Going To Get Worse Before It Gets Better
From the Record:
Consumer prices spike in region
By KEVIN G. DeMARRAIS
Consumer prices have soared 5.6 percent in the metropolitan area in the past year, the biggest 12-month gain in 15 years.
...
The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index for the North Jersey-New York region rose 0.5 percent in June due to sharp increases in housing, food and utility costs.
Even discounting the often-volatile food and energy sectors, the region's core rate of inflation is up 4.6 percent since June 2005.
By comparison, the national CPI rose just 0.2 percent in June. That is the smallest increase in four months, resulting from a temporary dip in energy prices.
...
Higher interest rates may have taken the steam out of the home-buying market, but that has put additional pressure on the rental market, especially high-end properties that consumers had been buying in the past, Kohli said.
...
"I think it's going to get worse before it gets better, I really do," he [Naroff] said. "I sense that we still have some issues that have to be dealt with, especially with energy prices remaining so strong, that the pressure to recoup some of those costs is going to be a real problem."
Consumer prices spike in region
By KEVIN G. DeMARRAIS
Consumer prices have soared 5.6 percent in the metropolitan area in the past year, the biggest 12-month gain in 15 years.
...
The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index for the North Jersey-New York region rose 0.5 percent in June due to sharp increases in housing, food and utility costs.
Even discounting the often-volatile food and energy sectors, the region's core rate of inflation is up 4.6 percent since June 2005.
By comparison, the national CPI rose just 0.2 percent in June. That is the smallest increase in four months, resulting from a temporary dip in energy prices.
...
Higher interest rates may have taken the steam out of the home-buying market, but that has put additional pressure on the rental market, especially high-end properties that consumers had been buying in the past, Kohli said.
...
"I think it's going to get worse before it gets better, I really do," he [Naroff] said. "I sense that we still have some issues that have to be dealt with, especially with energy prices remaining so strong, that the pressure to recoup some of those costs is going to be a real problem."
13 Comments:
Get worse?????????
According to slick realtors we are in a normalized market.
This stuff should be scrutinized by the AG of US. The spin and manipulation is just unethical!
Wave 1 of the Tsunami has hit wait til wave 3 and 4.
Babababba
Bust!
Bid 30% less off of "Peak 2005" prices.
Don't get stiffed by a slick realtor or greedy money grubbing seller trying to stick you with an overpriced house.
Don't be a bagholder.
If you have good finances and made the sacrifice to save a 20% down payment YOU ARE IN THE DRIVER SEAT. DO NOT LET ONE OF THESE SLICK GRUBBERS TRY TO STICK YOU WITH A DEFLATING HOME.
Babababbaa
BOOOOOOOOOOOOycott houses!
Bababbaba
Bob
Escalating utility cost,Property taxes , Gasline Insurance and readjusting ARMs putting big strain on FOOLS budgets.
SHOW & TELL SOCIETY GOING TO PAY FOR THEIR RECKLESS FINANCIALS.
BABABABABA BID AT LEAST 25-30% LESS ON PEAK 2005 PRICES. WATCH THE GREEDY MONEY GRUBBERS JACKING OFF PEAK 2005 PRICES EVENTHOUGH MTG RATES ARE UP 25-30% LAST YEAR OR SO.
No GIVE NO NOOOOTT""""ING!
Bob
"i'm seeing more properties fall out of contract after going Pending status. i've seen 3 in summit in the last week alone. these are at the starter level (up to $650k). i'd like to know precisely why but i have my opinions."
Seeing this a bunch as well. Some after being "Under Contract" for up to two months.
Once appreciation leaves the equation, it's no longer a viable option for "buyers" to use exotic loans hoping to stay 1-2 years and then resell at a profit.
Now, they'll sell at a loss in 1-2 years. This no doubt removes a sizable portion of buyers from the market.
No appreciation = fewer buyers.
Higher interest rates = fewer buyers.
Median home prices @ 10 median income = fewer home buyers.
Speculators exiting market = fewer buyers.
Buying now would be a serious mistake for anyone who isn't truly wealthy (net worth in millions) and can't absorb a considerable loss.
The last Greater Fools we're seeing jump ship from "Under Contract," woke up just in time not to get burned (assuming they didn't lose their deposits).
IF YOU ARE A BUYERE THAT HAS SACRIFICED AND AM NOT ONE OF THOSE SHOW & TELL TYPES THEN YOU ARE IN THE DRIVER SEAT!
DO NOT LET ANY SLICK REALTOR OR GRUBBING SELLER SAY OTHERWISE.
YOU VALUE YOUR MONEY AND YOUR EFFORT. NOT LIKE THE FOOLS THAT BOUGHT THE LAST 2 YEARS WITH RICKY GIMMICKY LOANS. I DON'T GIVE A DAMN ABOUT THEIR DIRE CIRCUMSTANCES. THYE CONTRIBUTED TO THESE INSANE PRICES AND DESERVE WHAT EVER IS HEADING THEIR WAY!
NO BIDS NOO NOTTTT'ING UNLESS 25-35% BELOW PEK 2005 PRICES.
NOOOOTTTT'''ING ELSE!
Bob
Grubbing greedy sellers misery climbing!
Get back to work and save more to retire. Don't stick a buyer with your bloated overpriced house!
NO MAAS to Ripoff prices!
8-10 times incomes is a ripoff when these grubbers paid 2-3 times maybe 4 at most!
NO NOOOOTTTT"""ING!
BOOOOOOOOOOOOYcott
Bob
Okay, check this out:
http://centraljerseyposhouse.blogspot.com/2006/02/back-to-beach-long-beach-island.html
The house on top, the 1 br cabin in Ship Bottom, was listed for $399k in February. It's now languishing at $324k. That's, what, approx 20% reduction? Motivated seller? Bad market?
I leave it up to Bernanke to decide.
Richard,
You seem to have an real time idea of what is going on. What happened to the house at the end of Summit ave next to Rt24. I still see it listed 1.5 mil, but I thought they were going to sell to the best reasonable offer (999K)at the end of June?
Did no one bite at at all?
"What happened to the house at the end of Summit ave next to Rt24."
I guess that firesale didn't go well? They posted plywood signs with spray paint up on Route 24 saying "Auction today, best reasonable offer."
I think
http://www.houseforsalesummit.com/
is one of those sellers that keeps lowering the price a little too late and not enough.
Its been lowered in 5K increments a couple of times....
big deal....
no more than 400K in this market...its nice its on the park, but really not that great of a house....
About the http://www.houseforsalesummit.com
Not a bad house, but for 480k in this market, I agree, still too high. So much inventory and some sellers shaking in their boots, you can sweat this guy out. If some else comes along and picks it up....ehhh...big deal....least you were not the sucker and that buyer will be upside down in a years time....ouch....not alot of fun.
SAS
While we are talking about Summit, I drove by this house today...
(think I did anyways)
This off Century 21 website
MLS# 2281843
3 bedroom, 2 bathroom house in Summit.
This idiot is asking $689,900.
If its the house I drove by today, its on a busy intersection, the god damn cars that pass by are literally in your front yard.
We are talking many cars...at high rates of speed....
This seller is toally in la la land with that price, you would have to almost give me that house for free before I would buy it.
What a joke.
SAS
SAS, that house sure looks like a real POS.
It says "$140K in upstate NY" and not "$700K in Summit."
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