Existing home sales disappoint, again, despite yesterday’s rosy predictions by the usual “experts”, Wall Street tanks (down 200 and still falling) and the world’s going to hell, generally. Interesting divergence in views between buyers and sellers right now: I have buyers who are being cautious in their bids because they see the approaching storm and we’re meeting sellers who must be listening to the National Association of Realtors and are sticking fast to their price because things are only going to get better.
My guess is that I’ll still have buyers this fall, the sellers will still have their houses and any bids will be still lower than now.
But that’s just my guess. Maybe Obama will be reelected, the Democrats will pass a balanced budget, Italy, Spain, France and Greece will sort out their difficulties and peace and harmony will spread around the world. Maybe.
UPDATE: If you’re keeping score, May single family sales in Greenwich were down 15% from last year, average price down 5.4%, median down 2.9% and inventory up 5.4%, from 700 to 738. In 2007, inventory was 570 and climbed to 612 in 2008.
You forgot the worldwide “Kum ba ya” sing-a-long.
Obama might be re-elected, but whoever takes office will inherit this mess.
Feel like you’re being played yet?
“American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.” – Alan Greenspan – February 2004
“House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.” – Ben Bernanke – October 2005
“With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.” – Ben Bernanke – November 2005
http://www.washingtonsblog.com/2012/06/who-destroyed-the-middle-class-part-2.html
I’m hiding under the bed till this is over.
Canada tightening mortgage standards.
http://www.theglobeandmail.com/report-on-business/economy/housing/flaherty-clamps-down-on-mortgage-rules-to-cool-overheating-market/article4359232/
Ironically, property prices in London and Paris are going up still.
Demand down? No one driving to work anymore? No one looking for work either? No one on vacation flying planes? Romney winner – our savior is coming. Dow has 2000 points to drop til reality sets in.
Dusty: Good place for your money as well.
If we are lucky and Spain, Italy and Greece solve their problems, Obama balances the budget and the economy picks up again, the bond market will tank and interest rates will rise. That will cause mortgage rates to go from 4% to 6%, and buyers won’t be able to use as much leverage to pay higher prices. So we are either screwed or we are screwed.
If things get better, it will be harder for buyers to buy a more expensive house with higher mortgage rates. If things get really worse like property prices and S&P halved, unemployment would be 20%. Fed would reflate the economy; inflation surge; greenbacks tank. We would be better off if we have a property rather than worthless cash then.
I’ve mentioned this before; several dot.com zillionaires “overpaid” for Greenwich homes during the bubble and when the bubble burst, they still had beautiful houses instead of worthless shares and options.
Can’t sell your house? Try advertising in China.
It has been said that there are two ways to conquer and enslave a nation. One way is by using the sword, and the other is by using debt. Fortunately, America is not in danger of being conquered by the sword right now, but America is being conquered by debt. The borrower is the servant of the lender, and today we owe China more than a trillion dollars. By running a gigantic trade deficit with us, China has been able to become incredibly wealthy. We have begged them to lend us back some of the money that we have sent them and this has made them even wealthier. Now China is gobbling up U.S. real estate and U.S. assets at an astounding pace. In fact, some cities are in danger of becoming completely dominated by Chinese ownership…..
http://theeconomiccollapseblog.com/archives/will-toledo-ohio-be-the-first-major-american-city-to-be-owned-by-china
One thing you can be sure of: if Romney wins, and the GOP takes the Senate, and holds the House, there will be no more talk of deficits and a balanced budget. Remember that deficits don’t matter under Republicans. Romney wants to raise Pentagon spending, and cut taxes. Is that any way to balance a budget?
At least the Republicans will have a budget.
Ah, Bill. Nice to have you back. Missed you on all those discussions about how the private sector is doing fine and Hollywood fundraisers and executive privilege. Must have been an oversight on your part. Step it up, son.