

Anyone trying to sell a house? If so, how long have you been on the market? :smt103

I know folks in new home construction here in Hattiesburg and they said it is not slow, it has come to a complete hault. I hope this isn't signs of a recession.

[CircusRide]

The recession is here my friend. People are offering incentives to buy now. Things like big screen tv's, trips, etc. to help sell homes.
About to be a large number of jobless folks.

[fuzzis]

The recession is here my friend. People are offering incentives to buy now. Things like big screen tv's, trips, etc. to help sell homes.
About to be a large number of jobless folks.

In places with much tighter markets, they've been doing this for quite awhile (2-3 years). I remember one subdivision in Reno offering a new H2 with the purchase of a house.

What I find interesting are the home "auctions" where the builders are slashing prices of unsold homes by as much as 50%. Can you imagine having bought into a subdivision when times were good...only to have the house next door to you sell for 50% of its value? I'd be some kind of pissed.

[wilebill]

I thought the housing market around here was still doing pretty good, but I haven't been keeping up with it.

[Hermione]

I just bought a house and will soon have one ready to sell. However, I'm not out in West West West Hattiesburg, I'm right in town, and I'm not selling a mansion. I have an idea that more modest homes that people can actually afford will continue to sell (somebody correct me if that's wrong) -- after all, those folks moving out of the mansions still gotta LIVE somewhere!

[BlueDogDemocrat]

I thought the housing market around here was still doing pretty good, but I haven't been keeping up with it.

my wife and I were amazed at all the houses for sale in OG...drive around and take a look. We noticed Dennis Pierce has some homes in Dandridge that have been on the market about a year or so.

[chaz]

I just bought a house and will soon have one ready to sell. However, I'm not out in West West West Hattiesburg, I'm right in town, and I'm not selling a mansion. I have an idea that more modest homes that people can actually afford will continue to sell (somebody correct me if that's wrong) -- after all, those folks moving out of the mansions still gotta LIVE somewhere!


True. Houses in the 120 and less should have little problem selling, given everything else in the house is in order.

[Guru]

I heard day before yesterday that this may be a coming recession and a lot depended on the outcome of the NYSE for the day. There was a + for the day, that is just what I noticed for whatever you may want to read into it.

For the regional housing market I heard something most distasteful from someone that I know that works for Country Wide Lending in New Orleans.
They had told me several weeks ago that they were on shakey ground and that the reasoning was that they had waited too late to foreclose on struggling loans.
The thing that I personally found distasteful about this was two-fold:
1- I had knowledge that Country Wide had made mortgages to people that they knew were not capable of supporting financial obligations of the caliber they had undertook. Bare-bone "Snidely Whiplash" economics for loan sharks is to sell something to someone that can't afford it, then foreclose and sell the commodity again; perhaps over and over; thereby compounding exponentially the money they reap off one item.
2- People are so eat up with the "want" virus that they can't see the forrest for the trees. This causes me great frustration both for the people that are seeing personal failure and for the effect that it will exert on the rest of us. They must have grown up sitting on their fat asses on the couch with their hands stuck out and had the attitude of "oh well, if it don't work out we just let it go back". Why I can't have a quarter or half a million dollar house? I'm just as good as everyone else although this is my first or second house and I've only been working for a little while.
I know that not all people are like this but that little "tricky" bit about knowing people who make loans like this and their motives for preying on dumbasses is just sad.
For others who stretched themselves too far what can you say? Sad to say but they just reached a little far beyond their means. I feel very sorry for them, their spouses, their kids and their families who will feel compelled to subject their life savings trying to bail them out.

I'm sure there is some mystical child learning technique no-no that some of the liberals on here will attune us to in an effort to explain why it is terrbile to do it but I think a parents duty is to beat it into kids heads how to be financially successful. We don't want to beat them with a hammer, just show and explain and offer learning examples at every opportunity rather than letting them figure it out by themselves or allow them to spend 90% of their time in other pursuits that render them in no way capable of functioning as independent adults in this even faster and more cruel world that they will see as adults compared to what they may have witnessed while absently noticing things their parents went through trying to provide home, food and shelter to those kids.

If this would come to a recession, no matter how slight, it reminds me of the sentiment after every such occurence I have witnessed while growing up. That is that people scream to the high heavens that they have learned that lesson and will make sure they will never do anything to allow it to happen to them or anyone in their family again.

I don't like financial corrections; they come as a thief in the night, quite suddenly and are painful. The only silver lining is that some of the snow-balling bad economics will also be adjusted.

[Hermione]

True. Houses in the 120 and less should have little problem selling, given everything else in the house is in order.

Hmm, I was hoping you'd say "in the 150 range" -- I just put in a really nice new kitchen.

[CircusRide]

Smaller, lesser priced homes will sell better but even they've slowed. I see properties all over the area and all over the country everyday. Major market areas are taking a beating. I'm seeing $2.5 million homes sell for under $1 million. And condos.......talk about losing your a$$! Anybody that bought into these condos before they were completed are now sitting on properties that have negative equity of ohhhhhh say about $500,000 in many cases.
Mississippi and Hattiesburg aren't that extreme but things have slowed considerably.

[SueScribe]

. . .They must have grown up sitting on their fat asses on the couch with their hands stuck out and had the attitude of "oh well, if it don't work out we just let it go back".

*snicker* " . . let it go back . . " *snicker*

It was such a heartsick Tahoe, and so I took it out to the open road, slapped it on its fender and let it go back, where it wanted to be . . .

:smt118

I'm sure there is some mystical child learning technique no-no that some of the liberals on here will attune us to

. . . but I think a parents duty is to beat it into kids heads how to be financially successful.

Hey. As one Liberal (might as well admit it, someone will say it, anyway) on this board, you won't hear me offering up some "mystical child rearing technique no-no" over your position on fiscal parental duty, BUT there may be a law enforcement / social services type who could question the advisability of beating a child into financial success.

Just to clear the record. :smt105

Sue

[Remington]

I don't know what happened nationwide other than the variable interest rate thingy, but I have an idea what happened around here. For a while there, new houses were being built at an extraordinary rate. I know of some that jumped in and started building houses anywhere they could to get in on the house selling thing. Sort of reminds me of the emu eggs thing where the market was flooded. I was wondering who would buy all of these houses in these new subdivisions that were being built all over hattiesburg.

[Scarlett O'Hara]

There are several houses around me in Lake Serene that have been for sale for awhile.

[CircusRide]

I was about to get into a few flips but because of the market, I'm putting that off for awhile. The Gubberment is about to start dropping rates to try to pick it up but end of year is always slow anyway. I don't see things picking until 09 (if we're lucky).
But, the cost to build we start to drop now......that is, until the rates drop way down.

[Guru]

*snicker* " . . let it go back . . " *snicker*

It was such a heartsick Tahoe, and so I took it out to the open road, slapped it on its fender and let it go back, where it wanted to be . . .

:smt118



Hey. As one Liberal (might as well admit it, someone will say it, anyway) on this board, you won't hear me offering up some "mystical child rearing technique no-no" over your position on fiscal parental duty, BUT there may be a law enforcement / social services type who could question the advisability of beating a child into financial success.

Just to clear the record. :smt105

Sue

* Rolls eyes ... I suppose you missed the point about not beating them with a hammer but instead taking every opportunity to school them in the ways of becoming a financially responsible adult. That kind of goes all against liberal I'm sure.

uh ... just for the record.

[mi_nombre_es]

I'm not surpised by this news, wish I could say I was.

This was a long time coming and for several reasons (some already posted in this post, sry about the repeat):

First off, Country Wide: The largest mortgage company in America was a day away from filing bankrucpty (can't spell sorry). Country wide for the longest has been screwing people royally. They put families in more house than they can afford, putting people in situations with Adjustable Rate Mortgages, where they would HAVE to refinance every 2-3 years (depending on if it is a 24 or 29 month reset for the low intro payment). They also put families who don't have the necessary credit to get a house but let them get one anyways, but with a 5-15 year interest only loan.

Quick Lesson in math: In an interest-only loan, you pay no principal! that means, you pay in all this money and get no equity in your house! you get a 15yr I-only ......you pay out 130K, you get nothing in return. It is the same principal as renting an apartment but it hurts alot more on the pride.


But back to main point. It isn't just Country wide but a TON of crooked mortgage people. They know if credit isn't good, they can put the people in a ballon note to relieve some of the credit risk the banks endure. A ballon note is the most sick, stupid thing I've EVER seen. Seeing how the banks already front load 99.9% of their loans with interest, you get set up on a 30 yr mortgage that is callable (balloning) at year 10. You pay boatloads of interest, very little principal, then after 10 year, you own the remaining balance on your house. It leaves the home owners in a desperate situation: Either Refinance, Foreclose, Sell the house or find the ballon payment. I remeber one time, seeing a family who had 2 ballon mortgages, and after the 3 year ballon period, and the refinace closing costs, they would only pay off about 4K worth of Principal, while putting in around 42K into paying the payments of that mortgage.



Combine that with the ever growing fad of "keeping up with the Jones". People have amassed more debt than they can handle: Whether this is Credit Cards, 90 days same as cash, etc...

If people would just step back, and just realize, they can't just jump into an awesome lifestyle and maintain it. It takes hard work, investing correctly and consistently, and above all discipline, which is something 95% of americans lack.



Combine all that together, you have instant recipe for real estate people throwing themselves out the window.

By the way, this housing crunch is far from over, we will see round 2 and 3 soon. Not hardly any of the ARMs have reset yet to their correct payment with proper addition to principal. Just wait, the fun has only just begun!

[noway]

7 houses are for sale in my neighborhood. 4 on one street.. One just sold and was on the market for about 2 months.. 145,000 estimate.. I have a really nice house across the street for 99,900

[Conveyor Belt]

I'm going to get ahead of the curve and predict a housing BOOM!!!

That's right... People have been saying the home market's slowing down for the past 3 years... at least. At least that's how long I've listened and remembered them talking... right about the time I was getting into the market. So, now, 3 years later, it may have come to fruition...

So, I'm going to start pushing propaganda in the other direction... There's a BOOM on the horizon, a BOOM, I tell ya!

[onlyme]

First off, Country Wide: The largest mortgage company in America was a day away from filing bankrucpty (can't spell sorry). Country wide for the longest has been screwing people royally. They put families in more house than they can afford, putting people in situations with Adjustable Rate Mortgages, where they would HAVE to refinance every 2-3 years (depending on if it is a 24 or 29 month reset for the low intro payment). They also put families who don't have the necessary credit to get a house but let them get one anyways, but with a 5-15 year interest only loan.


I am not in the mortgage business but I think it is unfair to lay all the blame on Countrywide - or any other mortgage company. People are not forced to sign on the dotted line. Purchasing a house is one of the biggest financial transactions one will ever handle and information is key. Everyone knows the dangers of ARMs, interest-only amortizations etc. but if one is willing to take those risks, more power to them. Just don't blame anyone else when the bank forecloses later. ARMs are very good if you know for sure that you will have enough money in a couple of years to pay off the whole mortgage ( inheritance perhaps or a trust fund ) otherwise stick with what you can afford. If one can't affort the mortgage payments of a 30-year fixed loan, one can't afford to buy that house. It's as easy as that.
Personally, I am hoping that the housing market will continue to slide. We will be purchasing our first home in about 18 months and I am rather happy with the way things are going right now - except for the interest we are getting for the down payment we accumulated. The Fed's cut didn't amuse me :smt118

[Hermione]

My son bought a home on the west coast about four years ago. He almost got an ARM, such as he had in his previous house. At the last minute, they decided to go 30-yr fixed. He said, "I just think I'd feel better about it . . ."
I can hear the sigh of relief all the way from here. ;)

[fuzzis]

Buying a house is a very confusing thing. I remember when I was getting ready to buy my condo, I was completely and totally over-whelmed...and I had a GREAT mortgage banker working with me. (one of the ladies I taught with used to be a mortgage broker and sent me to one of her friends) I took my Sner with me to the closing and even though the lady was very patient and explained everything that was happening and what it meant, with my Sner chiming in now and again, I'm still not sure that I fully understood exactly what I was getting myself into.

Not everyone in this country *needs* to be a home owner, although there is great pressure to buy into that piece of the American Dream (I recall speeches by the President touting that fact that so many Americans were now able to fully participate in the American Dream).

[SueScribe]

Not everyone in this country *needs* to be a home owner, although there is great pressure to buy into that piece of the American Dream (I recall speeches by the President touting that fact that so many Americans were now able to fully participate

in the American Dream).

Thing is? He thinks we're in a dream, and for some, it's a been a nightmare.

(He was square-on the "fully participate" part, though.)

[threekidspa]

Thing is? He thinks we're in a dream, and for some, it's a been a nightmare.

(He was square-on the "fully participate" part, though.)

I agree...."fully participate" == in debt up to our eyeballs

[Fish-Bait]

True. Houses in the 120 and less should have little problem selling, given everything else in the house is in order.

I listed my house with a realtor for 102,900. We had a contract for asking price in 5 days from the time the sign went up. A friend about 2 miles from me at the time (in a subdivision) had his for sale at 200k, it took all of 8 months and about a 15k drop in price to sell it.:ohnoes: I think I sold at the right time. Just before all this bs mortgage crap came about. I got lucky. I bought my house with ZERO down and had good enough credit to pull a second mortgage and save me $ on the PMI. I turned it with a 24% profit. Now I will have equity in my new home.....I am just waitin' for the carpentars to get hungry. Then I am gonna raise hell while it's gettin' built. Can't have me no slackers.....:evil:

[bpitt]

No slackers....and no tractors.......

[SueScribe]

....I am just waitin' for the carpentars to get hungry. Then I am gonna raise hell while it's gettin' built. Can't have me no slackers.....:evil:

Can you have you some illegal nail drivers? The carpenters - well, the master carpenter - knows he ain't gonna get hungry. You, on the other hand, might get a little nervous when timber prices fail to fall.

[Fish-Bait]

Can you have you some illegal nail drivers? The carpenters - well, the master carpenter - knows he ain't gonna get hungry. You, on the other hand, might get a little nervous when timber prices fail to fall.

It does help that I design and build sawmills......I think I got it covered.:-D

[Conveyor Belt]

I don't think anyone knows whats in all those documents you sign in the closing. I think our closing took about 3 hours, and I think I had a great real estate agent working with me on the buy. I couldn't have done it without her... okay, I could have, but then I'd have been up a creek, y'know?

I started to go with countrywide in the beginning, but then the agent lied to me and held back information I felt was critical, so I cut them off and went with someone local. Better interest rate, no ARM's, and now countrywide owns the loan. funny.

[threekidspa]

I don't think a realtor is the best place to get advice at closing. They usually only know what the papers are, but not what they mean to you. AND, they don't get paid unless a deal is made (even a buyers agent), so its not in their best interest to lay things out for you in black & white plain english if they think it might make you back out of the deal.

I used to think, as we've moved over the years, that I could get better at picking realtors. But you can't. They won't offer information unless you ask, and for every question you do ask, there are at least a dozen others that you don't ask because you didn't know you should. The only safe way to play it is to pick your own closing attourney (you have the right to do it). They get paid regardless of whether or not you sign the deal, they know the law, and HAVE to work in your best interest.

Now that I've said this, am I OT? Sorry if I am.....

[Conveyor Belt]

I'm sure there are many unscrupulous realtors out there, but I believe that mine was not one of those. She helped point us in the direction to find a great mortage lender, and they, in turn, helped us with the attorney, etc. It was a great deal all around. YMMV.

[chaz]

Hmm, I was hoping you'd say "in the 150 range" -- I just put in a really nice new kitchen.

There may be hope. Check the MLS to see what things are listed for around your house. That's your competition.

The link is http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+pubweb/index.html&no_html_header=true&entity=hattiesburg

[bpitt]

Remember, all real estate agents are not Realtors. Realtors is an organization, of which it's members must adhere to a strict code of ethics.

[chaz]

Remember, all real estate agents are not Realtors. Realtors is an organization, of which it's members must adhere to a strict code of ethics.

A code of ethics that is almost never enforced. It's one of the biggest marketing coups of all time. Along with DeBeers, Realtors are especially good at way overcharging for (otherwise useless) goods/services.

[Hermione]

Am I the only person who thinks 6% is a LOT? It can make a difference in getting anything out of a house -- shouldn't the commission be graduated (5% on the first $100K, 3% on the next, something like that?)

[wilebill]

A code of ethics that is almost never enforced. It's one of the biggest marketing coups of all time. Along with DeBeers, Realtors are especially good at way overcharging for (otherwise useless) goods/services.Occasionally I have to deal with realtors in a way that most people don't, and you're right, that code of ethics is laughable. One guy I've dealt with I wouldn't let him handle a Lincoln Log house, but I've seen people here sing his praises. Not all of them are that way, but enough that I've seen that I rank Realtor right up there in the top 10 most unethical professions.

[BlueDogDemocrat]

Am I the only person who thinks 6% is a LOT? It can make a difference in getting anything out of a house -- shouldn't the commission be graduated (5% on the first $100K, 3% on the next, something like that?)

I've always thought the blanket 6% was WAY to high....especially when your home sells itself and the realtor shows it once or twice and draws up a couple contracts...I paid my last realtor only 4.5%, if you have a hot property some will go as low as 3% if another realtor isn't involved.

[chaz]

There are flat fee brokerages and now services that will just list your house on the MLS and let the agents/homeshoppers contact you directly.

The idea that selling a house is some complicated ordeal that requires an "expert" real estate agent is just silly. There are enough books and stuff online that anyone who wants to sell themselves can do it.

I should probably make a MS specific site with forms/laws etc.

[BlueDogDemocrat]

I should probably make a MS specific site with forms/laws etc.

There is an outfit in flowood, ms that does just that...uslegalforms.com (http://uslegalforms.com). They create state specific forms and contracts for individuals that wish to contract without the assistance of a realtor.

[countrygirl]

Hmmm...I have a brother-in-law in the real estate business, and I think if I ever decide to sell my house, I might have a problem with hubby...I think brother-in-law might want to price it low so that it will sell quickly and he can make his percentage. If you sell a $200,000 home, 6% is somewhere around $11,000. I may want to research and see how I can keep that $11,000

[ComputerDude]

On my route to work in the morning I pass a brand new home that's been sitting empty for several months now. It's an unusual looking home, very small on what is sort of a corner lot. The backyard is not at all level so there's really just the deck for kids to play on. There's a VERY busy street directly behind the home that looks directly into the backyard. About a month ago I noticed a "$5000.00 buyer incentive" sign added to the realtor's sign. Still empty.
Also, they are still steadily adding new homes to the part of Eastabuchie that's closest to Highway 11. Big giant beautiful homes, one finished two or three months ago that's still sitting, empty. With a brand new one going up right by it.

[Conveyor Belt]

New home sales were up in Sept. up 4% or something like that when experts were predicting a -2% decline.

[ComputerDude]

New home sales were up in Sept. up 4% or something like that when experts were predicting a -2% decline.Nationally or locally?

[Fish-Bait]

On my route to work in the morning I pass a brand new home that's been sitting empty for several months now. It's an unusual looking home, very small on what is sort of a corner lot. The backyard is not at all level so there's really just the deck for kids to play on. There's a VERY busy street directly behind the home that looks directly into the backyard. About a month ago I noticed a "$5000.00 buyer incentive" sign added to the realtor's sign. Still empty.
Also, they are still steadily adding new homes to the part of Eastabuchie that's closest to Highway 11. Big giant beautiful homes, one finished two or three months ago that's still sitting, empty. With a brand new one going up right by it.

I know which home you are talkin' about. They need to fill in the side of the yard and do a little landscapin'......

The brand new one on Easta'boochie' road if bein' built by a friend of mine. He just sold his other home and didn't live too far from us.

[ComputerDude]

I know which home you are talkin' about. They need to fill in the side of the yard and do a little landscapin'......

The brand new one on Easta'boochie' road if bein' built by a friend of mine. He just sold his other home and didn't live too far from us.

The one that's just framing right now? Good that somebody is building it with the intent to move in, instead of letting it sit empty. The other house on that road that was recently finished is incredible. I wish I had the money to buy it. My house in California probably cost more which frustrates me to know end. I see a house for $200.000 and think to myself "Damn, that's cheap".
Then I remember it's not in California. :laugh::laugh:

And yeah, the weird lookin' house is on Jeff Coats Rd. (I think that's the roads name) It just doesn't have a "home" feel to it from the outside.

[Fish-Bait]

The one that's just framing right now? Good that somebody is building it with the intent to move in, instead of letting it sit empty. The other house on that road that was recently finished is incredible. I wish I had the money to buy it. My house in California probably cost more which frustrates me to know end. I see a house for $200.000 and think to myself "Damn, that's cheap".
Then I remember it's not in California. :laugh::laugh:

And yeah, the weird lookin' house is on Jeff Coats Rd. (I think that's the roads name) It just doesn't have a "home" feel to it from the outside.

A customer of ours just bought a 1200 sq. ft home, with 800 sq. ft basement right outside of Milwaukee, WI......489,000!!!! Holy Smokes!!!!

244.50 a square ft.!!!! Jeepers Creeepers!!!:smt009

[CircusRide]

It's nothing to see 600 Sq. ft. homes in Miami or Seattle go for $350,000. Just plain block homes or wood frame homes- nothing fancy. Not on the beach or anything. Just the average little home that would sell for $50,000 here.

[ComputerDude]

A customer of ours just bought a 1200 sq. ft home, with 800 sq. ft basement right outside of Milwaukee, WI......489,000!!!! Holy Smokes!!!!

244.50 a square ft.!!!! Jeepers Creeepers!!!:smt009I had no idea property was that expensive in Milwaukee.

[Conveyor Belt]

Nationally or locally?

http://news.aol.com/story/_a/new-home-sales-up-by-48-percent/n20071025102209990013

[Fish-Bait]

I had no idea property was that expensive in Milwaukee.
He bought out in the burbs...not sure where. I only know that it is right outside though.