Home Auctions Hit The Northeast Again
It's nothing short of amazing that the real estate decline in the Northeast is playing out almost identically to the late 80's boom and early 90's crash.
To draw a parallel with the last crash, we seem to be around 1989-1990 at this point. We're hitting a period of uncertainty shortly after the top of the market. Sales are slowing, prices are falling (albeit slowly), and no one has a clear picture of the direction of the market.
Rewind to late 1989...
In a Cooling Housing Market, Real Estate Auctions Are Hot
December 3, 1989, Sunday
By CHARLOTTE LIBOV (NYT); Connecticut Weekly Desk
AUCTIONING off property, a sales method common in foreclosures, is being used more and more to market houses and condominiums in Connecticut as the demand for real estate continues to slacken.
And to 1990...
Residential Auctions More Popular
By JAY ROMANO
Published: October 7, 1990
RESIDENTIAL real-estate auctions, traditionally perceived as the last resort of desperate developers, are fast becoming an acceptable, sometimes preferable sales strategy, real-estate experts say.
In the midst of a real-estate slump that has left the state blanketed with for-sale signs, anxious sellers are more quickly turning to the auction block to lure cautious buyers to their properties. And according to auctioneers, real-estate agents, developers and the buyers themselves, the strategy is working better than anyone expected.
Now fast forward to today, March 14th, 2006...
Sellers literally put homes on the block
By Kimberly Blanton, Globe Staff
Published: March 14, 2006
Amid softening market, auctions growing more popular, despite risks
A growing number of homeowners and builders, unable to sell homes or condominiums the traditional way, through an agent, are turning to Sotheby's-style auctions like this 26-property sale last month in Newton. With the housing market softening in US cities from Boston to Naples, Fla., to Utah ski towns, the National Auctioneers Association reported that residential properties valued at $14.2 billion sold in 2005 in live auctions, a 24 percent increase over 2003 sales.
Auction houses said a growing surplus of homes on the market nationwide is expected to drive more owners to auctions in the future. Maine-based J.J. Manning, which typically holds one-house auctions, said this was its first auction of properties owned by multiple owners since the early 1990s downturn. The firm plans more this year.
Caveat Emptor,
Grim
To draw a parallel with the last crash, we seem to be around 1989-1990 at this point. We're hitting a period of uncertainty shortly after the top of the market. Sales are slowing, prices are falling (albeit slowly), and no one has a clear picture of the direction of the market.
Rewind to late 1989...
In a Cooling Housing Market, Real Estate Auctions Are Hot
December 3, 1989, Sunday
By CHARLOTTE LIBOV (NYT); Connecticut Weekly Desk
AUCTIONING off property, a sales method common in foreclosures, is being used more and more to market houses and condominiums in Connecticut as the demand for real estate continues to slacken.
And to 1990...
Residential Auctions More Popular
By JAY ROMANO
Published: October 7, 1990
RESIDENTIAL real-estate auctions, traditionally perceived as the last resort of desperate developers, are fast becoming an acceptable, sometimes preferable sales strategy, real-estate experts say.
In the midst of a real-estate slump that has left the state blanketed with for-sale signs, anxious sellers are more quickly turning to the auction block to lure cautious buyers to their properties. And according to auctioneers, real-estate agents, developers and the buyers themselves, the strategy is working better than anyone expected.
Now fast forward to today, March 14th, 2006...
Sellers literally put homes on the block
By Kimberly Blanton, Globe Staff
Published: March 14, 2006
Amid softening market, auctions growing more popular, despite risks
A growing number of homeowners and builders, unable to sell homes or condominiums the traditional way, through an agent, are turning to Sotheby's-style auctions like this 26-property sale last month in Newton. With the housing market softening in US cities from Boston to Naples, Fla., to Utah ski towns, the National Auctioneers Association reported that residential properties valued at $14.2 billion sold in 2005 in live auctions, a 24 percent increase over 2003 sales.
Auction houses said a growing surplus of homes on the market nationwide is expected to drive more owners to auctions in the future. Maine-based J.J. Manning, which typically holds one-house auctions, said this was its first auction of properties owned by multiple owners since the early 1990s downturn. The firm plans more this year.
Caveat Emptor,
Grim
9 Comments:
I've posted this at the HousingBubble2 also...
It's too funny…
3/12 in the Union Leader:
Experts in NH say there was no real estate bubble
“Delay said another indicator — foreclosure rates — also shows a vibrant market in New Hampshire.
New Hampshire has the third-lowest rate of foreclosures per household, just behind Rhode Island and Massachusetts.
In Georgia, there was one foreclosure for every 422 households in January.
During that month, there was one foreclosure for every 42,000 households in New Hampshire, he said. ”
3/13 in the Portsmouth Herald:
Officials: Home loan foreclosures on rise
“A growing number of homeowners in New Hampshire are being forced out of their homes by foreclosure.
Foreclosure filings in the state jumped from 188 in February to 263 in March.
In Strafford County, there were 19 foreclosures in January and February, compared to 40 during all of 2005.”
Grim:
You have the right idea. You put in the effort with the NY Times search you compiled. Now you have a blueprint as to how this will unfold. Use your historical account to predict what this year will look like.
Every correct call builds you street cred....
This juxtaposition is great:
"Sheldon Good & Co., a national auctioneer in Chicago, also reports doing more auctions, including more on behalf of developers selling the unsold units in large hotel-condo projects, particularly in resort areas.
''We think there's a very high likelihood that trend is going to rise based on overbuilding in Boston, New York, Chicago, Houston, Orlando, and Jacksonville," said Steve Good, chief executive. ''The slowdown is just beginning."
David Wluka, president of the Massachusetts Association of Realtors, said he doesn't see the auction trend taking off, however, in the Boston area."
We tried to sell our house at auction last month. 15 people showed at the open house, 2 registered to bid, only one bid at 50% below the house appraised value. Even giving the house away, people aren't buying!
[URL=http://realty-reality.blogspot.com/]Realty-Reality[/URL]
Try to be kind...
For what it's worth--and the unprecedented mismatch between median house price and median income aside--anyone who bought a well built, well located property in NNJ in 1989/1990-- especially in places convenient to NYC like Hoboken, or with good schools like Millburn--has seen a remarkable return on their investment. I have no idea what that means for the future. But if you are making a comparison between today and that moment in time, its an important consideration.
rentinginnj,
What I'm wondering is what they base their decline estimates on. First they say how grossly overvalued the area is, but then continue with an estimated drop of 1-2%?
grim
Anyone have an opinion about South Jersy real estate values? I assume we are part of the Philadelphia region.
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