Steve and Jen bring you this daily review of the news
Premium Advertiser

News Blog Sponsors

News Links

BBC World Service
The Guardian
Washington Post
Iraq Order of Battle
NY Times
LA Times
ABC News

Blogs We Like

Daily Kos
Digby's Blog
Operation Yellow Elephant
Iraq Casualty Count
Media Matters
Talking Points
Defense Tech
Intel Dump
Soldiers for the Truth
Margaret Cho
Juan Cole
Just a Bump in the Beltway
Baghdad Burning
Howard Stern
Michael Moore
James Wolcott
Cooking for Engineers
There is No Crisis
Whiskey Bar
Rude Pundit
Crooks and Liars
Amazin' Avenue
DC Media Girl
The Server Logs

Blogger Credits

Powered by Blogger

Archives by
Publication Date
August 2003
September 2003
October 2003
November 2003
December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
August 2004
September 2004
October 2004
November 2004
December 2004
January 2005
February 2005
March 2005
April 2005
May 2005
June 2005
July 2005
August 2005
September 2005
October 2005
November 2005
December 2005
January 2006
February 2006
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
Comments Credits
Comments by YACCS
Thursday, October 05, 2006

My house flipped me

He has a better chance
of being governor of Ohio
than you do of selling your house.
And he's down 20 points.

Americans lament too many homes on the range

Property prices have slumped - and realtors say there's more to come

Ashley Seager in Boston
Thursday October 5, 2006
The Guardian

If you want to sell a home in New England these days, you have to offer some pretty fancy incentives. You may redecorate the place, offer to buy new furniture or even crates of fine wine. In the end, though, you may simply have to slash your price.

The United States woke up last week to the first year-on-year nationwide fall in the average price of a house - something that has not happened since 1993.

Article continues
The trouble is, for those in the country's north-east, prices have been falling since the spring and were down 6.1% in the year to August, according to the Massachusetts Association of Realtors, compared to a more modest 1.7% for the US as a whole.

Home sales in the state have slumped by a fifth in the past year, for new and existing houses, single-family homes, apartments and condominiums. Those falls are even worse than elsewhere in the country. "It is really a buyer's market right now, particularly outside Boston. We had someone who wanted $348,000 [£185,000] for an apartment but she had to cut it to $300,000 to sell it," said Tasha Ramnarine of Jacob Realty in Boston. "We are going into the quiet winter months right now but we hope it will all pick up next spring."

A glance at the local newspapers is revealing. Ad after ad carries the tag "price reduction" or "buyer incentives". If you are a buyer these days, you are in the driving seat.

Cuts of $100,000 to $200,000 for houses priced at $1m are commonplace. This is the sellers' nightmare that did not materialise in Britain when the market slowed in 2004 and 2005.

No end in sight

But the downturn in the US is gathering pace. A report last month from Global Insight and National City Corp said that of the country's 317 main metropolitan centres 40% were extremely overvalued and a fifth had already suffered price falls. Prices are still estimated to be up to 25% overvalued.

posted by Steve @ 12:02:00 AM

12:02:00 AM

The News Blog home page


Editorial Staff

Add to My AOL

Support The News Blog

Amazon Honor System Click Here to Pay Learn More
News Blog Food Blog
Visit the News Blog Food Blog
The News Blog Shops
Operation Yellow Elephant
Enlist, Young Republicans