Housing activity is all about price = New report highlights quarterly sales activity based on list prices

[mEDITate-OR:
assume that Them There Coyotes would be better off if they were in Canada..
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JGBHimself

Feb-27 @ 2:17 PM

First, thanks Craig, and to AZRMLS for finally providing these numbers, that ASU and others have ignored. For them there were no dogs anywhere in Arizona, bcuz they couldn't seer them, or hear them bark. They probably assumed all that howling was by Them Coyotes, looking for some/any/one to buy a new home for or from them.

What this chart show U.S. is what insiders knew, that while everybody was looking at cash investors buying up the lowest of the REO-foreclosed homes, the rest of U.S. were being gang tackled on the way to first base. Might be the right game, but wrong ballpark.

When W "nationalized" FMae&FMac, they also increase the RE loan limits for both FMae&FMac, who were making more than 85% of all RE loans. Without that source of loan money there would have been even more pain to those just above the old limits. To buy a loan for a new purchaser they would have had to cut their prices to below the old limits. Or, purchasers would have had to come up with huge down payments.

What none of U.S. expected to see is home values, according to AZRep MsC this week, drop almost 62% in four years. However, that also meant that MANY more homes, with substantially reduced prices, COULD obtain financing. But, as you point out for homes above the current limits there still is no financing, anywhere, at any reasonable price. So too for condo sales - new or existing.

What is currently being demanded in the House/Congress by most R's is an immediate cut in all RE loan limits. What that will do is drive DOWN the availability of home loans, and force those below the current limits and above the new lower limits, to choose between substantially cutting your price, again, or not being able to sell your home. An ugly choice.

Look at the US$500k line = below there are 7 times the sales, 4 times the listings, 3/4th the time on market & half the months supply.

Move up another US$ 250k = sale drop by another 1/3rd, listings drop by another 1/2, days increase by another 25% and supply almost doubles again.

This is a bifurcated RE market - between those who can sell, and those who simply cannot. And, the House/Reps proposes to make this even worse

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Price range	Q4 homes sold	Q4 active listings	Average days on the market	Months' supply of inventory
$30,000-$100,000	6,253	32,143	95	5.1
$100,001-$250,000	8,067	47,099	103	5.8
$250,001-$500,000	2,850	16,767	122	5.9
$500,001-$750,000	393	4,496	161	11.4
$750,001-$1,000,000	135	2,623	198	19.4
$1,000,001-$1,500,000	89	1,792	207	20.1
$1,500,001-$2,000,000	34	1,089	344	32
$2,000,001-$3,000,000	32	994	404	31
$3,000,001 and up	12	708	436	59

Source: Arizona Regional Multiple Listing Service
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Housing activity is all about price
New report highlights quarterly sales activity based on list prices
http://www.azcentral.com/arizonarepublic/business/articles/2011/02/27/20110227biz-insider0227anderson.html
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