Comments on: Record Declines in Home Prices Continue

By: Bob A

Bob A — Wed, 26 Mar 2008 04:12:08 +0000

I don’t know about other areas but I do no that asking prices on a lot of unsold new homes in the greater Microsoft area near Seattle dropped 10% last week after the Bear Stearns debacle.

By: Paul Jones

Paul Jones — Wed, 26 Mar 2008 01:46:37 +0000

When it is cheaper to buy than to build new, prices will stabilize.

By: blin

blin — Tue, 25 Mar 2008 20:51:12 +0000

Dee,

I found a chart that speaks volumes.

We still have along way to go to the bottom.
Prices should decelerate for the next couple years… speculators should stay away unless the deal is too good to pass up.

http://bp0.blogger.com/_pMscxxELHEg/R-k6W9DCIVI/AAAAAAAABwo/HTSDDSu1vKk/s1600-h/CaseShillerRealJan2008.jpg

By: Boiled Frog

Boiled Frog — Tue, 25 Mar 2008 18:24:57 +0000

Hey Rob – I read a post a couple of days ago from a guy from Seattle asking how we could be in a recession when there are all these cranes putting up new buildings. It made me think about those Channelside condos. There is still a ton of work being done around town. I can look out my window at Rocky Point and see a crane right now.

By: Dee Leverage

Dee Leverage — Tue, 25 Mar 2008 17:14:26 +0000

Blin,

I updated it in my head…it probably hit 205 and now sits at 180 or so…has to get to 110 to still be at high levels (40% drop). To get to an average market, it has to drop 50%…if it overshoots, it will drop 60%.

By: JustinTheSkeptic

JustinTheSkeptic — Tue, 25 Mar 2008 16:50:51 +0000

Time to buy the home builders! lol

By: rob

rob — Tue, 25 Mar 2008 16:35:06 +0000

Hi Boiled, I’m over in St. Petersburg so we are seeing a lot of the same things.

Was not surprised that those Channelside condos went under, me and my friends had been predicting it for two years.

By: blin

blin — Tue, 25 Mar 2008 16:33:57 +0000

Dee,

I have seen that chart before…that is probably ok, it just has to be updated…it is about a year behind.

It’s a good chart since it is adjusted for inflation.

By: Boiled Frog

Boiled Frog — Tue, 25 Mar 2008 16:28:59 +0000

A lot of the cheaper condos in florida on the market now are apartment conversions, waste of money.

Posted by: rob | Mar 25, 2008 11:42:01 AM

Bingo…Here in Tampa over the last few years you could drive past an intersection near an apartment complex without some guy waving a sign about luxury condos. I wonder what will happen to all those apartment complexes now?

Also, those guys with the signs have all been replaced by new signs for getting out of debt… quite a microcosm down here.

By: Dee Leverage

Dee Leverage — Tue, 25 Mar 2008 16:21:23 +0000

Therefore, if someone could provide a chart of the home prices over the last 6-7 years, that would be a good starting point. Expect home prices to retreat all the way back to the base of the move.
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Scroll up..I did it earlier…absolute bare MINIMUM drop I will consider is 40% from today’s level.