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Things are better here
With prices falling sharply over last year, home sales in Ocean Shores have been fairly brisk. Not so for the rest of the nation, according to the big news of the day:
WASHINGTON (Reuters) – Sales of previously owned U.S. homes took a record drop in July to their lowest pace in 15 years, suggesting further loss of momentum in the economic recovery.
As the National Association of Realtors issued the report, Chicago Federal Reserve President Charles Evans warned that the risk of adouble-dip recession was higher than six months ago although he did not think output would contract, describing the recovery as ongoing but modest.
Existing home sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest since May 1995. June’s sales pace was revised down to a 5.26 million-unit pace from a previously reported 5.37 million.
The housing market has been mired in weakness following the end of a homebuyer tax credit in April, which pulled forward sales and building activity.
With home sales tumbling, the inventory of previously owned homes for sale rose 2.5 percent to 3.98 million units from June, representing a supply of 12.5 months — the highest since at least 1999 and up from June’s 8.9 months.
The jump in the supply of homes was almost double the six to seven months’ supply considered to be a healthy level.
Last month foreclosed properties accounted for 22 percent of sales while short sales made up 10 percent. First-time buyers accounted for 38 percent of transactions, the lowest in 12 months.
The national median home price rose 0.7 percent from July last year to $182,600.
We were told by the bank that valuations were running much closer to assessed value (this was in March) as opposed to when we purchased our land in late 2008 at which time it apraised at more than 33% higher than the assessed value. So one of the problems will be financing if people are hoping for a high apraisal. We also watch Windemere’s web site for listings and have been unsurprised by the increase in listings since this spring…I’m sure that the upcoming lid no doubt has something to do with it!
Sales have been at about 30% less than the County Assessor’s valuation in 2008. That used 2007 values. You can put a house on the market for any price. How urgent your need to sell determines your elasticity in the price you are willing to take. Vacation areas are notorious in valuing things high in hopes that an unaware or uneducated consumer will buy the house.
When people put their house on the market for $30k less than the ASSESSED value, how can anyone compete with that? Our house is going back up tomorrow, but I’ll be damned if I’ll sell for less than assessed – that’s crazy.
Is that what the Daily World article said?? Foreclosures or real sales here?? Every week we see one or two foreclosures listed. This winter should be interesting to watch. Wait until people get the LID bills. I wonder how many lots NRPI sold will end up on the list.