We talk a lot about the Phoenix housing market, but we rarely mention the market for the dirt underneath. I thought Doomers would appreciate this update from M:
Here’s a quick update on land parcels. It’s a disaster…worse than housing. Ever since the builders started "dumping" all their land and options, prices and volume have "fallen off a cliff".
SOLDS (LAST 30 DAYS) 247
ACTIVES 10,982
Absorption ratio measured in YEARS!!! Three years and eight months….in case you were wondering. As you would expect, most commercial and infill residential lots are doing OK, the glut of inventory is in the outlying areas.
M
Location is going to make a huge differernce in how well the value of a land parcel will hold up. Still, with that sort of inventory, expect downward pressure on prices for at least the next couple of years.
[Thanks M, your updates are always appreciated!]
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this post is including a nice chart from phoenix (case/shiller index)
http://immobilienblasen.blogspot.com/2007/03/grim-reality-pimco.html
I am not only seeing prices fall off the cliff, I am also watching buyers get within a week of closing only to have the mortage company call them and say “You know that loan we promised you, yeah, we no longer offer that product. Sorry, but good luck in your new home”. As hard as it is to move product, to have price fall out and limited lending, we are far away from recovery in the market.
– The Open House Network – ROpenHouse
ROpenHouse-
L showed me that on a daily basis, it looks like pendings have plunged in the last week or so.
It’s too soon to hazard a guess how tightening lending standards are going to affect the market. I have seen estimates of a 20% reduction in buyers. Based on what we’ve seen in the past couple of weeks, I think that might be conservative, although there is a possibility that lenders may ease up just a bit after the initial panic.
Gotta love the Fed Chaiman “housing will not have a adverse effect on the economy” This guy should go into weather forcast business after he gets the ax for being blind,dumb, and in somebody’s pocket?
I hate to say this but Bernanke must not know his business whatsoever. What intelligent person would become CEO of a corporation knowing it would be going down the tubes? He couldn’t even see this mess on the horizon.
SteveC-
You gotta wonder. Who takes a job at the Little Big Horn, no matter what the pay?