Slowing Is Seen in Housing Prices in Hot Markets

[ckramer]

A real estate slowdown that began in a handful of cities this summer has spread to almost every hot housing market in the country, including New York.

More sellers are putting their homes on the market, houses are selling less quickly and prices are no longer increasing as rapidly as they were in the spring, according to local data and interviews with brokers.

In Manhattan, the average sales price fell almost 13 percent in the third quarter from the second quarter, according to a widely followed report to be released today by Miller Samuel, an appraisal firm, and Prudential Douglas Elliman, a real estate firm. The amount of time it took to sell a home was also up 30.4 percent over the same period.

In another sign that the housing market might have reached a peak, executives at big home builders have sold almost $1 billion worth of company stock this year.

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[LibDemAlways]

1. It's still ridiculous in my Southern California

suburb. Old houses that a couple of years ago would have sat on the market for months at $350K are now fetching upwards of $800K. McMansions that sold new for $650K 5 years ago are now going for 1.5 million. When the market reverses - as it inevitably will - a bunch of recent buyers are going to be in deep shit.