From the Express Times:
Home sales decline 20 percent in area
Home sales in the Lehigh Valley fell by one-fifth in May compared with last year, the latest data shows.
Adding to the slowdown, homes that do sell are staying on the market longer.
…
One economist said the trends mean sellers, who benefited from several years of a booming real estate market earlier this decade, should temper their expectations.“We are looking at a correction in the housing market,” said Kamran Afshar, a Bethlehem-based economist who follows local trends.
The average time on the market for properties sold in May was 51 days, up 16 percent from 44 days in May 2006, according to a report released this week by the Lehigh Valley Association of Realtors.
As for home sales, LVAR reported 663 last month, down 20 percent from the year-ago total of 825.
Afshar said a housing correction is typically marked by fewer sales and longer durations between purchases. He expects that trend to continue the rest of the year.
…
LVAR also reports the number of new listings rose last month to 1,864. That’s up 16 percent from the May 2006 pace of 1,611.
fyi Bloomberg: Regulators Kept Quiet as Subprime Lenders `Targeted’ Minorities
By Craig Torres
June 13 (Bloomberg) — The U.S. agencies that supervise more than 8,000 banks haven’t censured any of them for violating fair-lending laws, three years after Federal Reserve researchers began assembling data showing blacks and Hispanics are more likely than whites to be saddled with high-priced home loans.
Minorities stand to be hardest hit by rising delinquencies and foreclosures in subprime loans. While Census Bureau data show that homeownership rates rose to records among blacks in 2004 and among Hispanics in 2005, they still trail whites by 25 percentage points, and the gap may widen in the current bust.
“Black people and Hispanics have been targeted,” said Alphonso Jackson, secretary of Housing and Urban Development, whose department is hiring to expand its own probe of discriminatory lending.
“Low and moderate-income people get one shot at home ownership,” Jackson said in an interview in Washington. “And if they don’t make it work, they don’t get a second shot.”
Subprime loans — those made at higher interest rates to people whom banks consider risky or who have sketchy credit histories — accounted for more than half of the home foreclosures in the fourth quarter of last year. The Fed’s review, conducted by economists from its research and statistics division, covered lending data from 2004 and 2005, the first two years of expanded disclosure requirements for banks and the final two years of Alan Greenspan’s tenure as chairman.
Closer Scrutiny
http://www.bloomberg.com/apps/news?pid=20601103&sid=a6F6StSPKNig&refer=news
The market is much worse then being reported. I live in the East Penn SD which is one of the biggest bubble markets in the entire valley. There are 6-8 homes all priced under 180k that have been on the market for 6 months minimum. No smart local person would pay double for what they are worth. People have smartened up around here and are going too wait this out, years if it’s needed. I know 20-30 different couples and single people that all are doing so. Houses were being flipped 2 or 3 times from 2001 and until they get back to 2002 prices, they won’t be sold again. Perfect example is a beautiful street of row homes right down the street. They were selling for around 85k in 2001. From 2002-2006 half of them went from 85k-115-175k. There are 3 for sale still. All 3 have been purchased since 2005. They are asking 165-185k. These are all commuters. 2 months ago a “TRUE LOCAL” wanted to retire. He purchased his home in the 80’s for 45 or 50k, he sold his in 3 days, why? Because he sold it for 120k. Now that townhome had more upgrades and was in PERFECT condition. That set the precedent the other fools were so mad they even made disgusting remarks to him and his family. He said hey I made money and sold it too a “LOCAL COUPLE” they aren’t going to move and will enjoy it for a long time. That’s what the homes should be valued at “NOT BUBBLE PRICES BECAUSE PEOPLE OVERPAID”. Who’s going to buy the other homes for 35-45k more? Not anyone that can research the lehigh county deeds!
If you look at out MLS system you will see 90% of the homes for sale have been purchased since 2005. They all were flipped 2 or 3 times since 2000. This market is crashed and the local paper is completely on the side of realtors and industry related people. The parties over and this is starting to look just like the DOT.COM era. Denial, Denial, Acceptance, CRASH!
Prices went up over 100% here and all we hear in the papers is how things are going to correct. The best line was the other day, they said homes under 250k were selling in less than 51 days. LOL!!!! WHERE?????
Here’s the client list from Kamarr or whatever his name is that gave the data too the morning call.
Can you say Bias?
Some of our clients All State Legal Lehigh University
Allentown Osteopathic M.C.
Gertrude Hawk Chocolate
Alpha Shirt Company Lehigh Valley Bank
Allegiance Bank LVI Airport
Bell and Howell Lucent Technologies
Borough of Fountain Hill Mack Trucks, Inc.
Mauch Chunk Trust Co. Mantas, Inc.
Cellular One The Morning Call
Chadwick Telephone Musikfest
City of Allentown National Penn Bank
County of Northampton Nazareth National Bank
CompTel PP&L
County of Lehigh Rodale Press
East Penn Bank Paragon Technologies
First Fidelity St. Luke’s Hospital
KNBT UGI
Lafayette Ambassador Bank WFMZ-TV69
LANTA WLVT-TV39
Lehigh Cement Penn. Assoc. of Community Banks
Phoenixville Federal Bank & Trust Trans-Bridge
The morning call didn’t paste but they are on there.. Here’s the link.
http://www.kaa-inc.com/docs/clients.html
fyi Bloomberg: Regulators Kept Quiet as Subprime Lenders `Targeted’ Minorities
This is just sad, sad, sad. Next they’ll be targeting high school children.