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US New Home Sales Slide To 17-Year Low; Prospects Dim
04-24-2008, 01:42 PM
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#1
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US New Home Sales Slide To 17-Year Low; Prospects Dim
US New Home Sales Slide To 17-Year Low; Prospects Dim
4-24-08 10:15 AM EDT
By Brian Blackstone
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- U.S. new-home sales slid further in March to their lowest level since 1991 while the supply of homes for sale soared to nearly a three-decade high, suggesting little prospect of any near-term turnaround.
Sales of single-family homes slumped 8.5% last month to a seasonally adjusted annual rate of 526,000, the Commerce Department said Thursday. That's the lowest level since October 1991. Economists had expected a much smaller drop of 1.9%, according to a Dow Jones Newswires survey.
February new-home sales fell 5.3% to an annual rate to 575,000. Originally, the government said February sales dropped by only 1.8% to 590,000.
Year over year, new-home sales were down 36.6%.
Other recent data confirm the headwinds the housing sector faces. Earlier this week, the National Association of Realtors said sales of pre-owned homes fell 2% in March. Prospects for a recovery in the broader economy are closely tied to housing, given its effect on construction, employment and consumer spending. With housing still under pressure, Federal Reserve officials are likely to lower official interest rates again when they meet next week.
The median price of a new home decreased by 13.3% to $227,600 in March from the previous year, according to Thursday's report. The average price tumbled by 11.3% to $292,200 from a year earlier.
Regionally last month, new-home sales decreased 12.5% in the Midwest and 19.4% in the Northeast. Sales fell 4.6% in the South and 12.9% in the West.
The month's supply of homes for sale rose last month to 11 months, the highest since September 1981.
-By Brian Blackstone; Dow Jones Newswires; 202-828-3397; brian.blackstone@ dowjones.com
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04-24-2008, 02:31 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 3,895
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i would never call for a moratorium on new construction, what with capitalism and all, but here's an idea: lets at least temporarily tack on real-to-life impact fees on new homes. bet that will both reduce inventory and shore up sales of existing housing stocks.
__________________
"off with their heads"~~dr. joseph-ignace guillotin
"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
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04-24-2008, 02:56 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
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De-construct all the houses. Save the materials.
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04-24-2008, 03:32 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jan 2004
Posts: 2,049
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Quote:
Originally Posted by lazygood4nothinbum
i would never call for a moratorium on new construction, what with capitalism and all, but here's an idea: lets at least temporarily tack on real-to-life impact fees on new homes. bet that will both reduce inventory and shore up sales of existing housing stocks.
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How about permanently? Far-flung developments increase my taxes and decrease my services.
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04-24-2008, 04:55 PM
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#5
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gone traveling
Join Date: Nov 2005
Posts: 2,146
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Quote:
Originally Posted by eridanus
How about permanently? Far-flung developments increase my taxes and decrease my services.
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They basically have stopped building new houses here in the southern part of wake county North Carolina. Not one new start has happened in the past 4 months. The homes that are built are still unsold, and this area is supposed to still be a hot market. What a laugh, so glad I don't have to sell.
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04-24-2008, 04:58 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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I think Rewahoo said a developer not too far from him partially built four demo homes and then came back and bulldozed them on their way to quitting.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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04-24-2008, 05:37 PM
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#7
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Recycles dryer sheets
Join Date: Jun 2005
Posts: 297
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Originally Posted by lazygood4nothinbum
i would never call for a moratorium on new construction, what with capitalism and all, but here's an idea: lets at least temporarily tack on real-to-life impact fees on new homes.
Quote:
Originally Posted by eridanus
How about permanently? Far-flung developments increase my taxes and decrease my services.
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That's funny that you mentioned that,
This story about Youngstown mentions the city trying to buy up the remaining houses in mostly vacant neighborhoods to raze them all. This will enable them to stop wasting money on road maintenance, street lights, police presence, and they can replace it all with some nice greenways. I'm sure you are all aware of the rustbelt economic problems -- these outer urban neighborhoods were built when the population was 200,000, and now it is down to 80,000.
City's plan to relocate residents meets resistance - Apr. 24, 2008
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04-25-2008, 08:14 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Next thing you know, the meth labs will be asking for tax abatements...
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Have Funds, Will Retire
...not doing anything of true substance...
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04-25-2008, 08:49 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by newguy888
They basically have stopped building new houses here in the southern part of wake county North Carolina. Not one new start has happened in the past 4 months.
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Mr. Market is solving everyone's problems re: suburban sprawl, rapid growth, etc. That's a good thing, right?
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04-25-2008, 11:23 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 3,895
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Quote:
Originally Posted by HFWR
Next thing you know, the meth labs will be asking for tax abatements...
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you are too funny.
Quote:
Originally Posted by FUEGO
Mr. Market is solving everyone's problems re: suburban sprawl, rapid growth, etc. That's a good thing, right?
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local newspaper poll on population growth in south florida:
Florida has dropped to No. 19 on the list of the fastest-growing states, a far cry from the days when it was always near the top. Is this good or bad news?
Good news. (2102 responses) 77.7%
Bad news. (602 responses) 22.3%
2704 total responses
__________________
"off with their heads"~~dr. joseph-ignace guillotin
"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
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04-25-2008, 10:59 PM
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#11
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Recycles dryer sheets
Join Date: Apr 2007
Posts: 202
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A sign of the times - a primetime TV ad by NAR on a major network - simply promoting home ownership and the supposed benefits it brings. Maybe I'm just way too cynical, but it smelled of desperation - and I'm pretty sure that the impact on most would be to increase their negative perception of the market...
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04-26-2008, 05:14 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,204
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No one is surprised by all this I assume. The spread between median income and median home prices has become so wide something had to happen sooner or later. Even these depressed prices in the Northeast and SoCal seem completely unrealistic, but the market will sort it all out. Will be interesting to see new assessment and reduced property tax revenues, but then I'm sure govts will adjust rates to compensate.
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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04-26-2008, 06:31 AM
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#13
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gone traveling
Join Date: Nov 2005
Posts: 2,146
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Quote:
Originally Posted by Midpack
No one is surprised by all this I assume. The spread between median income and median home prices has become so wide something had to happen sooner or later. Even these depressed prices in the Northeast and SoCal seem completely unrealistic, but the market will sort it all out. Will be interesting to see new assessment and reduced property tax revenues, but then I'm sure govts will adjust rates to compensate.
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New tax assessments? Yea right, I was sent my re evaluation early this year and I laughed at the counties 20% increase in my homes value as I sent in a tax appeal, which was denied yesterday. Now we will appeal what was denied. Home prices are down easy 15% in our neighborhood here in the Raleigh area and homes for resale are sitting unsold for now 6+ months, with new construction sitting unsold now for almost 1 year. This area is supposed to still be A HOT market!!! The media is still spinning down here in the carolinas. Gang its bad EVEN here.
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04-26-2008, 06:52 AM
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#14
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
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Quote:
Originally Posted by newguy888
New tax assessments? Yea right, I was sent my re evaluation early this year and I laughed at the counties 20% increase in my homes value as I sent in a tax appeal, which was denied yesterday. Now we will appeal what was denied. Home prices are down easy 15% in our neighborhood here in the Raleigh area and homes for resale are sitting unsold for now 6+ months, with new construction sitting unsold now for almost 1 year. This area is supposed to still be A HOT market!!! The media is still spinning down here in the carolinas. Gang its bad EVEN here.
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Our assessments are going up too - - no more post-Katrina breaks - - plus our tax assessor says that property values for individual houses have risen in general. Have they? Well, I just happen to have compiled and studied local sales information in my suburb every week for the past six years, as a hobby. It is difficult to know how many post-Katrina sales were/are of damaged houses (which can affect the median, which is definitely down). I think prices of undamaged homes have dropped as well, but that is hard to demonstrate.
So, the politicians can (and will) get away with saying whatever they want.
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Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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04-27-2008, 11:49 AM
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#15
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Recycles dryer sheets
Join Date: Apr 2008
Posts: 54
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My tax assessment has gone up for 2008 but is set to fall in 2009 (we get bi annual valuations). While the decline in assessed value is about 13% it doesn't come anywhere near reality.
But then there is no way that the city is going to want to decrease revenues by that much.
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