[FoRK] A Generalized Meltdown of Financial Institution

[Jeff Bone]

Austin comps:

We listed our house at the end of August and closed the sale on  
November 1.  Our next-door neighbors on one side listed in June and  
closed mid-August, while our other next-door neighbors listed in  
October and closed in mid-November, in part by underpricing  
dramatically.  The price / sq. ft. for our house and our earlier- 
listing next-door neighbors was roughly equivalent, while the price  
per square foot for the later-listing neighbor was about 26% less.   
These are all comparable homes, built at the same time (8-9 years  
ago) by the same builder, and in one of the most desirable  
neighborhoods in Austin.

Now, some of the 25% reduction in $ / sq. ft. is due to poor upkeep  
on the part of those neighbors plus extremely aggressive (panicky)  
pricing, but I would say that in general the area has seen a real  
decline of 15% or more in sales price just since the credit concerns  
started.  The bigger problem is a generally much longer time-on- 
market now than, say, month-over-month vs. 2006.

Regarding the jumbo loan thing, in most cases the only folks who  
can't get jumbo loans at this point are, frankly, the ones that  
should not be getting them anyway.


jb


On Nov 25, 2007, at 4:52 PM, Lucas Gonze wrote:

> Which is the entire middle class in LA, where not even a studio goes
> for less than 500K.
>
> Prices in my area have fallen 5-10% from what I can see.
>
> On Nov 25, 2007 11:59 AM, Owen Byrne <owen at permafrost.net> wrote:
>> Or in need of a jumbo mortgage.
>> Owen
>>
>>
>> On Nov 25, 2007, at 9:23 AM, J. Andrew Rogers wrote:
>>
>>>
>>> On Nov 25, 2007, at 8:06 AM, Sat N wrote:
>>>> Very interesting - I keep hearing about this "housing crash" in
>>>> California, but my friends in bay area aren't really seeing  
>>>> it....Has
>>>> any of you in bay area seen a housing crash in your neighborhood -
>>>> have the prices really went down 12% ?
>>>
>>>
>>> The market definitely seems softer, taken from people I know who are
>>> both buying and selling right now.  I don't know about a 12% drop,
>>> but a 7% drop from the peak seems about right anecdotally.
>>>
>>> In any case, it is not that big of a deal unless you are flipping
>>> houses or mortgaged up to your neck.
>>>
>>> Cheers,
>>>
>>> J. Andrew Rogers
>>>
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