Housing Sales Fall in 40 States; Largest percentage of price declines since 1979

[MrBrau1]

http://biz.yahoo.com/ap/070215/housing_slump.html?.v=7

but the economy is great.

Isn't it?

 

[LyricalDrug]

Wow, that is crazy.

Btw, have you guys seen this site? www.zillow.com. You can plug in any address and get an estimate on a house's value. Pretty trippy...

 

[ntalwar]

It's nice to see the speculative housing bubble deflate a bit.
The market was getting overcrowded with investors.

 

[Liesje]

It's been impossible to sell a house here for a year or so. It's a buyer's market, but Michigan has the 49th worst state economy so even saving tens of thousands, people still aren't buying b/c we don't have jobs or jobs that pay. I know so many people trying to get out and move somewhere with better (or existent) job opportunities, but they can't sell their houses.

 

[ntalwar]

In areas with hotter economies, like Northern Va., the prices were getting out of control at the peak. One bedroom condos were going for up to 450-500k. Sales have also slowed in these areas, but a lot of the owners have turned to renting out their properties because they expect the market to turn around soon.

 

[financeguy]

I'm guardedly optimistic. I foresee a slowdown, but not a massive slump, as some are predicting.

 

[MrBrau1]

I dunno. Every day you read about another subprime lender shutting it's doors.

The American consumer is broke. They just don't know it yet.

 

[Vincent Vega]

After this massive buying it's probably a hang-over.

Or the bill arrived at many households.

 

[Dreadsox]

There are many things that have happened to slow things down and call prices to fall.

Incredibly low interest rates years ago inflated prices. People could afford to spend more because of the low rates.

Rates are on the rise.

People cannot afford more house with high interest rates. Prices come down.

I feel badly for people who refinanced to take the equity in their homes to pay of old debts. They are now holding a mortgage that they may have to hold for years because they owe more than their house is valued.

 

[ntalwar]

^ That and the tightening of lending standards which is finally taking place. A lot of those subprime borrowers probably should not have been granted loans in the first place.

 

[anitram]

There are tons of people living house-poor in McMansions because of the low interest rates. For those who are making some good coin, a lot of these will be going on the market and there will be $ to be made.

It was obvious that when interest rates went up and the market started crashing, a lot of people who bought houses beyond their means in the last 5 or so years would run into trouble.

 

[corianderstem]

Maybe someday I'll be able to afford a place in Seattle without having to move two hours out of town.

 

[coemgen]

This is good news as my wife and I are looking to buy fairly soon.