There are 20 homes on our street. One neighbor moved out 2 months ago because his structural steel fabricating business went under last winter. There are now 3 more homes hitting the market either due to divorce, job loss, or falling property values. These people hung on hoping things would get better. That's 20% turnover since the first of the year. We are in no way out of this recession as far as I am concerned. With these numbers of existing homes becoming available, I just don't see any way TOL can compete.
Now you see why I asked what would happen if everyone at the same time said NO! to making payments on everything... (for one, there would be no need to worry about the repo man or collection agencies calling)
Some more observations:
In the area of my main residence, I'd venture to say that at the very least, 1 out of 5 or 20% are either for sale or in foreclosure. Interestingly, my neighbor who's home has been on the market since last year has said, he has had not even a single tire kicker! NOT A SINGLE ONE! THIS AFTER he reduced his price in the first two months!-- and I would say his home has tons of curb appeal, is move in condition and very appealing to an average family. Not too large, not to small- the ideal American home, yet, no interest. Perhaps the expected rise in property tax has something to do with it so we're in the same boat, although I have no intention of selling just yet. Just yet... like millions who are waiting for any sign of life to sell. Forget about "shadow inventory"-- there are ghosts lurking behind the scenes waiting for the next sucker to buy his over taxed shack.
A few towns over from here, a few homes are selling but talking to the contractor who has owned these homes since before the bubble, said he has reduced the price over 65% from 2006 levels just to get people looking at them! (I believe they were asking $600k and now they are starting to move at $260k-$290k) Why? He can not afford the burden of owning these homes any longer. Oh, and I should say, the town just passed the budget last week which calls for a hefty 19% property tax increase! (These former $600k homes are paying $9k in taxes before the increase- after it will be $11k or more!) How many homes are for sale at fire sale prices? Probably over 40% IMO and increasing...
PS- TOL is increasing today as the corpse is pumped up with even more stimulants to give it that good old 'its alive' feeling.
buyers should beware and factor in escalating property taxes into their bid price, this should drive down prices some more to fair levels. sometimes the RE hores list last years property taxes on the house. just check out property taxes with town before settling on their quoted property tax. In my neighborhood the RE hores can't sell anything. Nice houses and even shacks are not moving. The signs keep moving toward the street each passing month. Some are literally on the street as desperation grows. Now see the RE hores strategy is to pull the sign on the property and remove the listing from MLS eventhough the house is still for sale to try to make buyers think inventory is low. BUYERS do not buy into this scheme. Lots and lots of desperate sellers and foreclosures coming down the pike in the near future. Nice try WHORES. I have never ever seen such propaganda and manipulative techniques to sell something. Starve MFers starve. The greedy RE industry made their own bed now they need to lay in it. F%^$# American Greed goes sour.