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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (38069)	8/7/2005 9:08:30 PM
From: CalculatedRisk	Respond to of 110194

OC Housing: "... with interest rates creeping upward and the affordability index falling, we are finding that most buyers cannot afford higher prices. The previous sellers market has become more neutral, home listings are staying on the market longer and buyers have been able to negotiate lower prices. In fact recent sale prices have been about $20,000 below the asking price in recent months. Market inventory is still low, so I hesitate to say it is becoming a buyers market. I would say it is at least neutral with a slight edge to buyers, especially in the higher price range market." realtytimes.com

To: Ramsey Su who wrote (38069)	8/7/2005 10:38:02 PM
From: russwinter	Read Replies (3) \| Respond to of 110194

Downtown San Diego recently opened three new buildings: Park Blvd. East, La Vita, and Trellis totalling 560 units, and MLS now has 64 listed from flippers for sale from those buildings. I counted 90 others that have been sold by flippers earlier, so nearly 28% of these new units go on the market. Counted 1,198 new units that will open in downtown San Diego between now and year end, so using the same ratio, we might expect over 300 of those to be listed for sale? Market has only averaged 13 pending sales per week over last seven weeks after subtracting falls from escrow, so that bodes very poorly. Again, why would someone buy new construction when the game is pre-construction flipping using small deposits? Inventories will continue to pile up quickly in this canary in the mine shaft.