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BabyAvocado
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CNNMONEY: Homes sit longer on the market
Stuck! Homes sit longer on the market
It's taking longer to sell a house these days. Is this another sign that the boom is over? By Les Christie, CNNMoney.com staff writer June 27 2006: 5:28 PM EDT
NEW YORK (CNNMoney.com) -- The tell-tale sign of a stagnating real estate market? When homes for sale start lingering - and that's exactly what real estate brokers and other industry watchers say they're seeing now.
The National Association of Realtors does not maintain national time-on-market figures. But inventory - the number of homes for sale - spiked 37 percent for the 12 months through April 30, the most recent data available.
Homes are staying on the shelf longer. Languishing in hot markets There are no official regional statistics for the time homes spend on the market. Here are estimates for local brokers. Market Time on market Up from Hanover, NH 125 days 65 days Napa, CA 60 days 10 days Phoenix, AZ 60 days 7 days Miami, FL 35 days 20 days At the same time, the rate of sales has slowed, so that there is now 6 months worth of supply, up from 4.1 months a year earlier.
All that supply means homes are sitting around longer and that sellers are asking more than buyers are willing to pay -- an indication that prices may have to come down.
"Sellers are in denial, and there is a rising disconnect with the buyers," said Jonathan Miller, a real estate appraiser in New York. "Until sellers get the message, you'll see a drop in the number of transactions."
Philadelphia has seen only a modest run-up in time-on-market from about 23 days last year to a still low 33 today. But the city's inventory has grown from nearly 21,000 last year to more than 36,000 today, a more than 50-percent jump.
"The sales pace is identical, but inventory is way up," says Harry Caparo, who runs Coldwell Banker Preferred in Philadelphia. "Time-on-market is going to start to rise."
Two markets The cool or steady markets seem to be maintaining their equilibrium. David Barnes, a broker in Nashville, Tennessee, says time-on-market there has risen modestly this year to around 75 days from 65 days.
Carolyn Heimlinger, a broker in Des Moines, says the figure there is about 82 days, up from 75 days a year ago. Prices have flattened but not dropped. "Where I see concessions is new constructions," says Heimlinger. "Developers now offer rebates and free upgrades."
In Charlotte, N.C., Wallace Perry, president of Coldwell Banker United for the area, says time-on-market hasn't changed much, at 85 days to 90 days. "It's a very good sign that the market here is holding steady."
But in once superheated markets, things have gotten tougher.
In Hanover, New Hampshire, broker Ned Redpath reports a "drastic" increase in time-on-market.
All through the 2000s, New Hampshire averaged double-digit price increases and about 60 to 70 days on market. Now Redpath estimates average time-on-market at 125 days. He expects price changes to soon reflect that.
"The longer a listing is on the market," he says, "the more the price will come down."
In once white-hot Napa, California, Coldwell Banker broker Doug Fowler reports an increase to between 60 days and 90 days, where they once were a week or two. He thinks the long-term prospects for Napa are fine, but the area could see short-term adjustments.
Boston time-on-market has gone from 52 to 58 days, according to Susan Hsu, a RE/MAX broker.
In Phoenix, according to Valley Wide Homes broker Ron Wilczek, time on the market was often less than a week in 2005. Now it's approaching 60 days.
And in Miami, the time-on-market has lengthened to between 30 and 40 days from about 20 just a few weeks ago, according to Mario Tome, of Greater Miami Realty.
All this is evidence that the real estate boom may have run its course in many hot markets. At the very least, sellers will have to set their prices very carefully if they want to move their properties quickly and avoid long months of having their houses spending time-on-market.
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Posted 6/28/06 9:47 AM |
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SweetestOfPeas
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Re: CNNMONEY: Homes sit longer on the market
HA! that's exactly what I SAID!
"Sellers are in denial, and there is a rising disconnect with the buyers," said Jonathan Miller, a real estate appraiser in New York
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Posted 6/28/06 9:48 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name: Beth
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Re: CNNMONEY: Homes sit longer on the market
Posted by SweetestOfPeas
HA! that's exactly what I SAID!
"Sellers are in denial, and there is a rising disconnect with the buyers," said Jonathan Miller, a real estate appraiser in New York
so true-
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Posted 6/28/06 9:50 AM |
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SweetestOfPeas
J'taime Paris!
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Re: CNNMONEY: Homes sit longer on the market
Posted by Beth1210
Posted by SweetestOfPeas
HA! that's exactly what I SAID!
"Sellers are in denial, and there is a rising disconnect with the buyers," said Jonathan Miller, a real estate appraiser in New York
so true- sellers that got their houses appraised last year or even 6 months ago are counting on that number to sell their house... that # is no longer valid.
Message edited 6/28/2006 9:54:15 AM.
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Posted 6/28/06 9:53 AM |
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Ang-Rich
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Re: CNNMONEY: Homes sit longer on the market
It's a sign of the times...but everyone knew that the bubble would have to burst sometime. I think the first signs hit Suffolk a while ago and have started to work west into Nassau. I'm not sure that it has hit NYC just yet - but it will at some point.
Hopefully, buyers will start to see the prices come down but we have to be realistic...it will take a lot longer for sellers to accept that the market has changed. Understandable in one way...just months ago the market was hot and people were getting more than their asking price. Sellers on the tail end of that will have a hard time accepting that they missed out. But they will at some point. At the same time...I can't help but wonder if sellers will now start to renovate their homes in an effort to make it more attractive. I have found that to be a huge problem recently...homes that need so much work. But again..it all goes back to the mentality that a few months ago people were buying handyman specials for crazy amounts. I think we will see things line up in the buyers favor in the next few months. Interesting to see these changes.
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Posted 6/28/06 9:59 AM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
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Re: CNNMONEY: Homes sit longer on the market
Posted by Ang-Rich
It's a sign of the times...but everyone knew that the bubble would have to burst sometime. I think the first signs hit Suffolk a while ago and have started to work west into Nassau. I'm not sure that it has hit NYC just yet - but it will at some point.
Hopefully, buyers will start to see the prices come down but we have to be realistic...it will take a lot longer for sellers to accept that the market has changed. Understandable in one way...just months ago the market was hot and people were getting more than their asking price. Sellers on the tail end of that will have a hard time accepting that they missed out. But they will at some point. At the same time...I can't help but wonder if sellers will now start to renovate their homes in an effort to make it more attractive. I have found that to be a huge problem recently...homes that need so much work. But again..it all goes back to the mentality that a few months ago people were buying handyman specials for crazy amounts. I think we will see things line up in the buyers favor in the next few months. Interesting to see these changes.
Ang, I SO hope you are right!!!!!
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Posted 6/28/06 10:00 AM |
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Selden78
I lvoe the fall :)
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Re: CNNMONEY: Homes sit longer on the market
I think people are asking for 2 much $$ for the homes and no one can afford that hight price right now
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Posted 6/28/06 10:04 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name: Beth
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Re: CNNMONEY: Homes sit longer on the market
Posted by Selden78
I think people are asking for 2 much $$ for the homes and no one can afford that hight price right now
and people fear that the prices are going to drop even more- and then they (the buyer) is going to be stuck with a house worth less then what they paid for it
this things go in cycles- just like the stock market made a correction 4/5 years ago- the real estate market will also
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Posted 6/28/06 10:10 AM |
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Selden78
I lvoe the fall :)
Member since 6/06 3543 total posts
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Re: CNNMONEY: Homes sit longer on the market
Posted by Beth1210
Posted by Selden78
I think people are asking for 2 much $$ for the homes and no one can afford that hight price right now
and people fear that the prices are going to drop even more- and then they (the buyer) is going to be stuck with a house worth less then what they paid for it
this things go in cycles- just like the stock market made a correction 4/5 years ago- the real estate market will also
realy do you think the value will drop ??
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Posted 6/28/06 10:29 AM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name: guess
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Re: CNNMONEY: Homes sit longer on the market
Posted by Selden78
realy do you think the value will drop ??
I don't think value's will drop but I don't think they will inflate at the rate they had been. Home sales are up 4.5% from last month...so people are still selling and buying.
I also think it's hard to gauge the market - wrt what's been sitting and for what reason. A lot of people are waiting for that "magic #"...and if they don't get it, thy're not moving. They're not serious seller's...and they're clogging up the inventory, imo.
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Posted 6/28/06 10:32 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name: Beth
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Re: CNNMONEY: Homes sit longer on the market
Posted by Selden78
Posted by Beth1210
realy do you think the value will drop ??
not me so much as my DH- he is in the mortgage business and has a excellant understanding of all of the factors involved
houses are over valued on LI- look at the one just posted in Seaford for $400K- it has 1 bathroom
the first 6 years of the mortgage you are only paying off the interest- so if you don't plan on staying in the house forever- and the prices drop $20K- you will owe $20K more then your house is worth
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Posted 6/28/06 10:33 AM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name: Diana
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Re: CNNMONEY: Homes sit longer on the market
I know the rates have increased but not by much. Will we see houses that are 200k again in the near future? I would be afraid to see that????? 1
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Posted 6/28/06 10:50 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name: Beth
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Re: CNNMONEY: Homes sit longer on the market
Posted by schnapy
I know the rates have increased but not by much. Will we see houses that are 200k again in the near future? I would be afraid to see that????? 1
I don't houses are going to drop that much- that would destroy the economy
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Posted 6/28/06 10:56 AM |
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MegZee
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Member since 5/06 8777 total posts
Name: Meaghan
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Re: CNNMONEY: Homes sit longer on the market
Posted by Colleen9304
Posted by Selden78
realy do you think the value will drop ??
I don't think value's will drop but I don't think they will inflate at the rate they had been. Home sales are up 4.5% from last month...so people are still selling and buying.
I also think it's hard to gauge the market - wrt what's been sitting and for what reason. A lot of people are waiting for that "magic #"...and if they don't get it, thy're not moving. They're not serious seller's...and they're clogging up the inventory, imo.
that was new home sales, for the entire country.
Existing home sales decreased 1.2% in May.
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Posted 6/28/06 10:59 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name: Beth
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Re: CNNMONEY: Homes sit longer on the market
Posted by Meaghan729
Posted by Colleen9304
Posted by Selden78
realy do you think the value will drop ??
I don't think value's will drop but I don't think they will inflate at the rate they had been. Home sales are up 4.5% from last month...so people are still selling and buying.
I also think it's hard to gauge the market - wrt what's been sitting and for what reason. A lot of people are waiting for that "magic #"...and if they don't get it, thy're not moving. They're not serious seller's...and they're clogging up the inventory, imo.
that was new home sales, for the entire country.
Existing home sales decreased 1.2% in May.
I didn't think the 4.5% number could be correct
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Posted 6/28/06 11:03 AM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name: Diana
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Re: CNNMONEY: Homes sit longer on the market
Posted by Beth1210
Posted by schnapy
I know the rates have increased but not by much. Will we see houses that are 200k again in the near future? I would be afraid to see that????? 1
I don't houses are going to drop that much- that would destroy the economy
But I think some people believe that... They will plateau out and level off.
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Posted 6/28/06 11:07 AM |
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SweetestOfPeas
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Re: CNNMONEY: Homes sit longer on the market
according to CNN Money (and other sources), LI is 44% OVER valued
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Posted 6/28/06 11:19 AM |
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BabyAvocado
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Re: CNNMONEY: Homes sit longer on the market
Posted by SweetestOfPeas
according to CNN Money (and other sources), LI is 44% OVER valued
I believe that!
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Posted 6/28/06 11:48 AM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name: Diana
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Re: CNNMONEY: Homes sit longer on the market
Posted by SweetestOfPeas
according to CNN Money (and other sources), LI is 44% OVER valued
I dotn think only LI I think all of the NY metropolitan area too.
You cant tell me a house in queens with only a 20x80 lot attached house is worth over 500k either?
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Posted 6/28/06 11:53 AM |
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SweetestOfPeas
J'taime Paris!
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Re: CNNMONEY: Homes sit longer on the market
Posted by schnapy
Posted by SweetestOfPeas
according to CNN Money (and other sources), LI is 44% OVER valued
I dotn think only LI I think all of the NY metropolitan area too.
You cant tell me a house in queens with only a 20x80 lot attached house is worth over 500k either?
yes, it was the NY metro area, not just LI.
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Posted 6/28/06 12:08 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name: guess
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Re: CNNMONEY: Homes sit longer on the market
Hmm, guess I heard the report wrong - sorry
Posted by schnapy
Posted by SweetestOfPeas
according to CNN Money (and other sources), LI is 44% OVER valued
I dotn think only LI I think all of the NY metropolitan area too.
You cant tell me a house in queens with only a 20x80 lot attached house is worth over 500k either?
That's all about location
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Posted 6/28/06 12:09 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name: Meaghan
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Re: CNNMONEY: Homes sit longer on the market
Posted by schnapy
Posted by Beth1210
Posted by schnapy
I know the rates have increased but not by much. Will we see houses that are 200k again in the near future? I would be afraid to see that????? 1
I don't houses are going to drop that much- that would destroy the economy
But I think some people believe that... They will plateau out and level off.
it wouldnt destroy the economy - people shouldnt be using their houses an investment - its a home, first and foremost. if you want to get a rental as an investment, than fine. Your primary residence shouldnt be your entire nest egg.
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Posted 6/28/06 12:14 PM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name: Diana
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Re: CNNMONEY: Homes sit longer on the market
Yeah so how can they say LI is overvalued at 44%. I think all of NY is overvalued.
THe prices are def insane..
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Posted 6/28/06 12:15 PM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name: Diana
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Re: CNNMONEY: Homes sit longer on the market
Posted by Meaghan729
Posted by schnapy
Posted by Beth1210
Posted by schnapy
I know the rates have increased but not by much. Will we see houses that are 200k again in the near future? I would be afraid to see that????? 1
I don't houses are going to drop that much- that would destroy the economy
But I think some people believe that... They will plateau out and level off.
it wouldnt destroy the economy - people shouldnt be using their houses an investment - its a home, first and foremost. if you want to get a rental as an investment, than fine. Your primary residence shouldnt be your entire nest egg.
Umm if houses fell to 200k, and rates jumped top 12% it would be HAVOCCCCCCCCCC. The market would wack out....
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Posted 6/28/06 12:16 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name: guess
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Re: CNNMONEY: Homes sit longer on the market
From what I understand, CA has it a lot worse than we do...so we should be grateful
If people are buying, who deems it "over valued"?
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Posted 6/28/06 12:16 PM |
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