Housing Bubble RAPIDLY Deflating

Discussion in 'Economy' started by unlawflcombatnt, Dec 23, 2005.

  1. unlawflcombatnt
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    unlawflcombatnt Guest

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    The Housing Bubble deflation is rapidly accelerating. November New Home sales declined 11.3% from October. This is the largest decline in New Home sales in 12 years. In the West, the bubble is deflating even faster. November New Home sales in the West declined 22% over October.

    Median New Home prices also declined 4.1%. November's median New Home price declined to $225,200 from October's $234,800. This information can be found in the following article by AP writer Martin Crutsinger: NewHomeSalesFall

    Below is a chart from Briefing.com showing the changes over the last 5 months.
    [​IMG]

    This can also be found at: NewHomeSales


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  2. archangel
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    archangel Guest

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    but shouldn't this be in the economy section? :rolleyes:
     
  3. Mr. P
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    Mr. P Senior Member

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    Sales are cyclical for the most part, your point is ?????
    Wait, it’s W, right?
     
  4. Annie
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    Annie Diamond Member

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    I'd like to see the past 3 years, month by month. For some reason, (hint: holidays), I think this is a normally decline period?) Yet, many have been harking on a bubble, so let's see the comparisons. I am too lazy to do. Around here, housing has kept up it's regular pace, not super fast, nor super slow.
     
  5. Said1
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    Have interest rates increased? Tax increases influence this too. I'd think it would be more interesting to see a break down per city. The "bubble" in this city is not shrinking at all - not noticeably anyway. Then there is no market at all in other areas. I have no idea what I'm talking about - I'm in denial. :cry:
     
  6. Annie
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    Annie Diamond Member

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    I believe interest rates have risen a bit. However, would be more interested in how FL is effecting these numbers. It was increasing in huge %'s due to the front of the baby boom. However, the past 2 years have devestated their real estate market. For some reason, people from the North are loathe to move to 'hurricane zone.' On top of that, one has to look at what homeowner's insurance is doing to the South in general. I know that my folks were paying 5 years ago, about $600 a year for homeowner's. My friend, an Allstate agent says that the avg. FL homeowner's policy is close to 3k per year now.

    In my area, there is and has been a standard increase in sales price, but that is only slightly above the rise of salaries. Haven't seen any downticks.
     
  7. Said1
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    Said1 VIP Member

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    That's just it. The variables are numerous. This area got hit hard again with tax increases, combined with high energy costs and a few other things (buy out packages running out for one has people leaving the city in droves) has those in the "know" predicting decreased prices....soon? Who knows, they've been dead off thus far. I say it stands in the suburbs, not here. :huh:

    What are the busiest seasons for home shopping, spring, summer, fall?
     
  8. Said1
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    Few years ago, this town home would have went for about $80k. Today it's listed at 240K. About half a mile from my house. No yard, parking in the back, situated in the middle of about 10 other units.

    [​IMG]
     
  9. Annie
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    Annie Diamond Member

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    I'd say very late winter and spring. I'm considering buying land in FL and moving to AK. The hurricane cycles have been about a 10 year trend.
     
  10. nbdysfu
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    Makes me think: Good.

    In my area, a town of around thirty thousand, one story ranchburgers from the 70s with unfinished basements and 0 acreage are going for the same price, as are the townhomes where three and fifteen years ago they weren't selling for 80k. Real estate values and rent rates have doubled or tripled in general. It's changing the makeup of the town.
    I know a lot of people will be angry if the value of their property goes down, but I think as many if not more, will be happy that they don't have to spend half their paycheck paying rent every month.
     

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