Draft link for next week
Link to this post next week after making 1st pass at sales below assessed value in September 2007:
http://www.alleyinsider.com/2007/10/internet-rece-2.html
Related Articles
Draft
Oct. 2007: Foreclose petitions
topped 3,000 in Mass., 4,814 MLS listings sold during same period,
8,976 listings expired or were canceled!
Because October listing represent December closing, maybe more appropriate to compare sales in December 2007: Sales below 4,000 (3,956) or down about 20% from October 2007. Expired & canceled listings even higher: 10,982 across Massachusetts in December 2007. Those listings are now available, at approximately 5% below their last asking price in the MLS. Estimating that another 9,000 home owners have received foreclosure petitions since October 1, that puts further downward pressure on asking prices. 48,321 active listing and 38,000 in shadow inventory 67,585 MLS sales last year.
Defensive homebuying tip: The falling number of active MLS listings unstate the potential inventory of homes for sale. For each home sold in December, there were 2.7 expired and canceled listings. If petitions to foreclose continued at October pace, there are up to another 9,000 distressed homeowners who may consider in an unsolicited offer to purchase their home:
Petitions to foreclose are the first step in the foreclosure process, and do not always end in actual foreclosure. Some homeowners eventually sell their homes or refinance.
“Petitions to foreclose spiked in August, and are back up near that level in October,” Warren said. “Auction announcements and foreclosure deeds are slightly lower than in previous months, which could mean more homeowners are finding solutions before they lose their homes, or that lenders are slowing down the process. It looks like we’ll see more of the same in 2008.”
NPR: Week in review
Find sound clips on:
http://www.onpointradio.org/shows/2007/08/20070810_a_main.asp
Summer slump of 2007: For every 2 sales, 3 listings failing in MA
Two years ago, The Real Estate Cafe graphed summer sales versus expired listings in Massachusetts across a ten year period: 1996 to 2005. It’s too early to update the graph but the current tally of 8,628 expired listings during the past seven weeks exceeds the 7,457 peak in 2005, the highest of any ten week summer period graphed above (click on image for larger view). In addition to expired listings this year, there have been 4,455 canceled listings and another 2,455 withdrawn listings. That’s a grand total of 15,538 unsuccessful listings, compared to 10,136 sales during the same period.
So, for every two sales over the past seven weeks (6/30/07-8/20/07), three listings failed. That’s about 2,000 expired, canceled, or withdrawn listings per week. Unless sellers hold their properties off the market, the unfolding credit crunch could create a higher rate of failure in the final weeks of 2007.
What does that mean for potential home buyers? Two money-savings opportunities:
Expired & canceled listings: If you have had no previous contact with the former listing agent or attended any of their open houses, buyers may save money — approximately 5% of the asking sales price — by contacting owners of expired and canceled listings directly. If you’re interested in that do-it-yourself opportunity, The Real Estate Cafe would be glad to provide assistance "a la carte" on a fee-for-service or flat fee basis.
Proactive house hunting: There are thousands of homeowners getting ready to list their homes this Fall. The Real Estate Cafe would be glad to tell you how some of our recent home buyers have saved money by identifying homes BEFORE they are listed with a traditional listing agency.
Comment on America’s new debtor prisons
http://www.irvinehousingblog.com/2007/12/18/americas-debtor-prisons/
Pull quote on anyone who bought a home between 2004 and 2007 (check timeframe)
NPR Talk Show Alert: Subprime Panic
Ides of March NPR Talk Show Alert: Subprime Panic.
If you live in Greater Boston, you can listen to the live talkshow on
Thursday, March 15, 2007 from 10-11am on 90.9FM, WBUR or the
rebroadcast from 7-8pm. Elsewhere, you can also listen to the live broadcast
online at OnPointRadio.org or download the podcast at your
convenience.
See related post: Ides of March: Beware mortgage meltdown & counterfeit buyer agents and email us if you would like to participate in an upcoming "Bubble Hour" to discuss this program or other news documenting housing price trends. Please let us know if you’d prefer to chat online or in-person.
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