January 16, 2007
– Comments (3)
Stupid liberal media consipracy!
Great tidbit here:
Take the owner trying to sell a spacious two-bedroom condo for $879,000 in the former Columbia Hospital for Women, which closed in 2002, in the Foggy Bottom neighborhood of Washington. In 2004, the investor was so confident that he would make a handsome resale profit that he told his agent, Thomas P. Murphy, he wanted to buy five condos. Mr. Murphy said he flatly told his client he would only assist him in purchasing one unit in any one building.
He needs $890,000 to break even, but the offers are at $800,000 to $840,000,” Mr. Murphy said. “He does remember that I told him he was not getting five of them.”
OK, I just can't pass up this next tidbit:
At the end of 2006, 24,200 units were on the market in the Washington area, up from 13,000 at the start of 2005. Sales have slowed to 663 in the fourth quarter of 2006 from 3,520 in the first quarter of 2005, according to Delta Associates. Recorded prices have been flat, which probably masks an effective decline since only the most attractive properties are selling and many owners throw in extra inducements that do not show up in official figures.
Do that math. At the last quarter's sales rate, there are 9 YEARS worth of condos on the market in DC.
Now there's a housing market upturn built on healthy fundamentals, right NAR?
Soft landing? Who's gonna wait years to sell these condos? Prices have been flat so far only because people are anchored. When the margin calls -- er, mortgage rate resets and subsequent foreclosures come -- prices will tank, HARD.
Here's what I want to know: How many of the prior cited quarter's 3,500 sales were REAL sales, to people who wanted to live in them, rather than sales to amateur flippers hoping to make a buck in the no-lose world of real estate?
Look at pwer-its busting out