Good data point. That Reno market is certainly unwinding faster than things did in SoCal in the early 90's. But at that time we didn't have the same level of speculation and no exotic morgages. So when the market began to slow it was the real estate agents, small developers, and a few speculators were the first to start unloading -- but that took 18 months of anemic sales.
But now, with all these speculators and owners who have bellied up to the interest only / neg-am type mortgages with 1 and 2 year resets, I think things can fall MUCH faster since they will have to dump thier properties almost as soon as thier yearly refi is not an option (i.e. when prices stall or fall). Then we'll have the home builders in a price war with the house poor and that should make for a very interesting summer!
Ok, todd, whatever you say.
Now, get a load of these numbers and then project what the numbers will continue to do as the builders place even more homes on the market: http://realtytimes.com/rtmcrcond/Nevada~Reno~dianecohn
If you think that the same thing is NOT happening in Phoenix, you're a fool.
So what is MTH's median sales price in Phoenix? In a market with exploding inventory (like Phoenix), it's the more expensive homes that will get hurt the most. That's what I noticed during the crash in the early 90's in SoCal. The $500K houses came down to $350K but the $2M ones came down to $800K.
�...those look like fabricated numbers.�
...good, denial has always been a great investment attribute. Hang in there � it�s looking really, really good for you.
�...what about the actual sales prices?�
Judging from the trend of the inventory build-up, I�d say that actual closing prices are lower than the asking prices.
Excuse me, those look like fabricated numbers. For starters, the median home price in Phoenix is under $300K. And your website says those are asking prices - what about the actual sales prices?
Yes, but pricing power is improving in Texas. Plus MTH uses options for most of its land purchases in its other markets, does not share in most of the land appreciation, and therefore most of its profits are real as opposed to real estate gains that competitors have used to juice profits.
RL Brown is a paid stooge for the homebuilding industry. If the market is so wonderful why are all the builders now panicking and opening up to investors and 2nd home buyers and raising commissions to 5 and 6 per cent to agents on unsold specs/fallouts when they weren't before? Belive me, the market is turning ugly in AZ very quickly and faster downhill than anyone though possible. That report was based on old data. Unsold home inventory is skyrocketing in AZ.