New home sales plummet

12/28/2007:

hoboken-housing-bubble.jpgWe all know the housing market is on shaky ground right now, with even some of our well-known developers showing signs of trouble, such as Metro Homes & K. Hovnanian – Maybe THIS is why none of the “predominant” developers of the area didn’t care to bid on the Muni-Garage proposal? Hmmm?

The Associated Press reported that sales of new homes dipped in November to their lowest level in more than a dozen years, proof that there are serious issues in the housing sector.

New home sales fell by 9 percent from October to November to a seasonally adjusted rate of 647,000, the Commerce Department reported. The last time it was near this level was in April 1995 at 621,000 units.

The economists weren’t expecting such a weak sales pace in November (shows you how much they know!) They predicted a drop of slightly under 2 percent (or a pace of 715,000.)

$239,100 was the median sales price of a new home in November, but only dropped 0.4 percent from a year ago.

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70 Comments on "New home sales plummet"

honcho
Member
honcho

In this market I’m sure any bid between 10%-5% under the asking price stands a good chance of getting hit or at least countered.

Supply is increasing, unemployment increasing on Wall Street.

There will soon be people laid off who have to sell!

Hang in there…adn don’t pay up!!!!

Buyers are in control of this market!!!!!!

Chop!Chop!
:mrgreen:

Tiger
Member
Tiger

Renting here and looking to buy my first condo. Planning to spend $350 – $375K for a 1 bedroom. Been looking for the past 4 months. Yes, there are properties which are sold in less than a few days, but a lot of properties have been on the market for quite sometime, and yet sellers are still stubborn and would not accept anything below 2% of asking price (since the market is operating at 98% capacity).

For example, there is this unit I WAS eyeing for the past 3 months. It was listed at 410K and only recently dropped to (get this) 399,999. Apparently a 375 K is considered ‘low-ball’ when my agent talked to his agent. WHATEVER! In this long wait I anyway researched the property and found out a few less-than-thrilling facts about the school-converted-to-condos. So, I passed.

Point is, it is all about pricing. I am not saying a 400K property should sell for 300K, but COME ON!!! 😡

rag246
Member
rag246

[quote comment=”59837″]Rentals will be fine as long as jobs are around[/quote]

Three words: Citi, Merrill, Bear.

RUHOBO
Member
RUHOBO

BRI777….it’s not that they are less Savvy but given how weak the dollar is everything looks cheap to them. Rentals will be fine as long as jobs are around. I would like to share a thing I saw on the today show. They ask the lady from Corcoran about how to sell a house and she said the following:
1) price below the market
2) the first offer is always the best
3) higher a realtor

LOL…….these sound like tips for brokers how to make a quick buck. Not sure how any of this helps the seller? So, I list 10k below the market. The first bid is another 10k below that. So, I sell at 20k below the market price and another 6% to the broker. The only winner here is the broker.

bri777
Member
bri777

That Jersey Journal article is pretty amusing.

I love the “foreigners” will save us argument. I’ve no doubt there’ll be foreign money purchasing local real estate. What amazes me is the belief that these foreigners would be any less savvy a buyer than somebody local. If a local buyer anticipates housing prices are going to drop 10-30% they will bid accordingly. For some reason the NAR seems to think a foreigner wouldn’t do the same thing. They’ll just recklessly throw their money around because the dollar devalued. Look at the sovereign wealth fund purchases of late. They haven’t spent a nickel unless it was a sweetheart deal on their terms. Why do these people think they are going to bid at 2005 prices on a condo/apartment?

I thought that Trump thing was sold-out by now. Still 20% left doesn’t sound too good. I also would have liked them to have asked Geibel the scoop on Metro Stop.

Finally, with more rental units coming on-line there’s going to be a downward pressure on rental prices due to the oversupply of rental units. The end result is housing prices (condo/coop/rental) in the NYC area are going to continue to deflate. Which for most people will not be such a big deal. Reality is if you didn’t buy at the peak, have an exotic mortgage or use your home like an ATM you should be fine.

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