Mike’s Real Estate Show

  When the market was shooting to the stratosphere many said it would not last ( agreed), some gave us the month of year of the dreaded bursting of the bubble (I still don’t belive in the bubble!). Now, on the way to a different market (a “Shifting” market) here are some quotes and thoughts from some folks to who get paid to give their opinions!!

·        “After a stronger-than-expected drop in July, the fairly even sales numbers in August tell us the market is at a more sustainable pace,” Lereah said. “It keeps us on track to see the third highest sales year on record, but we do expect an adjustment in home prices to last several months as we work through a build up in the inventory of homes on the market.” (National Association of Realtors (NAR) News Release, 9-25)
  ·        “Historically, it’s rare for prices to sink very far nationally even when recessions occur. The National Association of Realtors (NAR) predicts a return to stability next year.” (Christian Science Monitor).
 ·        Though the housing numbers appear to be bad, the rate of decline may be slowing. “The fact is that the decline is showing signs of losing momentum, not gaining momentum,” says Bob Brusca of FAO Economics in New York. For example, the decline in the August sales volume was less than economists had been expecting, he says. “We can’t say it’s a turning point, but we can say it’s an inflection point.”  ”Even though prices have fallen, people still have a lot of wealth and equity built up,” Mr. Brusca says. “We would need to see a lot more decline before it materially impacts consumer finances.” (Christian Science Monitor)
        ·        ‘’We’re in for a ride right now,'’ Mr. Lereah (Chief Economist for NAR)said. ‘’This is the first of many price corrections for the remaining months of the year — for at least the next three or four months.'’ (New York Times)
 

              ·                     “We experienced the greatest year-to-year sales decline last month since August 1982, when sales fell 30.4 percent,” said California Association of Realtors (C.A.R.) President Vince Malta. “This is another indication that we’re in the initial stages of a long-anticipated adjustment in the market.

 “Buyers today have a much greater selection of properties from which to choose, while some sellers are still clinging to price expectations that are no longer valid in today’s market,” he said. (C.A.R. News Release, 9-25)
·                     “Although the median price in the state and in several regions hit an all-time record in August, we expect softer prices toward the end of the year,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The median price typically peaks somewhere between June and August before declining toward the end of the year. Some areas of the state already have experienced year-to-year declines for more than two months. This is in stark contrast to the past several years when there were constant double-digit increases. The long-term trend remains to be seen.”“Homes are taking longer to sell than a year ago, with just 29 percent of homes on the market for 30 days or less, compared with 51 percent a year ago,” Appleton-Young said. “The share of homes on the market for 90 days or longer has nearly quadrupled from 6 percent in August 2004 to 22 percent last month. (C.A.R. News Release, 9-25)
·                     Lack of affordability and higher interest rates have contributed to the housing slowdown, said Robert Kleinhenz, C.A.R.’s deputy chief economist. Inventory is higher, but not high enough to result in big price drops everywhere in Southern California. “The disconnect between buyers and sellers created friction in the market and brought sales down to the levels we’re seeing at the present time,” Kleinhenz said.  Median home prices typically plateau or drop during these final off-peak months of the year, Kleinhenz said. (Pasadena Star News)
·                     The conundrum of rising home prices amid steep sales declines can be explained by supply and demand, said Robert Kleinhenz, deputy chief economist at C.A.R. “A good portion of California still has supply issues,” said Kleinhenz. “It’s not as lean as it has been in the past couple of years, but it is not so plentiful as to drive reductions on a consistent basis.” (San Luis Obispo Tribune)
 “Homes are taking longer to sell than a year ago, with just 29 percent of homes on the market for 30 days or less, compared with 51 percent a year ago,” Appleton-Young said. “The share of homes on the market for 90 days or longer has nearly quadrupled from 6 percent in August 2004 to 22 percent last month. (C.A.R. News Release, 9-25)·                     Lack of affordability and higher interest rates have contributed to the housing slowdown, said Robert Kleinhenz, C.A.R.’s deputy chief economist. Inventory is higher, but not high enough to result in big price drops everywhere in Southern California. “The disconnect between buyers and sellers created friction in the market and brought sales down to the levels we’re seeing at the present time,” Kleinhenz said.  Median home prices typically plateau or drop during these final off-peak months of the year, Kleinhenz said. (Pasadena Star News)·                     The conundrum of rising home prices amid steep sales declines can be explained by supply and demand, said Robert Kleinhenz, deputy chief economist at C.A.R. “A good portion of California still has supply issues,” said Kleinhenz. “It’s not as lean as it has been in the past couple of years, but it is not so plentiful as to drive reductions on a consistent basis.” (San Luis Obispo Tribune) 

“Homes are taking longer to sell than a year ago, with just 29 percent of homes on the market for 30 days or less, compared with 51 percent a year ago,” Appleton-Young said. “The share of homes on the market for 90 days or longer has nearly quadrupled from 6 percent in August 2004 to 22 percent last month. (C.A.R. News Release, 9-25)·                     Lack of affordability and higher interest rates have contributed to the housing slowdown, said Robert Kleinhenz, C.A.R.’s deputy chief economist. Inventory is higher, but not high enough to result in big price drops everywhere in Southern California. “The disconnect between buyers and sellers created friction in the market and brought sales down to the levels we’re seeing at the present time,” Kleinhenz said.  Median home prices typically plateau or drop during these final off-peak months of the year, Kleinhenz said. (Pasadena Star News)·                     The conundrum of rising home prices amid steep sales declines can be explained by supply and demand, said Robert Kleinhenz, deputy chief economist at C.A.R. “A good portion of California still has supply issues,” said Kleinhenz. “It’s not as lean as it has been in the past couple of years, but it is not so plentiful as to drive reductions on a consistent basis.” (San Luis Obispo Tribune)