New home sales fell in 38 states, average of 12.7 percent

[warrens]

WASHINGTON - Sales of existing homes fell in 38 states during the summer, led by steep declines in Nevada, Arizona, Florida and California, as the once-booming housing market showed further signs of a steep slowdown.

The National Association of Realtors reported that sales dipped to a seasonally adjusted annual rate of 6.27 million units nationwide, down by 12.7 percent from the same period a year ago.

The declines were the largest in once-booming areas of the country. Sales fell by 38 percent in Nevada, 36 percent in Arizona; 34.2 percent in Florida and 28.6 percent in California.

In all, nine states had sales declines in the summer of 20 percent or more compared to the third quarter of 2005.

The weakness in sales also affected prices with 45 metropolitan areas experiencing price declines, according to a separate survey the Realtors did of 148 metropolitan areas.

http://news.yahoo.com/s/ap/20061120/ap_on_bi_ge/home_sales

Hoo boy. And with a lot of balloon mortgages about to hit the balloon stage...look out below.

[louis-t]

1. I am so sick of hearing

that every other state except Michigan is "booming". It is just not so.

[warrens]

2. Particularly the "booming" ones

Arizona, Florida? This is turning everything upside down. Houses have been priced out of the average person's reach, and there are hundreds of thousands out there who are going to have to walk away because they can't pay the mortgage or find a buyer. This is way beyond "house-poor."

[salin]

3. perhaps the references to "booming"

aren't about "blooming" (as in growing economies) but references to the sounds of localized economic implosions.

[warrens]

4. "I fall down, go boom..."

Good point. Man, all we need now is a fucking recession. I don't know how much more bushnomics I can take.

[CrispyQ]

5. The woman behind me has had her house for sale for over 6 months.

A few years ago it would have gone in weeks. She's dropped the price once already & I don't think what she's asking is unreasonable for our neighborhood.

[Horse with no Name]

6. My mom's house value (in Arizona) went through the roof

She could have made a triplefold profit.
But she is smart enough to realize that she would have just had to pay an overinflated price for another house and sink herself into some serious debt.
It was phony inflation. Smart people held on to what they had. Greedy people tried to overbuy.
I would imagine that the 1400 sq. house that many traded up to a McMansion is probably looking pretty damn good to them by now.

[warrens]

7. Yup, particularly since them McMansions are unusable room anyway

My brother has one...a huge cathedral living room that costs a fortune to heat and cool, and most of the other rooms are tiny.

Those houses are going to be dogs for years to come. Particularly since most of them seem to have about five feet of land attached.

[CrispyQ]

8. Harr!

"Particularly since most of them seem to have about five feet of land attached."

My husband & I shake our heads in wonder at who spends $500k for a huge house on a postage stamp lot. Many of the McMansion neighborhoods in our area, one could stand on their own deck & reach out & shake their neighbor's hand, while he stands on his deck. :eyes:

Oh well, I guess if keeping up with the Joneses is what one is about then it is easier to do when you can look directly into their house. ;)

[kineneb]

9. uh, yep

Hubby and I are quite happy on the 1/4 acre lot, living in our double-wide manufactured home, with the $167.50/month mortgage- in California!

We were refugees from the DotCom bust, sold the house in the SF Bay Area, and bought before the prices started going up.

No McMansions for me. Although small, 1293 sq.ft. is just fine, and easy to keep clean.