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Metrostudy: New home markets everywhere “suffering badly”
An analysis of the nation’s market for new homes from Metrostudy:
“There are hundreds of housing markets, and each is on a different trajectory. ‘Some markets never experienced a price boom, and are therefore having a less severe bust, but they are all suffering badly,’ said Brad Hunter, Metrostudy’s chief economist and national director of consulting. ‘Naples/Fort Myers starts in subdivisions are off 92 percent from the peak, as of the end of the third quarter of 2008. Phoenix new-home construction is off 75 percent from the peak, while Atlanta is off 84 percent,’ Hunter said. Austin (off 49 percent) and Raleigh (off 57 percent) never had a price bubble, and it is remarkable that they are down as far as they are, Hunter said.
“‘Finished, vacant inventories are actually coming down, but they remain too high in most markets,” Hunter said. “The markets that have the most serious problems are Central Florida, with 8.9 months of finished, vacant home inventory, South Florida, with 8.3 months, Atlanta, with 8.1 months, and Coastal Los Angeles and Naples/Ft. Myers, each with 8 months.’
“These readings are all far in excess of the ‘equilibrium’ level of 1.5 to 2.5 months that is typical in a normal market, Hunter said.”
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By Old Real Estate lawyer
November 20, 2008 12:18 PM | Link to this
Today’s Sun-Sentinel headlines. “South Florida HOMEBUYERS Snap-up Great Deals” by Paul Owers.
“It’s no wonder that once-skittish buyers are jumping back into the housing market, creating a sales surge for the first time in four years.
“People are starting to say, “Wow. How much lower can prices really go?” said Brad Hunter, a housing analyst in West Palm Beach. “It’s pretty clear right now that people have a buy-and-hold strategy.”
In July, August and September, sales of existing homes rose each month by as much as 52 percent in Broward and 11 percent in Palm Beach County from a year ago, the Realtors group said. Condo sales also have been brisk over the same period.”
Now even the doom and gloom Slum-Sentinel has changed it’s tone of housing because unlike The Palm Beach Post, Paul Owers doesn’t want to write all his co-workers out of a job. See how Broward sales have surged 52% yet Palm beach sales are up only 11%. Could be the ALWAY’S NEGATIVE SPIN of The Palm Beach Post is taking it’s toll on our sales and economy. When will the editors of The Palm Beach Post stop waging war on homeowners! When will they FIRE Jeff Ostrowski and Linda Rawls!! Let’s hope it’s soon.
Even Brad Hunter has a different tone and more positive outlook in Paul Owers article. In Jeff Ostrowski’s stories Brad Hunter is always negative!Apparantly Brad Hunter will say whatever Ostrowski wants him to say for the free publicity!