I heard an ad for a mortgage company on the radio this morning that had the following line:
We can approve you from your car (i.e. – over the phone). Getting a home loan should be as easy as ordering pizza.
It’s because of companies with that kind of philosophy that we’ve gotten into this mess.
My coworker that was selling his Northgate-area house was finally successful. When I asked him about it a few weeks ago, he told me that it sold for $460,000 — just 3% below his original asking price. But, according to the Excise Tax Affidavits Report, it sold for $410,000 — $65,000 (14%) below his original asking price, and even $15,000 below his final asking price. Hmm…
I like meshugy’s suggestion:
Since the MLS #s for April will be out on Friday, I think it’d be fun if everyone made some predictions.
However, I don’t think I’ll be very good at guessing such things, since that would require understanding the mind of today’s home buyers—who obviously aren’t basing their decisions on logic or reasoning. Despite that, here’s my guess for the "residential only" category. Listings flat compared to April ’05, pending sales down 10%, median closing price $408,000.
My comment on RCG was rescued from the bit-bucket, but still has not been responded to by Ardell the Eastside realtor, save for an email in which she explained that she hadn’t had time to respond yet because she was busy closing a deal. She did respond to another commenter (that used the name "Of course") who asked:
PS. Ardell can you point me to some stats (with a link) that show that a “family” is not a first time home buyer?
Thanks.
Her response:
Of course, I’m assuming that was a "tongue in cheek" question :-) My stats over 16 years. About half of my clients have been first time buyers and only one of those was a family with children and they were only in this country a short time. Since I’ve sold in five states since 1990 I can’t "point to the stats". I have had first time buyers who were not young, in their 40’s, but they were single. Just my personal experience.
In my experience, I have had families with two children move from a two bedroom condo to a townhome. Oops, forgot my friend Lori. She rented with her husband and three children until her husband passed away. Then she bought a home, cash, with his insurance money.
So there you have it, if you don’t get a house before you have kids, you can forget ever getting one at all (unless you happen upon an insurance windfall). I kid.
Seriously though, if housing prices five years from now aren’t on a major trend toward more sensible levels, Missouri may be calling my name.