This house in Skokie still has not sold. See the original post titled Falling Sign, Falling Price.Back on January 1st, 2006 the house was priced at 699K after a price reduction. I had written at the time "Despite its price reduction it is significantly overpriced. They should reprice it to 625K and see if it will sell."
The hefty 699K price tag still stands as there have been no more price reductions. It has a new MLS number of 06003346.
Will it sell at 699K?
H*ll No!
[Ok. Maybe if they wait 10 years]
Posts
way overpriced
ReplyDeleteHallelujah! NVAR's Feb. numbers are online now. Check this out!
ReplyDeletehttp://www.nvar.com/market/marketstats/feb06/index.html
Oh wait a minute, I just don't understand why DOL's pretty job growth numbers haven't helped to absorb the inventory a bit. BTW, it was 78 on Friday, and we are having a great warm weekend now. So seasonally adjusted??? %@#@%@# Sorry I'm not intelligent enough to explain.
Bush is praising the historic high homeownership rate again, which really makes me puke. I don't see those stupid nutheads with exotic loans as homeowners, they're just a buch a fools or gamblers holding a Macmansion over their head while dancing on the edge of a knife.
I'm repeating what I have said in previous post -
1. With the freaking economy so hot and the deficit so huge, Fed has to raise the rates which I think will hit 5% or above.
2. Housing price in DC region drops at least 20%in 2006.
3. In the next 3 years, we see price drop 50-60%.
The Great Recession is on the way folks. When you feel so high in a party, it's about the time to end.
David, totally OT but someone posted this on Craigslist's forum regarding NVAR's stat, hope it clears things a little bit.
ReplyDeleteI think I finally know what's going on with the sales reports from the Northern Virginia Association of Realtors (NVAR) posted here:
http://www.nvar.com/market/mktreports.lasso
My conclusion: Sales prices in 2006 are so far lower than in 2005. The figures given by NVAR prove it. This is the first time that this has been true as far back as NVAR has issued these reports. But rather than admit the truth, NVAR suddently changed their accounting system to try to mask the drop.
In the past, the numbers for the current year were year-to-date averages/medians, while the numbers for earlier years were for the ENTIRE YEAR.
Starting in January 2006, the numbers for the current year are year-to-date averages/medians, while the numbers for earlier years are ALSO year-to-date averages/medians for those years.
Take the example of SFH in Fairfax County. The sales figures given for 2003 were constant for all of the reports issued in 2004 and 2005 - about $413K for the average and $351,000 for the median.
However, starting in the Jan. 2006 report, these numbers suddenly dropped by 10%. The 2003 numbers are the average/median for just Jan. 2003 rather than for the entire year of 2003 as had always been the case before.
Similarly, the sales figures for 2004 were constant for all of the reports issued in 2005 - about $495K for the average and $429K for the median.
However, starting in Jan. 2006, these numbers suddenly dropped by up to 17%. Now the 2004 numbers are the average/median just for Jan. 2004 rather than for the entire year of 2004 as had always been the case before (as you can easily confirm by checking the Jan. 2004 report).
The new system probably makes better sense than the old system. However, I don't think its a coincidence that they switched systems EXACTLY when the old system would have indicated that prices DROPPED ... not necessarily YOY but over the last 9 months or so.
This little accounting trick will fail as soon as the YOY prices show a decline, which could very well happen towards the end of the year.
Good post...
ReplyDeleteBy the end of this year, no trick will make the numbers look like pretty any more.