Sunday, November 13, 2005

Falling Leaves, Falling Prices II

The house located at 8300 Hartford Avenue in Silver Spring, MD ( DC suburb) has still not sold. I blogged about it on October 9th. Then it was listed for 599K; now it has been reduced to 579K.

Its competition is another house just up the block on Hartford Avenue ( 8406). The house was originally listed for 679K; then reduced to 649K, then 629K, and now 599K. See my blog post about 8406 Hartford Avenue.

Leaves are falling,
Prices are falling.
Buyer are baiting,
Sellers are waiting;
Sales are stalling.

9 comments:

  1. Meanwhile, in P.G. County, a few minutes away, they are approaching a record year of homicides. Probably a record year for car thefts also. So it's a nice neighborhood if you don't value your car or your life.

    At least the previous record year (1991) there was a recession, but P.G. County is booming right now, with plenty of jobs. It can only get worse, which is scary.

    Plus, there seems to be a dwindling supply of morons who believe that "real estate in the DC area never goes down." LOL. Yeah, right. If you believe that, you must have been here less than eight years.

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  2. I drove down Colesville, Georgia, and University today. Many, many, homes for sale. I didn't bother checking the prices. The prices would need to fall a lot more before I bother looking at these old, small houses near dangerous and crowded neighborhoods.

    Thanks for your great blog. I really like the house updates.

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  3. "At least the previous record year (1991) there was a recession, but P.G. County is booming right now, with plenty of jobs. It can only get worse, which is scary"

    It is scary. Although in fairness, the population of PG county is significantly higher now then it was in 1991. Thus the murder rate is significantly lower.

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  4. Is it significantly higher? I thought it was about 10-15% higher.

    There certainly is a lot more traffic, so it is possible there are a lot more people. However, the new people are moving into the eastern part of the county, which has less crime.

    I think now is worse. In 1991, the problems were far more concentrated than now (where almost the entire inner Beltway area is a mess), and the problems were more connected with the crack epidemic, which affected the whole country. Now there really isn't any excuse.

    On the houses you showcased above, the reductions they show are really quite small. It will be very interesting to see if the prices fall more or if they can sell at these levels. I also wonder if falling house prices will cause some realtors to ask more states to keep home sale price data private. In Texas, I think, they don't publish home price sales data for individual houses.

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  5. According to the US Census in 2004 PG County had a pop of 842K. Back in 1990 it had 729K.

    "On the houses you showcased above, the reductions they show are really quite small." One started out at 679K and now is offered at 599K. That is a signiifcant price reduction.

    "I also wonder if falling house prices will cause some realtors to ask more states to keep home sale price data
    private"

    They better now. The public outcry should be huge if they try that.

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  8. In Connecticut, where housing has gone up dramatically since 2000-in some locales 90%- I see a drop here of at least 15% from current prices- housing however has not had a significant impact here in employment growth, and the overall economy- compared to other regions. We may have a few more realtors, home improvement stores, etc- and a few more mortage houses- but the losses should not be large. Nontheless, a drop in prices of 15% will slow the economy here- which is not producing jobs quickly anyway(we have not had the massive real estate engine other regions have-that has produced faster employment growth) We will fall into a recession(I feel) next year-but it will be less traumatic then other areas. In the last bubble here (peaked in 1988) and fell from 1989-1995 housing prices dropped 30% for SFH and 45% for condo's.

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  9. "One started out at 679K and now is offered at 599K. That is a signiifcant price reduction."

    LOL. Yeah, you are right. I guess I think it's small because it is still priced much, much, more than what I think it is worth.

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