Posted today over at MSNBC - sometimes viewed as a source of “news”, I found this tidbit. It looks like we’re gonna get bailed out by the Canucks! Phew
CHANDLER, Ariz. - Two hours after his flight landed in Phoenix, Calgary resident Doug Farley already was cruising the city’s vast stuccoed suburbs in search of the one attraction Canadians cannot seem to get enough of these days: cheap homes.
There are thousands of them here: almost new, unoccupied and dropping in value. The mortgage meltdown, combined with a surging Canadian currency, has Farley — and many of his countrymen — dreaming of winter golf on grass that’s always green.
“My dollar’s the same as your dollar, finally,” Farley said, grinning as he peered through a pool fence at a sparsely populated condominium complex in Chandler, a Phoenix suburb
For moderate-income Canadians like Farley, the race is on to take advantage of the “loonie,” which in September reached parity with the U.S. dollar for the first time since 1976. Many are combing the Internet for anxious American home sellers and looking with an investor’s eye at the condos they rented while on vacation in sunbelt states.
and guess what.. they’re nice too, cuz they’re Canadians! (note, I am not making fun of Canadians here. Just the writer)
“Fifteen of my friends are on buying trips down here, and we’re all cheap,” Sirockman said. He brought his family to Scottsdale this month while he submitted a lowball all-cash offer for a three-bedroom home.
“I don’t want to take advantage of a guy who’s having trouble in the market and is losing his shorts,” Sirockman said. “But I have no problem with a guy from California who bought on spec and has five houses in Arizona and never lived in them.”
The reporter must have been working on this story for, oh say a month or so. Might not have noticed what’s been going on with the loonie the past couple of weeks. If they’re going to save us, they better hurry!
You thought it was over, but oh no. It is not. December 2007: $1,650,000 (Flipping?!?)
I kid you not. February’s buyers have now put this beast back on the market, at nearly 30% over what they paid for it just ten months ago, and $25,000 over the previous owner/builder’s original ridiculously high asking price last summer.
Just for laughs, here is the description in the MLS this time around:
Amazing NW Craftsman Lodge-style home. 3+private acres! Soaring high ceilings announce the entertainment size entry with Brazilian Cherry wood floors flowing into the formal dining room and beyond giving a spectacular entrance. A cozy library greets you, next to a living room/flex room. The Master Suite has a territorial view, fireplace,jetted-tub,and glass block shower. Seperate [sic] Nanny’s quarter’s and bedrooms +. This is a ‘must see’ and too wonderful for words. Come experience this grand home!
I can think of something to describe as “soaring high,” and it’s not the ceilings.
Good luck with this one, you’re going to need it. Badly.
Update [03.22.08]: Price reduced to $1,590,000. Keep going…
I got this in the mail earlier this week, and just had to share. Houses are still cheaper than latte’s, apparently…
Deejayoh
addendum:
I clicked through to the site that the postcard directs you to. The “bonuses” are pretty significant relative to the starting prices, it seems to me
Although I have noticed homes dropping off the market in my neck of the woods in Snohomish Co, generally speaking, for semi-serious sellers, early and mid-October is a bit soon to pull the property off the market. I can understand if it was during the full holiday season from a few days prior to Thanksgiving through New Years. But, if you pull out this soon, the potential for back-firing increases if the thought process is “I’ll try again after the Holidays.” Many others will do the same. Maybe a Realtor can chime in on the efficacy of this reasoning.
I have a sense though that some of these homes going off the market today, either by expiring, Realtors giving back the listing, or mutually taking the home off the market, are being replaced by others. No hard Data, but maybe a Realtor can confirm this.
That being said, one of the things I’ll be curious to follow is if inventory as a whole (system wide) drops without replenishment. If we maintain the current inventory levels going forward, then I would guess the region will be in for quite an increase after Jan. 1, 2008. If that happens, then we will see further downward pressure on prices. It is also important to not forget about the underground market of FSBO’s. I read somewhere that this market is roughly 10% of the inventory/sales that are not accounted for by regional MLS statistics across the country. So in theory, there are a lot more homes on the market than reported.
Remember, many agents suggest to their clients that they can try again after the New Year. All these homes that expired or were mutally taken off-market will come back on the market with the same agent or another real estate company. And, all those reading about market struggles across the country who are holding off until after the first of the year are going to be competing with like-minded-soon-to-be sellers. On balance, my sense is that we are going to see a lot more inventory come on the market after the year.
The list price reductions appears to be on cruise control right now, along with incentives for closing cost contributions, rate buy downs, etc..
Over at Rain City Guide, Rhonda Porter mentioned that 30 yr fixed rates are now under 6% again. That is probably going to move some folks to write earnest money checks for a purchase or refinance.
Musings
I went to the Everett Silvertips game last week with Steve Hatloe of very long time Everett business institution Hatloe’s Interiors/Carpet One. Naturally his business is also dependant upon housing and household improving. Prior to the game he asked me about if he was the only one ‘out there’ who thought to himself, “how are people doing it?” I looked back and said, “gosh, that makes two of us. But, since you asked………”
Someone asked me a while ago what it’s like to be in escrow? I said, “like a referee.” We try to make sure everyones obligations are met, but sometimes the referee get’s the ire of one’s temper.
Continuing The Tim’s trend of quick posts, I thought I would add this to the flurry of news today. King5 ran a news piece last night that is summarized in this article, entitled Home sellers upping incentives in crowded market
The piece quotes Reba Haas, one of the contributors over at Rain City Guide. She is quoted as saying:
“There’s too many people coming here for us not to have it continue to be strong,” said Haas.
Let’s see how that statement stands up to reality. Here is the most recent report on immigration from the Washington Department of Licensing.
Wow. Looks like the number of people coming to Washington is actually off 21.6% year over year. Perhaps some fact checking is in order?
Posted by S-Crow on September 26th, 2007 at 5:11 PM · 6 Comments
Today I was shopping for a large capital expense item for the office and met with a software vendor and the owner of a hardware dealer up in the Everett area. The software vendor was showing his wares in a presentation and his accent was thick. Obviously the gentleman was from Britain. He asked what line of work I was in. I said, “escrow business.” Anyway, that broke the ice big time and we all must have talked for about 30 minutes straight about the real estate market GLOBALLY. This gentleman from England can’t sell his place, can’t refinance because of lender tightening there as well and…..drum roll please…..guess who his lender is?
