There’s A New Sign In The Market - ‘Reduced Price’
A report from CNBC. “After several years of rich home price gains, the market appears to have found a limit to what people can afford. Sellers are finally responding by increasingly lowering prices. Approximately 14 percent of all listings in June had seen a price cut, that’s up from a recent low of 11.7 percent at the end of 2016, according to Zillow. In addition, home price growth is slowing in nearly half of the 35 largest U.S. metropolitan markets. The market was thus suffering a critical shortage, just as demand was taking off. Prices had nowhere to go but up. Until now. In San Diego, 20 percent of all listings had a price cut in June, up from 12 percent a year ago. In Seattle, which continues to be the hottest market in the nation, 12 percent of all listings had a cut, the largest share in nearly four years.”
“In Austin, also a very strong housing market thanks to a recent influx of technology jobs, more homes are seeing price cuts as well. ‘We saw intense bidding on homes over the past few years, but that is calming down with more inventory in the area,’ said B Barnett, a real estate agent with Reilly Realtors in Austin. ‘Our inventory of homes is going up with new construction, and it is helping transfer power back to the buyer.’”
From the Dallas Morning News in Texas. “There’s a new sign in the North Texas housing market - ‘Reduced Price.’ Almost 19 percent of the home sale listings in Dallas-Fort Worth had had at least one price cut, according to a new report from Zillow. That’s up from about a 14 percent reduced price rate in D-FW a year ago. With home sales slowing and housing prices growing at a much slower rate than in recent years, sellers are sometimes over reaching with their asking prices, real estate agents say.”
“Houses that just sit on the market often get a price reboot. The rate of home price cuts in D-FW is higher than the nationwide rate of 14 percent in June, according to Zillow.”
The Columbus Dispatch in Ohio. “More home sellers are dropping their asking price, in Columbus and across the country, according to Zillow, suggesting that the housing market may finally be softening. In central Ohio, 15.1 percent of listings had cut prices in June, up from 12.5 percent a year ago. The figures are the latest of a handful of indications that the housing market may be starting to soften after six years of sky-high growth, although sellers still hold most of the cards.”
“‘The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever so slightly,’ said Zillow senior economist Aaron Terrazas. ‘It’s far too soon to call this a buyer’s market. Home values are still expected to appreciate at double their historic rate over the next 12 months, but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.’”
“In two cities - Tampa, Florida, and San Diego - at least 20 percent of listings saw price reductions in June.”
From KOMO News in Washington. “Finally there is some good news for people struggling to buy a home in the Seattle area’s red-hot real estate market. Zillow says more homes on the market here are seeing price cuts - nearly twice as many as last year. Some 12 percent of listings in Seattle had a price cut in the most recent reporting period - that’s up from 6.9 percent a year ago. The typical price cut is 3.1 percent.”
“There are also fewer buyers from outside the United States. Countries like China have made it harder to move money overseas. And Zillow is projecting that the slowdown in home prices will continue into next year.”
From KOVA in Arizona. “New statistics from the Tucson Association of Realtors show the housing market is going through a slight summer slump. Total sales volume fell 15.91% percent to $347,114,173, while the average sale price fell 2.01 percent to $253,924. Also, the average listing price fell 1.53 percent to $260,279.”
From Builder Online. “One top 10 home building firm has data that indicates a flash-point on house prices it’s unwilling to risk triggering. An executive there notes: ‘For every $1,000 we add to the selling price of a home in our [seven state] operating regions and divisions, we know we’d eliminate 250,000 households from our qualified buyer pool in those markets and submarkets.’”
“Right now, that’s not a risk builders willingly take. New data from a BTIG/Homesphere survey of 75 to 100 small to midsize builders whose operations sell from 50 to 100 homes per year indicates that builders’ ability to pass-along construction cost increases may have hit a cycle tipping point. While builders haven’t gone so far as to lower base prices, more and more are apt to do the next best thing in order to keep driving the pace of absorptions in each of their subdivisions and communities.”
“For the last five-and-a-half months of 2018, we’re going to be hearing one word a lot: Incentives. Here’s how the BTIG/Homesphere analysis contextualizes it: ‘This month no builder surveyed reported a drop in base prices. 39% raised most or all of them, down from 50% in June. The 42% reporting increases in sales incentives was up from 33% in June, but note we would expect this trend to increase seasonally through the year. Not a single builder surveyed reported seeing lower mo/mo costs in land, labor nor materials.’”
“The most-recent analysis in The Z Report makes similar observations–’many builders increasing their exposure to more affordable price points of late, which is putting a downward skew to reported prices’–and comes to an identical conclusion about tactical pricing to keep pace and volume levels cranking: ‘Any potential further deceleration in order activity will likely result in heightened incentives into year end, which could put pressure on gross margins heading into 2019.’”
“A parting thought challenge for you to ponder here. If a $1,000 increase in a per unit price for a builder prices out a quarter-of-a-million prospective buyers in its operational footprint, what would a $1,000 decrease in a like-for-like unit do to that buyer pool? “
Whole lotta Ebola goin’ on.
‘If a $1,000 increase in a per unit price for a builder prices out a quarter-of-a-million prospective buyers in its operational footprint, what would a $1,000 decrease in a like-for-like unit do to that buyer pool?’
That’s right loanowners. These builders who shook you down 6 months ago will pull the price rug from under you to keep building for another year or two. Heck, they’re downright calculating about it.
‘If a $1,000 increase in a per unit price for a builder prices out a quarter-of-a-million prospective buyers in its operational footprint’
Diane is also pinning the “blame” on interest rates. She may be right. But if a one point increase is slamming the market, what will another two or three points do?
Oh dear…
The Battle of the Bond Forecasters
Aug. 9, 2018 10:12 a.m. ET
Never say never. That’s the one lesson I take away from the past four decades, which have seen both record-high stocks and a 22% one-day drop in the Dow, both 20% and 0% U.S. interest rates, and both “Morning in America” and a depressing “New Normal.”
So when JPMorgan Chase Chief Executive Jamie Dimon contends that long-term U.S. interest rates ought to be 4%—and, indeed, that 5% has a higher probability than the conventional wisdom holds—that mantra bears repeating.
…
Its almost as if fed low interest policies have helped fuel the housing bubble! Imagine that.
It’s an ebola market now. And in case you didn’t know, ebola is highly contagious. Try not to catch a fatal illness by purchasing a house when prices are falling.
‘We saw intense bidding on homes over the past few years, but that is calming down with more inventory in the area,’ said B Barnett, a real estate agent with Reilly Realtors in Austin. ‘Our inventory of homes is going up with new construction’
Yeah B, we recently saw a report with close to 3,000 new, empty shacks for sale in Austin. Ouch!
Bellevue, WA Rental Rates Plunge 13% YOY As Seattle Housing Market Craters
https://www.zillow.com/bellevue-wa-98004/home-values/
*Select price from dropdown menu on rental chart
Wasn’t one poster saying just the other day that, other than outliers like New York, prices weren’t dropping anywhere in the US? Gosh, does he have egg on his face this morning!
‘Some 12 percent of listings in Seattle had a price cut in the most recent reporting period - that’s up from 6.9 percent a year ago. The typical price cut is 3.1 percent’
Take that Realtor koolaid back to the city-data forums.
Comment by Tom Mckesson
2018-08-13
“A lot of low life’s on this website/board. Most here live with their parents or have been renting the past 10 years. Now they are hoping for an economic downturn to have their chance to buy. Good luck with your loan when you lose your job and your purchasing power vanishes. Home ownership is not a get rich quick scheme. People buy for the long term to raise families. An apartment or renting is no way to live. Most like to know what their cost of living will be so they can make decisions. You all missed out. I would take advantage of the recent correction if you have been waiting on the sidelines. By May next year you will see record high’s again. Bull market is not over yet. Will go to at least 2020 if not 2022. The technology we have at are disposable is unreal. Wake up you clowns.”
http://thehousingbubbleblog.com/?p=10539#comment-2673780
‘The technology we have at are disposable is unreal’
‘Will go to at least 2020 if not 2022′
Eat your crow Tom.
That some good koolaid right there
Grape koolaid is the best
“The technology we have at are disposable is unreal”
What does that even mean? After a long rant he ends with this? Are you going to block posters on this blog from buying? Are you going to manipulate the listings? Not trying to feed the troll but at least make your rant make sense!
As for me I enjoy his rant. His point of view makes sense for those searching for a point of view to match their own.
Once this point of view is reinforced by such posts on this message board or wherever a puke will be less hesitant to enter into a loan contract that may possibly lead to a lifetime of debt slavery, a good and wonderous thing IMO.
‘a point of view to match their own’
Sloppy drunk?
Soberly stupid.
Which is a good thing in that they may not always be drunk but they will always be stupid.
“What does that even mean?”
Might be using a stale version of speech recognition software?
‘will go to at least 2020 if not 2022. ‘
That notion must have been an NRA talking point or something.
I was talking to someone planning to sell in Dallas and based on their ‘research’ they were gonna list in 2021 I think. The referenced business re-locations, discussions with realtors, etc.
I think they may have already missed the boat since they’re in the $500k + range.
Was talking to a realtor in CA, they suggested the fall market will be thin and May was probably the peak.
I am sure you meant NAR.
“Eat your crow Tom.”
…with your Grey Poupon.
“The technology we have at are disposable is unreal”
Actually, the technology is going to make price declines brutally obvious, last time many more people had to take the word of the realtor, broker, neighbors, etc., now we get almost live feeds of sales in our neighborhoods with days on market, price reductions, etc.
I remember in 2005 the newspapers were about 50% ads hawking new homes, RE agents, etc. And there’s that old saying about following the money. Alternative news outlets are way more popular ten years later. Even if they’re not accurate at least consumers are exposed to viewpoints not funded by the RE complex.
The turn could be much quicker this time because of technology, not in spite of it.
Magoo . That is a fantastic insight. This is why I read this blog.
Agree, Magoo. Plus, anybody who experienced the 2008 crash should know full well how corrupt and rigged our entire financial system has become, and won’t count on the captured corporate media to tell them what’s really going on. Trusting Republicrat duopoly politicians, enforcers, regulators, auditors, appraisers, realtors, “analysts”, media dissemblers, and realtors was a fatal mistake for tens of millions of people back in 2008, and left millions of others permanently inoculated against the lies and bullshit of the oligarchy, it’s political and media hirelings, and its touts and shills in the captured media.
Agreed, good point. I have thought the same about tech making likely expediting market changes as I closely analyze individual markets on Zillow and Realtor.com every day.
And I did experience the previous run-up and crash first hand in SWFL. Both the good and the bad. It was quite a learning experience. Shady realtors, mortgage brokers, appraisers, lenders, sellers, ect. It was the wild west of RE back then. this time IS different but that doesn’t mean another hard correction isn’t coming.
‘Will go to at least 2020 if not 2022′
yet another sign its over
“Prices had nowhere to go but up. Until now. In San Diego, 20 percent of all listings had a price cut in June, up from 12 percent a year ago.”
Sounds like prices have reached the point where up gives way to down.
“Approximately 14 percent of all listings in June had seen a price cut, that’s up from a recent low of 11.7 percent at the end of 2016, according to Zillow. In addition, home price growth is slowing in nearly half of the 35 largest U.S. metropolitan markets.”
Freaking outliers…
To paraphrase Nixon, “we are ALL outliers now”.
da bear
The 3.1 percent seems too small, perhaps it’s averaged with sales prices that didn’t have reductions?
What I’ve ( and my neighbor who is in commercial RE but seems pretty grounded about the reality of the area ) have seen here locally is a fairly strong split into 2 camps: Houses that are fairly prices for the current market and seem to sell ok, and houses that are overpriced by a decent amount - say 15% or a good bit more and sitting around for months until they start slicing 50/100/150k/etc off.
The latter group of sellers clearly either is trying to recoup their flipping and purchase costs and still keep a profit (like the $600k shack in Burian you reported on the other day ) or they are really uninformed / delusional. perhaps some of the latter aren’t serious and putting out a “pay me so much that’ll I change my mind about staying here” price.
I think you’re missing the forest for the trees. Mass price reductions are indicative of a weakening market. Period.
not sure how you got that out of what I said at all.
I was echoing what SWFL was saying about moonshots. I’m seeing sellers locally that are overpricing, and they are doing it by a lot. When they finally do sell (and a lot seem to get pulled off the market for a while) the actual sales price is reduced much, much more than 3.1% from the original. I’m guessing Ben’s 3.1% is for each individual reduction and not the whole from start to finish. The time off MLS could be to reset and not make the stats look as bad as they are.
Any voice of reasonable discussion is not welcome here. Either you get out the torches and pitchforks for the debt donkey pukes who had the audacity to take out a mortgage or you are the debt donkey puke.
I have bought and sold a few houses. I’ve had a 5/1 ARM, interest only, contract for deed, 30 year traditional, and paid cash outright. In the past 12-15 years I’ve been almost a million in debt and nearly debt free. I’ve made far more than I’ve lost but I’ve been on both sides. That makes me a debt donkey puke too. Join the club.
It’s too bad really, this site is very useful for balance to the RE cheerleading that is constantly pumped out by the MSM and REIC types. But for whatever reason a very peculiar group of strange folk have become the regulars in the comment section. I’m guessing they’re mostly paycheck to paycheck types with a sprinkling of blue collar, government hating types mixed in.
‘That makes me a debt donkey puke too’
There’s a song in there somewhere. Maybe that UK reggae or something.
What happened to you Mr. Jones? I haven’t seen your story but I’m wondering if you got burned on a bad RE deal or something? Not being sarcastic, just wondering.
You’re one of the very few folks that I can find on the net who expend a substantial amount of energy on the negative side of homeownership.
Any voice of reasonable discussion is not welcome here
Here’s the reality; you are a very rude and insulting personality. Then you want gentle conversation on your terms. We are here to watch the greatest spectacle of economic folly in history and to discuss. You’re what we might call a specimen.
‘expend a substantial amount of energy on the negative side of homeownership’
I’m just saying you should lighten up a bit. This blog has been around a long time and we kid around some.
My rudeness was simply a counterpunch, you can look through my short post history to see as much.
How many houses have you bought and sold? What are your qualifications to know that the “greatest spectacle of economic folly in history” is coming?
Your comments make you seem like you’re just some brokedick neckbeard living in his mothers basement and working for minimum wage at McD’s but maybe you’re a well seasoned professional who has made his fortune in a noble manner without borrowing money along the way. Doubt.
I’ve read your posts.
Your made up condemnations of us here are untruthful and in no way lead to understanding anything. I get the personality thing, I tell you something about me, you slam me for it. No thanks.
But for whatever reason a very peculiar group of strange folk have become the regulars in the comment section. I’m guessing they’re mostly paycheck to paycheck types with a sprinkling of blue collar, government hating types mixed in.
There are some odd ducks here…you have to be a little odd to find this perspective interesting even when the bubble is on the way up and everybody else is out crowing about their paper gains. But you’d be guessing wrong…and over the years it’s comical how often the desperate and over-leveraged come here and angrily make the same guess.
You see, this blog is a nano-speck (is that a thing?) on a flea on the ass of the greater world economy, albeit a bend towards real estate. The followers/commenters on this blog are at least open to receiving the data and headlines simply not given any attention by MSM. This blog in not mainstream, clearly.
You have to take all the various opinions with a grain of salt. However, when Ben pulls articles from so many different sources - I find that more valuable then listening to NAR and schill-fanboi economist mouthpieces droning on and on about “buy now or be priced out forever” and creating a scarcity mindset and fueling the ensuing mania.
You see, I am a end-user seeker of shelter. I do not believe you can have a viable economy based on selling/flipping houses to the next guy for ever-increasing amounts of money. The all ends in debt, and has been allowed to exist because of ridiculous economic policies. And I do not believe the government (taxpayers = you and me) should have to eat the gambling losses.
So, yes, I will rejoice when fools get crushed and hopefully we return to some semblance of economic prudence. It is long overdue.
“My rudeness was simply a counterpunch…”
Excuse me? Where did I ever say something rude, period? I was responding to MGSpiffy with no rudeness whatsoever and you got all wadded up over nothing.
missing the forest for the trees
It’s a mania. Delusional is baked in.
Chances are good you bought a big house pretty much at the top.
Chances are good you bought a big house pretty much at the top.
Pretty sure MG has admitted as such, and there’s no basis to harp on it. He bought for the right reasons — to live in it, not to speculate, and with eyes wide open.
The recent trolls aren’t completely wrong — there does seem to be a sentiment lately to attacking anyone who might own/have bought a house.
No one benefits from this becoming an echo chamber of hate for anyone who owns RE (which you do too, last I remember, Skye…)
‘The figures are the latest of a handful of indications that the housing market may be starting to soften after six years of sky-high growth’
That six years is what made it a bubble.There shouldn’t be sky high growth in Columbus.
‘although sellers still hold most of the cards’
Well they hold all of the the loan too. I wonder who’s in charge now?
The old saying comes into play at time like this: housing is an illiquid asset.
“Illiquid refers to the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets may also be hard to sell quickly because of a lack of ready and willing investors or speculators to purchase the asset.”
“Illiquid refers to the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets may also be hard to sell quickly because of a lack of ready and willing investors or speculators to purchase the asset.”
Don’t get stucco!
Just a tiny datapoint.
On many new episodes of HGTV house makeover shows where folks buy an older house, the buyers are buying houses at a significant discount.
One was $325k listed - purchased down to $260k.
One of the pinical moments of HGTV in the last bubble pop were shows that showed flippers who got stuck. Most shows ended with flippers living in their flip…while trying to sell it for a break even price
The current shows are old or fake ,usually both
Why pay $250,099 ,for a 100 yr old house in Waco w street parking?
Re: Flippers
From a May 2018 article featuring the “Boise Boys” HGTV show…
A home along the rim at Kathryn Albertson Park was purchased for $350,000 – with another $350,000 into renovation costs.
“Have we ever poured so much house into a house before?” Caldwell said on the show. “It’s the most expensive house we’ve ever done!” noted Robertson.
Toward the end of the episode, Robertson tells the camera they have a deal in hand.
But the home didn’t sell until well after the episode was produced and the show was aired.
The home was removed from the market just Sunday after a price reduction from $989,700 down to $974,900.
https://boisedev.com/news/2018/5/22/boise-boys-timber-love-luke-caldwell-clint-robertson/
If I’m reading this right they still stand to make a quarter million at the current price? Not exactly a prime example of a bubble busting. It it sells for $680k then I could see using it as evidence.
In a real RE bubble bust ala 2007-2011, that house would be foreclosed and recently sold for $350k after investing $700k. That’s a bubble bust. And don’t get me wrong, I do think that we’ve surpassed a peak and are on a downward trend, I’m just not sure if it’s a correction or a bust. I’m guessing 15%-20% hard correction over a 2.5 year period.
DonkeyTalk
They stand to make nothing when it doesn’t sell. That is the point.
“‘although sellers still hold most of the cards’”
“Well they hold all of the the loan too. I wonder who’s in charge now?”
A good way to find out is to stop making the payments.
I enjoy hearing home BUYERS referring to themselves as home OWNERS. This comforts me for two reasons:
1. It demonstrates to me just how stupid these people are.
2. It assures me that their vast stupidity can be milked for many years into the future - possibly many decades into the future - which will ensure me and my family and my girlfriends a seemingly endless sharing in whatever wages or salaries these stupid pukes happen to earn as the years flow on by.
Such hatred. It must be a sad existence hating a huge percentage of the population of the USA and thinking they’re all “stupid…pukes” because they have a mortgage instead of paying rent.
This must be some sort of a medical condition/mental disorder, is there a name for it?
It’s the internet, don’t take everything so personal.
I’m not taking it personally at all. It sounds like the poster who I responded to is, however. These guys getting all disgruntled calling everybody idiots and pukes seem to be quite butt hurt by people taking out home loans for some reason.
It’s a caricature. A role played to make certain points.
“Such hatred.”
Not hatred but gratitude.
It’s gratitude because pukes so willingly allow me to share in the rewards of their labor.
“It’s a caricature.”
Ouch!
Ouch!
Don’t fret. The Debt Donkey is a caricature too.
A bunch a mothers-basement dwelling brokedick neckbeards without two nickels to rub together, congregating here to cyber high five each other while they hate on ’stupid pukes’ and ‘debt donkeys’ who are destroying the real estate market for all of the hardworking brokedicks.
Just a caricature of course, but that is what I envision as I read the comment section. Broke, angry and ugly is no way to go through life.
I really do appreciate this site though, the world needs balance and this sight provides the polar opposite of what the REIC puts out. Thanks to you Mr. Jones, I’ve turned a lot of others onto your site as well. My realtor acquaintances don’t seem to appreciate it as much as I do.
Cheer up my good friend…. Cheer up.
San Diego, CA Housing Prices Crater 5% YOY
https://www.zillow.com/san-diego-ca-92037/home-values/
… an don’t forget to select price from the dropdown menu
A bunch a mothers-basement dwelling brokedick neckbeards without two nickels to rub together, congregating here to cyber high five each other while they hate on ’stupid pukes’ and ‘debt donkeys’ who are destroying the real estate market for all of the hardworking brokedicks.
Just a caricature of course, but that is what I envision as I read the comment section. Broke, angry and ugly is no way to go through life.
Hahah. I’m sure it seems that way to someone who is angry about not getting out when they had the chance.
But I’m confused about the “destroying the real estate market” part. We’ve heard that before. But really…how can a few basement dwellers of the type you describe destroy a real estate market? Seems impossible to me…which makes me discount all the other ideas “they” have about “us” as well.
A bunch a mothers-basement dwelling brokedick
Thi s is simple trolling.
I’ve turned a lot of others onto your site as well
This is a lie.
A bunch a mothers-basement dwelling brokedick neckbeards without two nickels to rub together, congregating here to cyber high five each other while they hate on ’stupid pukes’ and ‘debt donkeys’ who are destroying the real estate market for all of the hardworking brokedicks.
You say that like it’s a BAD thing….
It’s trolling if it’s me describing you as a basement dwelling brokedick neckbeard, but it’s ‘a caricature’ when it’s you describing me as a ‘puke’, ‘debt donkey’ ect. Got it.
I didn’t call you a puke. I called you a caricature. Since you have no clue where I live you are a liar.
“The old saying comes into play at time like this: housing is an illiquid a$$et.”
$750,000+ … $950,000+ … $1,150,000+ hou$e.a.waitin’.to $ell
Good thing that the homemoaner$ get to $uspend the propertie$ taxe$ whil$t they wait the many month$ that go pa$t without the e$crow a clo$in’
An illiquid$ A$$et that ha$ financial baggage$ clingin’ on to it.
Hurry up & get that outdoor pizza oven in$talled!
“¡Arriba, arriba! ¡Ándale, ándale!” $ayeth $peedy Gonzale$
‘The figures are the latest of a handful of indications that the housing market may be starting to soften after six years of sky-high growth’
Absolutely ridiculous and artificial. The Fed’s easy money policy blew outrageous asset price bubbles. First and foremost they wanted to save the banks. However, these ivory tower hacks also mistakenly believed that there’s some sort of trickle-down effect. Nope, now we’re just left with a bunch of overpriced stuff that nobody can afford while wages have not even increased. What a fawking joke.
Charleston, SC Housing Prices Crater 11% YOY As As Vacancy Rate Skyrockets
https://www.zillow.com/charleston-sc-29401/home-values/
*Select price from dropdown menu on first chart
‘In two cities - Tampa, Florida, and San Diego - at least 20 percent of listings saw price reductions in June.’
But Tampa red hot? San Diego shortage? Wa happened?
I just moved from San Diego to Portland. Renting. $3,000 rentals in SD are selling for $800k. That same home with a typical 10% down (not a lot are putting $160k down) is well over $5k a month with tax, insurance, maintenance, HOA, etc.
$5k per month of which maybe $1k is equity. So I spend an extra $2k per month to get $1k in equity? I could put the extra $2k into a savings account every month and come out way ahead when it’s time to retire. I get that there is a break-even point due to inflation and rising rents but with the glut of luxury apartments I’m not too worried about rents going up anytime soon.
This is what I ended up doing when I moved in Nov: $3500 rents a nice little place with harbor views and water access. I can invest the principal I would have been paying and still have money left over. My landlord also fixed things that break.
“…well over $5k a month with tax, insurance, maintenance, HOA, etc.”
Won’t be doing that retired on Social Security.
‘The market was thus suffering a critical shortage, just as demand was taking off. Prices had nowhere to go but up. Until now.’
The REIC is furiously crafting a new narrative. It’s interesting to watch them bury the shortage myth with “as demand was taking off”. See it just took half a sentence to tell shack owners they are fooked.
‘Prices had nowhere to go but up’
Sounds like crazy talk to me.
The REIC is furiously crafting a new narrative. It’s interesting to watch them bury the shortage myth with “as demand was taking off”.
They were lying then, they’re lying now. Never trust a Realtor. Realtors are liars.
“‘Prices had nowhere to go but up’”
Sayings such as this is what drives/lures pukes into the banks so as to willingly enlist themselves to becoming debt slaves.
I like, I love it, I want some more of it.
😁
If you love it when people take mortgages to buy houses, why do you call them “stupid pukes”? Usually if there is somebody doing something that benefits me I appreciate it, thank them and hope they’ll continue.
Are you familiar with the concept of satire? Sarcasm?
“… why do you call them “stupid pukes”?”
What would you call people who will willingly enter into a multi-decade contract that commits to strangers huge chunks - HUGE CHUNKS - of their yet-to-be-earned-income for decades and yet are not bothered in the least as to what the terms are that are clearly laid out in the contract they are committing themselves to?
Such interesting phrases such as “adjustable mortgage rate” should be greeted with laughter by a prospective debt slave who possesses any sense at all but laughter is not what results, instead what results is the signing of the contract.
It appears to be quite amazing if anyone cares to stop and think about it for a minute. But, luckily for me, they don’t.
Memphis, TN Housing Prices Crater 18% YOY As Housing Correction Sweeps Across Nation
https://www.zillow.com/downtown-memphis-tn/home-values/
In Mission Viejo, South Orange County there are 1,072 listings. 320 price reductions. Sounds like 28% to me. And yet realtors in the area still say there’s a shortage of houses. Really?
New home$ coming $oon, x 2 miles to the North East …
(= more fleecing$ for Warren$ $addleback’$ flock)
“Go dog, go!” By PD Eastman
Miami, FL Housing Prices Crater 16% YOY As Housing Recovery Begins
https://www.zillow.com/downtown-miami-fl/home-values/
*Select price from dropdown menu on first chart
Not speaking to the market in OC but I can tell you that in SWFL there have been a LOT of price reductions. It looks to me that the majority of them are the result of sellers taking a moonshot with the initial listing price and quickly dropping the price from there if somebody doesn’t bite.
One house in particular that I’ve had my eye on was listed at $399k and has been reduced about $70k since then, dropping usually about $10k at a time. IMO it is still about $35k above what I’d value it at in a realistic and healthy market. I guess when you’re dealing in a market where a high percentage of the homes change ownership every few years, a listing agent can pretty much pull numbers out of thin air without much negative repercussion.
“I guess when you’re dealing in a market where a high percentage of the homes change ownership every few years, a listing agent can pretty much pull numbers out of thin air without much negative repercussion.”
It helps that the agent has a list of clients that have been thoroughly dumbed-down.
Make an offer for $250,000.
Let them know you are serious with a large deposit.
Give them 24 hours until it expires.
Cnbc
The Ohhhh’lick chick
If she’s on it it’s going down
(So to speak)
Not you Oxide
‘Almost 19 percent of the home sale listings in Dallas-Fort Worth had had at least one price cut, according to a new report from Zillow. That’s up from about a 14 percent reduced price rate in D-FW a year ago.’
You can see that with 14% price reduced a year ago, this isn’t a recent thing.
‘With home sales slowing and housing prices growing at a much slower rate than in recent years, sellers are sometimes over reaching with their asking prices, real estate agents say’
Well that sounds a lot better than saying prices are falling. Nice try.
Dallas Fort Worth!
Only a few months ago realtors showing well employed engineers houses for sale with bullet holes…
The worm is turning!!!
“Only a few months ago realtors showing well employed engineers houses for sale with bullet holes…”
Bullet holes. Here’s an example of marketing at its finest, an old car that doesn’t run in part (or in whole) due to the numerous bullet holes.
The pukes that died in the car are the ones who added value to the car, much more value that they ever came close to obtaining by their outlaw means.
IMO there is something poetic about all this.
“Primm Valley Resort & Casino in Primm, Nevada. The car was originally obtained by the owners of Whiskey Pete’s in 1988 for $250,000. The infamous “Death Car” was an attraction in their lobby, along with other Bonnie & Clyde relics, including the bulletriddled shirt worn by Clyde Barrow on the day that he was killed.”
http://texashideout.tripod.com/warrencar.html
Bullet holes = Street Cred! Can’t put a price on that..
‘In Austin, more homes are seeing price cuts as well. ‘We saw intense bidding on homes over the past few years’
That would explain the double digit increase in foreclosures.
I am praying and waiting for housing prices to crash in California metro areas. My dream would be for prices to crash 20-30% in Sacramento, San Jose, Los Angeles, Irvine, and San Diego. Alas, it is wishful thinking. Rents are skyrocketing, inventory is at an all time low, buyers are flooding open houses. I really do not see a slowdown in California at all.
We have all heard the same lamentations in the formally hot, hot, hot markets of NYC, London, Toronto, etc.
Alas, it is wishful thinking.
Sure about that?
Rents are skyrocketing, inventory is at an all time low, buyers are flooding open houses. I really do not see a slowdown in California at all.
That’s what I was seeing a few months ago. Not so much now, except for lower inventory. It does seem like less people are wanting to put their house on the market now. But there’s still a fair bit that was overpriced and didn’t sell back when it could have. Now it sits.
I’m thinking about going to an open house this weekend. I guess I’ll get a new data point on how much traffic there is, I haven’t gone to one lately.
Milwaukee, WI Housing Prices Crater 10% YOY As Mortgage Defaults Balloon
https://www.zillow.com/milwaukee-wi-53209/home-values/
*Select price from dropdown menu on first chart
From the nation’s soon to be third largest city
http://realtynewsreport.com/2018/08/15/1331-unit-westchase-multifamily-portfolio-acquired/
““You can really see the enthusiasm from investors by the large amount of capital that has been spent upgrading the multitude of older apartment communities throughout the Westchase District over the last few years. Combined with the capital being spent across the Westchase District’s long-range plan, which focuses on improving beautification, mobility, safety and quality of life, we should continue to see a much improved live, work, play environment in this area,” said (CBRE’s Matt) Phillips.”
I bet you’ll also see rents going up, up and away!
I am a realtor in Los Angeles. In the months of June and July there was a noticeable decrease in buyer traffic. Almost as if they gave up looking. The numbers that have come out have shown this.
I can confirm from my experiences over the last 2 weeks that buyer interest and traffic is picking up significantly again. I would also point out that I was seeing supply increase in July but that the supply that was going onto the market seemed to have some issues or needed some repair work. Maybe this caused buyers to pullback and which caused these sellers to drop prices to garner interest.
My personal opinion is we are still 1-2 years away from market top. Price gains will be limited to 2-3% per year until 2020-2022. Fed looks to be discontinuing the pace of rate hikes.
That is a funny way of saying that interest rates will still be going up.
******
“Fed looks to be discontinuing the pace of rate hikes.”
@2bananna There was nothing funny about that statement. Notice I did not say in my post that prices would never go down. I said that they are slowing the rate hikes so the market will continue to rise as people search for yield.
Curious how some houses with defects going on the market in July caused interest to drop in June.
@blueskye those 2 points were not correlated. Not sure why you would think that I was trying to infer that other then you being angry that you live with your parents still
Realtors are liars.
Looks like we have an angry troll.
” Fed looks to be discontinuing the pace of rate hikes.”
. . .I bet you have a folder of notecards full of these.
“More home sellers are dropping their asking price, in Columbus and across the country, according to Zillow, suggesting that the housing market may finally be softening.”
They’re playing the Quiet Game in Columbus, Ohio.
https://www.youtube.com/watch?v=bYL6p7PFZhs