Today’s Housing Bubble Post – Cold Hard Facts Staring Sellers In The Face

Realtors know that prices have to drop, but sellers can’t believe it – yet. So realtors are trying to get the message to the buyers. Stubborn sellers could harm housing sector,

At a recent meeting with her Las Vegas real estate firm’s 200 agents, Joanne Levy told them they needed to deliver a stark message to clients.
They would tell them that unsold homes are at a record level and sellers need to lower their prices.
In other words: the boom is over.
… With stubborn sellers refusing to relent on asking prices, many prospective buyers have kept their hands in their pockets.
Some industry observers fear that bull-headed home sellers could worsen a downturn by driving up the inventory of homes for sale and running off would-be buyers….
“There is a lag period between sellers’ expectations and the reality of the marketplace,” he said, and shaking them out of their high-price fantasy “is more psychology than science.”
But cold facts are staring some homeowners in the face. [emphasis added]

But because of those cold, hard facts, I don’t think just dropping prices a bit is going to make a difference. Why not? Read on.

There are just too many houses for sale, and prices became just too high — way to high. In my opinion we’re not going to see houses start to move again until prices drop as much as 30-50%. And that’s just to get things started again.
Massachusetts: State housing market suffers in third quarter,

The state’s housing market endured its worst third quarter in about two decades, as sales of single-family homes and condominiums dropped by more than 20 percent each, according to a report released Monday by the Warren Group, a Boston-based, real-estate research firm.
… “The market downturn is accelerating right now,” said Terry Egan, editor-in-chief of Banker & Tradesman, a publication of the Warren Group. “Up until now, this market correction had affected single-family homes a little more acutely than the condo market. Now, this market correction has really taken hold across the board.”

And Home sales drop at historic rates,

Sales of single-family homes and condominiums in Massachusetts plunged 23 percent in the third quarter — the sharpest quarterly sales drop for single-family homes in at least two decades and the steepest for condominiums in 15 years, a firm that tracks real estate transactions said yesterday.

And let’s all weep in unison for the very, very rich: Housing slump takes shine off star-studded properties,

Cher is quietly trying to unload her gothic Pacific Coast Highway mansion in Malibu. Actor Nicolas Cage wants $35 million for his Bel-Air home, complete with screening room and Olympic-size pool.
But even in the land of $2 million “tear downs,” housing prices are dropping faster than Jamie Foxx’s Lamborghini.
“It’s a buyer’s market,” said real estate agent Ben Young Mason, who works with upper echelon clients. “Houses which sold within 60 to 90 days last year are now sitting on the market for four to six months. Last year, 90 days was considered a long time.”

Awwwww. Tooo bad.