Homebuilder Sentiment Falls
From Reuters:
US homebuilder sentiment sinks in May - NAHB
"U.S. homebuilder sentiment slumped in May to its lowest since mid-1995 on rising mortgage rates, declining affordability and the retreat of speculators, the National Association of Home Builders said on Monday."
"The NAHB/Wells Fargo Housing Market index fell six points to 45 in May from an upwardly revised 51 in April, the group said."
"Economists polled by Reuters had predicted the index would drop to 49, which would have been the index's lowest level since a downturn immediately after the September 11, 2001 attacks on the World Trade Center and Pentagon."
""Based on historical experience, particularly the 1994-1995 episode, the pattern of movement in the HMI is not inconsistent with the orderly cooling-down process we're projecting for home sales and single-family housing starts in 2006," NAHB chief economist David Seiders said in a statement."
"The group predicts new home sales will slide 12 percent this year from record sales last year."
US homebuilder sentiment sinks in May - NAHB
"U.S. homebuilder sentiment slumped in May to its lowest since mid-1995 on rising mortgage rates, declining affordability and the retreat of speculators, the National Association of Home Builders said on Monday."
"The NAHB/Wells Fargo Housing Market index fell six points to 45 in May from an upwardly revised 51 in April, the group said."
"Economists polled by Reuters had predicted the index would drop to 49, which would have been the index's lowest level since a downturn immediately after the September 11, 2001 attacks on the World Trade Center and Pentagon."
""Based on historical experience, particularly the 1994-1995 episode, the pattern of movement in the HMI is not inconsistent with the orderly cooling-down process we're projecting for home sales and single-family housing starts in 2006," NAHB chief economist David Seiders said in a statement."
"The group predicts new home sales will slide 12 percent this year from record sales last year."
29 Comments:
National Median, Sales Down In First Quarter: NAR
The realtors association has some numbers out. “Real estate gains came to an abrupt halt in the first quarter of 2006, with the median price of a U.S. home falling 3.3 percent from the fourth quarter of 2005, according to a report by the National Association of Realtors.”
“Prices were basically flat or lower during the quarter as inventories of houses for sale rose and their time spent on the market lengthened. Median prices nationwide fell from $225,300 in the fourth quarter of 2005, to $217,900, a drop of 3.3 percent.’
“Many major metro areas showed slight declines, including Boston, Washington D.C. (down 2.4 percent), Los Angeles (down 0.8 percent) and Chicago (down 0.8 percent).”
Sales for NJ -8.1%
03 174.3
04 188.6
05 184.4
1stQ 06 170.6
Prices
NY-Northern NJ-Long Island, NY NY-NJ-P 11.2 %
03 343.5
04 385.9
05 445.2
1stQ 06 458.5
New York-Wayne-White Plains, NY-NJ 15.8%
03 387.3
04 436.6
05 495.2
1stQ 06 528.7
Grim:
Today I saw this house still for sale, with price tag of $989,900.
But realtor told me it was listed at $1,495,000 and already under contract.
So could make your lowball list in the coming months.
What I want to know is what was the exact listing price now? Do you still think it is overpriced at the current price? Also wondering for how much that it was under contract for.
Thanks a lot for your help,
Central Jersey house hunter
MLS: 2271107
rich in northnj:
If I recall correctly, what most people on this site have determined from looking at some different data is that better homes are still in demand and holding up/lifting prices. Stuff at the bottom hasn't moved. Another curious phenomenon that people have noticed is the relist at higher price tactic some realtors/sellers are using. Then, when the property is sold it looks like the buyer got a great deal, but was actually paying close or above the OLP.
I think we'll see drops in those other areas, as well...
JM
I agree realtors and sellers are playing games with listings. Just because you get the price off 15% does not make it a good price. manipulation and spin working overtime.
all HB stucks are tanking. back to back new 52 week lows, see for yourself!
The report quoted NAR's chief economist David Lereah saying, "With the supply of homes picking up very nicely in many areas of the country, pressure is coming off of home prices."
what a genius. He managed to figured out a way a positive sounding way to say how prices are dropping. I really want to smack this guy silly in front of his kids.
Wait a second. real estate does not fall in price.
NOT!
HOUSING BUST!
Babababababababa BOYCOTT Houses
Boooooooyaaaaaaaa
Bob
-rich in northernnj - Northern NJ prices went up 11.8%.
I don't know where you are getting these numbers, but I am positive that this is not the case for Morris County. Things are dropping like rocks there.
Where did you get this data?
-CJ
Attach the bunjee cord Bubbleheads .You fools are going to need it.
Bababababababbababa
BONZAI!!!!!!!
Bob
I agree Anon2:19, with such low demand high end homes must be causing the increase in price gains.
And I don't know which NAR pricing stat to use for my area (Bergen County):
NY-Northern NJ-Long Island, NY NY-NJ-P
or
New York-Wayne-White Plains, NY-NJ
But as RentingInNJ mentions, these numbers include NYC (and/or Long Island, White Plains and P=PA?)!
Rich
I don't know where you are getting these numbers, but I am positive that this is not the case for Morris County. Things are dropping like rocks there.
Where did you get this data?
Within the NAR press release is a link to the data.
1Q Existing Home Sales:
http://tinyurl.com/zay72
Metro Home Prices
http://tinyurl.com/lftzj
I don't know what this 'high end homes not dropping' talk is about, I'm watching prices drop in ALL towns (Summit, Short Hills, Chatham, etc).
I don't know what this 'high end homes not dropping' talk is about, I'm watching prices drop in ALL towns (Summit, Short Hills, Chatham, etc).
True, prices are down from peak of ’05-Q3, but up from the ’05-Q4.
If you don’t think it is higher end homes* that are propping up prices, what then do you believe is the reason for the price increase? With slow sales what else can it be? Is it the fact that NYC is part of the equation?
*I’m thinking of homes priced the $900 – multi-million dollar range, not so much as areas as you list them. My thinking is that these high-end homes may be the majority of what is selling and even with reduction in prices… that’s still big money.
Rich
PapapapapapapapaPANIC!
http://www.signonsandiego.com/news/metro/20060515-9999-1n15default.html
Actually, my theory would be wrong due to the fact that these are MEDIAN prices.
So there were price increases for the first quarter.
Few buyers bought, just more fools did.
So prices did not come down. But, this doesn’t mean your statement about prices coming down in the areas you mentioned because these prices are for the 1st quarter (Jan-Mar) only.
Still up about 10% from one year ago though, so doesn't mean much.
Rich In NorthNJ:
Actually, your theory might be correct even these are MEDIAN prices. More high-end sells means both average price and media price would be higher.
"RentinginNJ said...
But seriously though, who would purchase a $1.25M house and not be able to afford it within one year."
Job loss, divorce, family death or disability, something unexpected [such as rising interest rates :)].
That's why we advise that you have an Emergency Fund of between 2 and 6 months depending on circumstances.
Emergency fund what's that. just get an I/O loan and everything is oakie dokie.
House Prices never go down.
Bababababababa BOYCOTT HOUSES!
Bababababa HOUSING BUST.
Bonzai!!
Bob
Adjusting arms, higher property taxes and higher property insurance along with property upkeep/utilities/gas putting real hurt in to pocket books.
Throwing away $10k-$15k a year in property taxes and $300-400 in utility expenses up in smoke gets old very quickly.
Lots and lots of empty McMansions coming down the pike.
BABABABABABBABA BOYCOTT HOUSES!
Just say NO MAAS to ripoff prices.
Bonzai!
Bob
Didn't have much time to comment on all the news today. Sorry everyone. Work has been keeping me busy lately.
grim
Vult: conservative? No way.
I have seen my share of blow-ups.
If "conservative" means that you want to be in control of the major decisions in your life regardless of what happens in your family and career, well good "conservative" for you.
If you enjoy watching your life spin out of control at the drop of a hat - I guess this means "normal" in 2006.
What do I know?
Actually, your theory might be correct even these are MEDIAN prices. More high-end sells means both average price and media price would be higher.
Good point! Guess I've been on the computer a tad to long today!
I have been tracking a few towns in Essex and there seems to be a lot of UC - Under Contract homes over the past two months. I am in the market, but won't even look at a home unless it is 30 days or more on the market. Much to my surprise, they are going fast!!!!!
Is this just the end of the Spring sale?
Rich In NorthNJ said...
Where did you get this data?
Within the NAR press release is a link to the data.
1Q Existing Home Sales:
http://tinyurl.com/zay72
Metro Home Prices
http://tinyurl.com/lftzj
So thats where the disconnect is. You actually believe the NAR's numbers. You do realize that they aren't actual numbers, and they are based on Surveys...right? Trust me, try to audit there numbers from the last couple of years. When you see that 04 numbers differ with every report, you will understand. Now my question is...when something is quantifiable, why would you use surveys to collect data.
-CJ
While the "% off List" measure has some value, and the "% off Original List" might have a bit more. I believe that both have shortcomings which make them imperfect for any kind of trending or valuation.
Asking prices are all over the board at this point.
grim
MLS # 2238439
High Bridge (Hunterdon)
OLP $349.9K
New LP $299.8K
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