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"A Decidedly Different Stage"

By Bonnie Erickson

Real Estate Agent with Tangletown Realty

November 30, 2006 12:03 PM

"Our newest data confirm last quarter's data that the housing market is in a decidedly different stage," said OFHEO Director James B. Lockhart in a statement. "With U.S. house prices growing less than 1 percent during the third quarter, it provides more evidence that the long-forecasted national deceleration in house prices is occurring." Quote taken from Inman News, November 30, 2006. (The link will only work after today if you are a subscriber.)

I'm sorry, but this statement struck my funny bone. . . "the housing market is in a decidedly different stage". No kidding? The Director of the Office of Federal Housing Enterprise Oversight has stated the obvious! Since housing prices went up 56.8 percent in the last five years, slowing to 3.45 percent this year is a bit of a change. Yep, you betcha!

To add insult to injury, I find the numbers for appreciation for Minnesota's market are in the bottom of the barrel, sixth from the bottom to be exact at 3.4 percent. We're practically tied with the national figure. I'm glad not to be in Michigan which actually declined .6%, or Ohio which appreicated 1%, followed by Massachusetts at 1.1%, Indiana at 2.3% and Nebraska at 3.2%. Yep, "the housing market is in a decidedly different stage"!

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Maureen Francis

Coldwell Banker Weir Manuel - Bloomfield Hills, MI

Coldwell Banker Weir Manuel

.6 is the state of Michigan. I have had to tell clients that their home was worth 20% less than they had it listed for last year (not by me). Metro Detroit is much worse than .6 Everyone should be glad they are not here. A one state recession is not fun.

Nov 30, 2006 12:49 PM

Brian Brady

Matthews Capital Markets - Tampa, FL

858-699-4590

"Different stage?" That's the best they could come up with?

A nun who shows up pregnant is definitely at a different stage. Same dramatic effect for an understated analogy.

Nov 30, 2006 05:45 PM

Boomer Jack Boardman & Carl McIntyre, the Codgers

Noted Curmudgeons - Saint Paul, MN

Hmmmph! “Different Stage?” Reminds me a bit of a Wells Fargo bank ad.

Jay Merton

Nov 30, 2006 09:13 PM

Teresa Boardman

Boardman Realty - Saint Paul, MN

I went to an all day seminar put on by the Minnesota association yesterday. They really emphasized proper pricing and suggested that we explain to sellers that the neighbors may have gotten 300K for their home, but we need to price theirs at 280K and then explain that they will also pay less for the new home they are buying than the neighbors down the street did. I think they have a point it is relative. As a home owner I know that I could have gotten about 20K more for my house last year than I could get right now. We really are all in the same boat. I don't feel like I have lost money or anything like that because my home is where I live and it is worth what it is worth, which is what someone else will pay for it not how much money I want. :)

Dec 02, 2006 01:17 AM

Bonnie Erickson

Tangletown Realty - Saint Paul, MN

Teresa, you would say that about your home. You didn't buy yours in 2004 when the prices were high! We knew when we bought our house we were paying too much as it was. Now, the house is worth even less than when we overpaid for it! However, like you, it's my home and I intend to live here a Looooongg time! The only dilemma we would have would be if we HAD to sell because of a change in family circumstance. We would have to do a short sale until enough repairs are done to bring the value back to our purchase price!

Dec 04, 2006 07:08 AM

I really reacted to the "different stage". I think the pregnant nun is definitely the kind of different stage we're in!

Dec 04, 2006 07:09 AM

"A Decidedly Different Stage"

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