Sonoma Housing Bubble

Pulling the cork out of Sonoma's bubbly housing foolishness

Thursday, May 25, 2006

Real Estate With Split Personality?

"The National Association of Realtors said Thursday that sales of previously owned single-family homes and condominiums dropped by 2 percent last month to a seasonally adjusted sales pace of 6.76 million units."

"Sales of existing homes fell in April, and the price posted the smallest increase in 4 1/2 years, new signals that the nation's once red-hot housing market has cooled."

Yawn... does the real estate industry really need a dues collecting organization to officially bring up the rear riding a pinto and selling old news?

"Sales of both new and existing homes set new records for five straight years as the housing industry enjoyed a boom powered by the lowest mortgage rates in more than four decades.
However, rates have been rising this year, with 30-year mortgages climbing this week to a nearly four-year high of 6.62 percent, mortgage giant Freddie Mac reported Thursday."

"David Lereah, chief economist for the Realtors, said he expected the 30-year mortgage would keep rising and would be near 7 percent by the end of the year. He said that was consistent with his view that the country was heading for a soft landing in housing but not a crash."

"However, other economists worry that with a large overhang of unsold homes and rising mortgage rates, the industry could be facing a more severe outcome."

Ya think?

"Inventory levels are simply out of sight," said Joel Naroff, chief economist at Naroff Economic Advisors, a private consulting firm. "Something has got to give and that is likely to be prices."'

"For April, the total number of unsold homes hit a new record of 3.38 million units, which represented a six-month supply at the April sales pace. The time period needed to exhaust the current supply was the highest since January 1998."

"Lereah said the data the Realtors are collecting indicate the housing industry is still experiencing a split personality with once hot markets in Florida, California and Arizona slowing down while some housing markets which had been lagging behind the front-runners are starting to take off."

'"This is a tale of two markets. Half of the country is heating up and half the country is cooling off," Lereah said."


At 5/25/2006 11:51:00 AM , Anonymous tom stone said...

lereah is increasingly bizarre,isn't there anyone at nar that realizes he may well poison a brand that took decades to build? i do not know how many licensees are also realtors...maybe 10% at most? at a 7% trustworthiness rating by the public lereah would have to become 4 times plus as believable to equal the commander in chief of the homeland himself.....if i was a realtor i might just have a question or two about where my dues were going...

At 5/25/2006 12:15:00 PM , Blogger Athena said...

well how many realtors do you know who make sense?

I can count on one hand the number that I know who are intelligent, honest and good at their job.

Is it really always a good time to buy?

At 5/25/2006 01:21:00 PM , Anonymous tom stone said...

i know two.out of 30 or more.

At 5/25/2006 01:46:00 PM , Blogger moonvalley said...

oh yeah, and Ijust saw this Yahoo headline
Is that your dog, or David Lereah?

At 5/25/2006 02:23:00 PM , Anonymous tom stone said...

my dog DOES NOT HAVE WARTS!or are those pustules? all joking aside i see the tragedy of this bubble more and more everyday,and a lot of the people i see getting hurt are not flippers or irresponsible with their $ or their lives(lots of them too,they can find sympathy in the dictionary).

At 5/25/2006 02:34:00 PM , Blogger Athena said...

did y'all see this....? Countrywide Mortgage has some bigass insider selling going on...

14 pages of insider selling.

Insiders Selling

At 5/25/2006 03:34:00 PM , Blogger hemorrhoidforhousing said...

There was an interesting article in the Contra Costa Time Business section this morning doing the same double speak. They attempt to report the bottom is falling out of the market but give the last quote to a Real Estate person to talk up the market.

The media and Real Estate people can't have it both ways. An up market is a sellers market, a down market is a buyers market. Either way the Real Estate people try to come out looking like somebodies hero.

At 5/25/2006 06:04:00 PM , Blogger moonvalley said...

Just came home from running errands and I heard two boxboys at the Sonoma Market discussing RE.
Sez one to the other:
"Yeah, i'm gonna get me a RE license"
2nd boxboy said:
Ist Boxboy:
"There are some crazy ladies inthose RE offices. Crazy ladies."

At 5/25/2006 10:52:00 PM , Anonymous Anonymous said...

Finally, a sensible reason to become a Realtwhore... Milf hunting boxboys... and to think, the circus hasn't really hit its stride, yet

At 5/25/2006 11:36:00 PM , Blogger Athena said...

bwahahahaha... and I always thought the reason some women became realtwhores was to find men with money and a man buying a house gave them the ability verify their financial package more so than picking them up in bars! ;-)

At 5/26/2006 01:05:00 PM , Anonymous tom stone said...

athena,real estate ladies have earned a "certain reputation"...a lot of them are bored married women,they can have lunch with girlfriends and write it off,have a little fun and get a listing at the same time...1.5% of 600k is not bad for a few minutes work...not all are like that of course but more than enough to create the reputation.gotta go time to blow up more yellow happyface balloons.

At 5/26/2006 05:05:00 PM , Blogger moonvalley said...

hehehe...there are certain restaurants in town where most Fridays the RE ladies can be found having extremely liquid lunches. I keep thinking of the scene in American Beauty where Annette Benning strips down to clean the house before she has her open house.
And then there's Buddy Kane the RE "King" and a scene that will not be mentioned, but could be a quote on any RE bus bench.

At 5/26/2006 06:13:00 PM , Anonymous tom stone said...

moon valley,check out yesterday's matier and ross column in the sf chronicle suzanahjuras a realtor, was not running a sex club for her clients,but some of the wives were upset at the solicitations their husbans recieved at the claremont country club...apparently these important men were paying hundreds of dollars to have a young woman look attentive while they smoked cigars ,bloviated,and sipped whiskey.

At 5/26/2006 10:55:00 PM , Blogger Athena said...

MV... we are going to have to scope out a couple of those liquid lunch places and see what kind of scoops we can get. ;-)


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