Home prices drop 18 percent

[Changenow]

Prices remain the story in home sales, with Sarasota-Bradenton prices falling 18 percent in October, the second biggest drop in the state.

The median sales price in the Sarasota-Bradenton market was $277,900 last month, compared with $340,700 during the same month in booming 2005.

The Charlotte County-North Port market was not far behind, with a drop of 17 percent, from $243,900 to $202,800.

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http://www.heraldtribune.com/apps/pbcs.dll/article?AID=/20061129/BUSINESS/611290461

[Warpy]

1. They seem to have fallen about 15% in central NM

which was called a hot area as recently as three months ago with existing housing stock undervalued.

[Changenow]

2. There are three unoccupied, unfinished flips

near me with "for sale" signs up. Two of them look like quality renovation was underway when the money ran out. I feel bad for honest investors with bad timing.

[A HERETIC I AM]

6. "An honest investor with bad timing"?

Isnt that another way for saying someone pretty greedy looking to make a buck and failing?

Sorry, but I have no sympathy for folks like you mentioned. In fact, I have little sympathy for anyone who tried to use an unsustainable, irrational runup in a market sector/asset class as a second income particularly if they refused to properly diversify.

Who do I feel sorry for in this current slump? The new home buyers who moved in order to take a new job in an area near the peak of the housing market. Now he is saddled with a mortgage and home that may take 20 years or longer to get back to where he started.

I am no more sympathetic for "house flippers" than i am for a person who puts all his money in one stock just before it peaks and crashes because he thinks he has the new Microsoft.

BTW, I am not against greed, not by any stretch. I make my living off of it. We all do, in a way. (Most of us, anyway)

I'm against stupidity.

[DBoon]

8. honest "investors" need to learn to accept risk

If you want to play the capitalist game, you need to accept the fact that you CAN lose everything.

It doesn't matter if you are honest are not - that's the way the game works. You invest, you take the risk, MAYBE you get the rewards, MAYBE you dont'

Now the people who need a place to live I'd treat different - but these folks aren't "investors", they are "homeowners". A paper loss in value SHOULD not affect a homeowner as long as they can afford to make the payments. Unfortunately, a serious market drop will affect homeowners, but I don't think this should be the case.

The need for shelter is a basic human right. The need to make a profit on an investment is a business decision.

[nosillies]

9. hear hear

:applause:

[msongs]

3. up 10% over last year here : - ) nt

[4dsc]

4. A year supply of house in des Moines

I spoke with a realtor friend of mine over Thanksgiving and he claimed that Des moines Iowa has over a year supply of new housing. He also stated that most major builders quit building homes on speculation. Very little is being built in Des Moines at this time.. He also knows of at least 100 homes priced above $300G's that are just sitting there..

[Changenow]

5. Damn, des Moines?

One wouldn't think of that as a nutty speculative place.

[partylessinOhio]

7. Prices are falling but property tax keeps going straight up. Makes no sense.