Why is this dip devastating and dire? There was a four month trend of growth and now a small slow down. It's devastating and dire if it continues for a long period and stalls the recovery in a more meaningful way.
Yep. See above
Which likely helped bring about the growth earlier in the year.
Is that a problem? You have to get the old sh*t off the inventory shelves to start clearing out the new. It's got to start somewhere. I don't know the percentage, but of those people selling those houses to the first time home buyers, how many turned around and bought a bigger, nicer, 15 year home?
It's also very nice that so many people have become homeowners.
I don't think anyone can get an accurate picture by taking the median sales nationally since some areas are doing better and some not so great. Prices are still higher in most places than what they were at the start of the overinflated pricing 6-7 years ago.
I built my current house in 2002, and if I sold tomorrow, I'd still realize a profit. It wouldn't be as large as it would have been at peak in 2004, but I will more than make up for the on the other end when I buy a nicer home for less than I would have in 2004. So it's all relative, and it certainly doesn't scare me.
So? Would you rather they stay on the books? They need to get sold so the market can pick up again.
Movement in homes over 300,000 are probably down too, and that's probably a lot more concerning than what's going on with 2 million dollar homes however, it's not as sensational.
With the holidays and winter around the corner, those prices will most likely have to come down. People need to be realistic.
That's right, and you won't know when the bottom has hit until it has passed.
NAR didn't say that and neither did any other "expert" in the article you linked. It's a little dishonest to pepper in your opinion and not somehow set it apart from the facts you're quoting.
This is likely the biggest factor in the " temporart blip," and it's been a huge problem for home buyers. These ridiculous new regualtions which took effect May 1 have caused things to slow down on the mortgage end. It's not the least bit surprising to see its effects a few months later.
The new regs irt appraisals IMO has been the most damning. If you are concerned about the real estate market, you may want to look there.
thank you for your civility and thoughtfulness, you have demonstrated in this thread that you really are a stand up chuck
why is this drop in home sales devastating and dire? because we're already way below water, and instead of surfacing we're sinking further
the point about new home buyers is not political, it's simply that that with sales already being abysmally low EVEN WITH an $8000 incentive, how's the future look when the tax credit is yanked in november?
thus, it's not a problem, the fact that 1/3 of buyers are first timers, to answer your fair, stand-up question, except as an indicator of our bleaker outlook when the $8000 inducement is erased
sales under 300G being down is more problematical, according to you---yes
but it's not good---according to you
you agree there's no bottom in sight while asking what's so dire
???
my opinion about unemployment nearing 10% negatively impacting sales was, indeed, my personal view---i said, it "has got to be the most pertinent explanation" for why we're here---if that's too opinionated for you, i apologize
i thought, however, the connection was obvious
in a later post, you say, "the same bs that got us into this mess is happening again"
that's not dire?
thanks, friend, i'm happy that your home has appreciated above its value when you bought it
mine too
cliff