It’s nothing short of amazing that the real estate decline in the Northeast is playing out almost identically to the late 80’s boom and early 90’s crash.
To draw a parallel with the last crash, we seem to be around 1989-1990 at this point. We’re hitting a period of uncertainty shortly after the top of the market. Sales are slowing, prices are falling (albeit slowly), and no one has a clear picture of the direction of the market.
Rewind to late 1989…
In a Cooling Housing Market, Real Estate Auctions Are Hot
December 3, 1989, Sunday
By CHARLOTTE LIBOV (NYT); Connecticut Weekly Desk
AUCTIONING off property, a sales method common in foreclosures, is being used more and more to market houses and condominiums in Connecticut as the demand for real estate continues to slacken.
And to 1990…
Residential Auctions More Popular
By JAY ROMANO
Published: October 7, 1990
RESIDENTIAL real-estate auctions, traditionally perceived as the last resort of desperate developers, are fast becoming an acceptable, sometimes preferable sales strategy, real-estate experts say.
In the midst of a real-estate slump that has left the state blanketed with for-sale signs, anxious sellers are more quickly turning to the auction block to lure cautious buyers to their properties. And according to auctioneers, real-estate agents, developers and the buyers themselves, the strategy is working better than anyone expected.
Now fast forward to today, March 14th, 2006…
Sellers literally put homes on the block
By Kimberly Blanton, Globe Staff
Published: March 14, 2006
Amid softening market, auctions growing more popular, despite risks
A growing number of homeowners and builders, unable to sell homes or condominiums the traditional way, through an agent, are turning to Sotheby’s-style auctions like this 26-property sale last month in Newton. With the housing market softening in US cities from Boston to Naples, Fla., to Utah ski towns, the National Auctioneers Association reported that residential properties valued at $14.2 billion sold in 2005 in live auctions, a 24 percent increase over 2003 sales.
Auction houses said a growing surplus of homes on the market nationwide is expected to drive more owners to auctions in the future. Maine-based J.J. Manning, which typically holds one-house auctions, said this was its first auction of properties owned by multiple owners since the early 1990s downturn. The firm plans more this year.