Sonoma Housing Bubble

Pulling the cork out of Sonoma's bubbly housing foolishness

Wednesday, October 18, 2006

Leaving Skidmarks



"Bay Area home prices fell last month for the first time in more than four years, providing evidence that the region's seemingly unstoppable housing market could be starting to hit the skids."

"Sonoma County experienced the steepest drop in existing single-family home prices, at 8.2 percent."

Wait a minute... didn't some local REIC windbag say that buyers shouldn't be waiting for prices to drop because it wasn't going to happen? Didn't said windbag say that even in the last real estate bust that prices in the county only declined by something like 4% and that won't happen again?

Stay tuned, Baby!!! Looks like we already have doubled that decline and this can barely be called the beginning. You ain't seen nothin' yet!

(ps. advice from REIC gasbags is useful at this time if you are in need of a good belly laugh.)

"In Napa County, prices declined 6.5 percent and in Marin County, prices were off 3.3 percent."

"'This is an enormous real estate bubble, bigger than we've ever seen, and it's got to work its way out of the system one way or the other," said Christopher Thornberg, an economist in the Los Angeles office Beacon Economics, a consulting firm that focuses on the Western states."

"You've got to pay the piper."

"The Bay Area could be following other regions of the country that already have experienced a decline in prices."

'"Housing prices moved up too far, too fast relative to people's incomes,'' said Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley."

'"The affordability is worse here than most anyplace else, but San Francisco is not the only place this is happening."'

"Sellers say they are feeling the sting of a market that is no longer skewed in their favor."

'"It used to be that all you had to do is put up a 'for sale' sign in front of the house and tell people if they didn't put in an offer by a certain date, the house would be gone -- and it was," said Claudette Center, who is trying to sell a Bernal Heights home that belonged to her uncle."

"After gutting the kitchen, refinishing the floors and putting in new bathrooms, she still hasn't received any offers, and traffic at open houses has been slow, she said."

'"Last week nobody came," she said."

'"I understand that if I really want to sell the house fast, I'll probably have to drop the price," she said."

"Across the state, inventory more than doubled in the past year."

"As buyers continued to take their time, the number of all homes sold, new and existing, sank to a five-year low last month, dropping almost 30 percent from September 2005, DataQuick found."

5 Comments:

At 10/18/2006 07:53:00 PM , Anonymous tom stone said...

the quote in yesterday's pd from a broker that you should list your home at 80-100k less than the peak and expect lowball offers was the most honest public comment by a local broker i have heard.if your house is in excellent condition,and you offer 4% to the buyers agent,you might get lucky and sell it for that price.there are still plenty of inexperienced agents who will list your place too high,but they are thinning out quickly.i am looking forward to seeing what will happen with "CHANATE VILLAGE" the townhome development at mendocino and chanate in santa rosa,it appears to be built of cardboard,which is now a bit soggy from last weeks rain.are there any anonymous folks who can comment on this project?

 
At 10/19/2006 01:34:00 PM , Anonymous Anonymous said...

PLAYTIME'S OVER!

Time to pay the piper...

 
At 10/19/2006 05:13:00 PM , Anonymous Ms Hawkes said...

I've been following acreage props in Sonoma, not that I'm ready to buy, but looking for fun. More than several of these have dropped asking prices by 15-23% since June, and are still sitting. Am still astonished by the greed, though. One place sold in 11/04 for $465, and they asked $1,175M in July '06, now down to $899. Who the hell thinks they deserve $400k in less than two years?
I know, I know, anybody looking to dip a smarmy hand into a buyer's pocket. Or maybe they've got several equity loans to pay off. Sell those Humvees!

 
At 10/21/2006 08:52:00 AM , Anonymous tom stone said...

there are quite a few small subdivisions for sale in sonoma county as well.i see land prices down about 30% since spring(asking prices).i was watching a 6 point buck walk past me a cople of minutes ago,and realized i could buy an 850 sq ft condo steps from 101 for only 50% more than it costs to lease a 2000 sq ft home on 5 acres in sebastopol.prices HAVE come down! btw that is the biggest buck i have seen in this area,he has been feasting on kendall-jackson chardonnay grapes, and apples from the abandoned orchards.

 
At 10/21/2006 10:56:00 AM , Anonymous Anonymous said...

ALL FIRST TIME HOMEBUYERS BEFORE YOU BUY IN SACRAMENTO PLEASE GO TO THE SACRAMENO POLICE WEBSITE AND USE THEIR SEARCH TOOL FOR CRIMES REPORTED NEAR THE HOUSE YOU ARE LOOKING AT. YOU WILL BE SUPRISED!!!! IT ONLY TAKES A SECOND AND IS VERY INFORMATIVE. IF YOU BUY IN ONE OF THESE CRIME INFESTED AREAS AS MARKET PRICES ARE GOING FURTHER AND FURTHER DOWN, YOU WILL BE STUCK IN A NEIGHBORHOOD THAT IS CRIME INFESTED AND YOU WILL NEVER BE ABLE TO SELL YOUR HOUSE TO GET OUT!!!!!!

DO NOT LET SOME REALTOR WHORE TRY TO TELL YOU SOME AREAS ARE GOOD WHEN THEY ARE NOT. ALL THEY CARE ABOUT IS THE COMMISSION.

 

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