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The following housing market report was filed by Bob Willis and reported by Bloombarg.com:
Sales of new homes in the U.S. fell in November, signaling no end to the housing recession that threatens to stall economic growth, economists said before a report this week.Purchases fell to an annual pace of 718,000 from 728,000 in October, according to the median forecast of economists surveyed by Bloomberg News. The 716,000 pace reached in September was the lowest since 1996.
The real-estate slump, already the deepest in 16 years, shows no sign of abating as discounts fail to lure buyers and inventories swell. The risk that the slowdown will spread through the entire economy is prompting business to rein in orders for new equipment, a separate report may also show.
``We're not in line for any good news on housing for a long period of time,'' said Mike Schenk, chief economist at the Credit Union National Association, in Madison, Wisconsin. ``It's a sector that will take a long time to turn around.''
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It seems that however low & agressively a property is priced, the few buyers that are out there are wanting even greater price cuts - hence the STAND-off & the building inventory levels. Appraisals are coming in low - lenders are wary of lending on a declining asset. The most recent transaction I am closing this week, is one in which which I am reresenting the Buyer - the Seller has to come with a big fat check of $47k to cover his mtg. payoff & commissions. I was shcoked when I saw the HUD1 - This is what I am seeing out there. Rapid price declines? For sure.
June Stark
Las Vegas Condo Experts & Bargains
Everyone that bought in 2004-2005 and is trying to sell now is in a world of hurt
I agree with the buyer outlook...we have to get buyers in homes.
I am usually a very positive thinker & believe in making lemonade out of lemons so to speak...but James Wong seems to have a very solid understanding of the current market dynamics which are out of our control. I do think that the phrase " STATE OF DENIAL" is right on in describing the mindset of the Seller & many real estate agents today.
Our team has made it a policy of not taking any overpriced listings whose sellers have unrealistic expectations. The day of testing tha waters with pricing strategies is over. I do fear we are in a freefall in tmany sectors of the market and foreclosures in Las Vegas are on the rise, unfortunately.