How Dare You?
A report from the Madison Park Times in Washington. “Despite what you may have read or heard, the Seattle real estate market isn’t crashing. The sky isn’t falling. It is, however, a market in transition beyond the usual seasonal slowdown. It’s not the bubble bursting; there’s no need to panic. But all signs point to a normalization of the real estate scene compared to the last few years, and especially the crazy environment of this past spring.”
“The fact is, there are a number of other major markets around the country that have transitioned from a seller’s market to a heavy buyer’s market. The amount of foreign money pouring into real estate in these places has dried up. Foreign investments are no longer taking up extra inventory in existing housing and new construction.”
“While the bubble isn’t bursting here, we are shifting to more of a neutral market. A record number of homes entered the market in June — the most since the crash in 2008. So, there is a lot more inventory available to buyers. Some neighborhoods have plateaued in terms of price — home prices can only rise so high before buyers just won’t or can’t buy.”
“While we saw a record number of homes come on the market in June, we’ve also seen a record number of price reductions. If you’re considering selling your home, or are already on the market, you’ve got to recalibrate your expectations. Especially in terms of pricing strategy: sellers are typically behind the market by several months. Price right for the market now.”
“As an example, I had buyers looking at a home that had been on the market for 44 days, asking $2.2 million (priced too high), and we went to see it when it was cut to $1.998 million. My buyers made an offer of $1.95 million with contingencies. The listing broker was dismissive and defensive, asking ‘How dare you?’ We withdrew the offer.”
“The buyers agreed to be patient. We waited two weeks, resubmitted the same offer, and it was accepted. However, the sale didn’t go through — the inspection found significant water damage and resulting rot that had not been listed on the sellers’ disclosure. It would have been an expensive nightmare to remediate.”
“Last spring, a seller wouldn’t have had to accept a normal offer, with any negotiation and/or contingencies. And a buyer may well have won a bidding war, only to find out much later about the water damage.”
‘A record number of homes entered the market in June — the most since the crash in 2008…we’ve also seen a record number of price reductions’
Where do these shacks keep coming from? What happened to the shortage?
‘Last spring, a seller wouldn’t have had to accept a normal offer, with any negotiation and/or contingencies. And a buyer may well have won a bidding war, only to find out much later about the water damage’
Can a person in Seattle get a loan with such things being discovered? Cuz if so I bet there’s a bunch of fooked loan-owners out there.
‘A record number of homes entered the market in June — the most since the crash in 2008…we’ve also seen a record number of price reductions’
Sounds like the race to the exits is already underway, and the Fed has just barely begun to normalize rates. Sell now, or get priced-in forever!
“While we saw a record number of homes come on the market in June, we’ve also seen a record number of price reductions. If you’re considering selling your home, or are already on the market, you’ve got to recalibrate your expectations.”
Hey Chris the Realtor, somebody needs to get out there and throw the good people of Glutsville some serious lowballs so they can recalibrate their expectations.
The sky isn’t falling. It is, however, a market in transition beyond the usual seasonal slowdown. It’s not the bubble bursting; there’s no need to panic.
When an REIC “expert” tells you not to panic, it means run like hell.
“Remain calm - all is well!”
https://www.youtube.com/watch?v=zDAmPIq29ro
https://www.youtube.com/watch?v=9LLgXPF2rZ0
Come on everyone, nothing to see here. Just the typical market slowdown or shift after 10+ years of historic low interests rate, 20 Trillions of printed debt, QE to infinity, Operation Twist, etc. Nothing to see here. Housing prices will skyrocket to the moon again and my commission checks will be skyrocketing too. Move along folks….and dont panic. My livelihood depends on everyone staying calm and keep on buying at near peak bubble prices. PLEASE STAY CALM!!! DONT PANIC PLEASE! PLEASE STAY THE F&*K CALM!!!!!!!
It’s interesting, even in DC, the (IMO) likely site for the new Amazon HQ, a real estate segment on DC news radio talked about the proper way to negotiate inspection issues, and to avoid nickel-and-diming the seller. I was quite surprised. My understanding was everything was sold quickly, as-is, with multiple offers, and inspections were purely an FYI for the buyer after purchase. Certainly a sign of a shift away from a buying frenzy.
There was never a buying frenzy in DC after the 2008 crash.
The trashed stuff *did* sell as-is quickly just after the crash — but for substantially below market. And then fix-flipped and sold for market. Everything else has been churning at a slow but steady 3-4% appreciation.
Amazon has been silent, that’s for sure. I don’t believe the claptrap about 50,000 jobs.
Seattle….we brought you grunge rock in the 90’s and the housing bubble bust in 2018
“Last spring, a seller wouldn’t have had to accept a normal offer, with any negotiation and/or contingencies. And a buyer may well have won a bidding war, only to find out much later about the water damage.”
Talk about a double-headed schlonging. Massively overpay for a shack, then find out it’s a money pit due to undisclosed problems. But at least these clever FBs weren’t throwing away money on rent.
Kirkland, WA Housing Prices Crater 18% YOY As Seattle Area Experiences Record High Foreclosures And Distressed Inventory
https://www.movoto.com/kirkland-wa/market-trends/
What kind of country lets its embezzlers and money launderers buy up $21 TRILLION dollars in overseas property and assets? That had to prop up a lot of insane bubbles.
https://www.zerohedge.com/news/2018-09-04/chinese-tax-authorities-join-hunt-21-trillion-overseas-assets
Chinbabwe has been printing money like there’s no tomorrow. It’s absolutely incredible that their currency is worth anything, much less accepted by other countries.
‘It’s not the bubble bursting; there’s no need to panic’
They keep saying that. I’m fine, really. Any of you guys panicked?
Well, I started to panic, then that nice man in the white coat gave me some of that special hot chocolate that turns those peaks and valleys into gently rolling hills.
Nada.
Franklin, MA Housing Prices Crater 14% YOY As Real Estate Salespeople Push Prices Down
https://www.movoto.com/franklin-ma/market-trends/
Ben, if there was one thing I learned from the last housing bubble it was he/she who panic first, panic best. This guy probably had a few investment properties that he needs to unload on some suckers and for that to happen, things need to be calm. I guess you don’t want all the speculators to rush for the exit at the same time now would we
Welcome to Boise…never mind the fires 🔥
http://www.kboi.com/2018/09/04/boise-fire-bond-out-of-money-two-stations-still-need-repairs-or-replacing/
No need to panic … if you don’t own a falling-knife shack!
‘all signs point to a normalization of the real estate scene compared to the last few years, and especially the crazy environment of this past spring’
So a quick reversal after a blow-out of exuberance? That’s exactly what happened in Vancouver, Toronto and Sydney.
Seattle, WA Housing Prices Crater 8% YOY As Microsoft And Amazon Layoffs Accelerate
https://www.zillow.com/fairmount-park-seattle-wa/home-values/
*Select price from dropdown menu on first chart
“As an example, I had buyers looking at a home that had been on the market for 44 days, asking $2.2 million (priced too high), and we went to see it when it was cut to $1.998 million. My buyers made an offer of $1.95 million with contingencies. The listing broker was dismissive and defensive, asking ‘How dare you?’ We withdrew the offer.”
“The buyers agreed to be patient. We waited two weeks, resubmitted the same offer, and it was accepted. However, the sale didn’t go through — the inspection found significant water damage and resulting rot that had not been listed on the sellers’ disclosure. It would have been an expensive nightmare to remediate.”
“Last spring, a seller wouldn’t have had to accept a normal offer, with any negotiation and/or contingencies. And a buyer may well have won a bidding war, only to find out much later about the water damage.”
You see my realtor friend, this is what happens when the housing bubble burst as demonstrated by the greater fool theory. Last spring, people didn’t care if they overbid the asking price by 20% and wave home inspection. Some greater fools will buy the house later for an even more outrage price. Unfortunately, eventually you run out of the greater fools and someone become the greatest fool. This is also known as bagholder, FB, Schlonged, etc.
Ya know once these realturds lose those sweet commission checks they will start selling all there toys to pay there bills (I’m sure many will be in this predicament but I’ll seek out the desperate RE posters) Wouldn’t be surprised to see a ton of listings pop up on CL with “desperate, need to sell ASAP” items. I bought my wife’s Audi Q5 for well under bluebook (18k for bluebook at 28k) from a real estate broker back in the last bubble. We are just about ready for an upgrade
Unfortunately ….
the good agents (defined by sales not integrity) made $$s. They can survive a few years. I wish there was a way to sue the ones the tricked their clients into buying “better buy now or be gone forever”
This is uhmerika, you can sue anybody!
How Dare You? ….. Torpedo Man.
“It’s not the bubble bursting; there’s no need to panic.”
Bubble denial is a strong crash indicator. The move vehement the denial, the more likely it is that a crash is already underway.
“more vehement”
New York County, NY (Manhattan) Housing Prices Crater 12% YOY As US Enters Into Global Housing Bust
https://www.zillow.com/new-york-county-ny/home-values/
*Select price from dropdown menu on first chart
Madison Park is super trendy. It is where you go to a mexican restaurant and the nachos come with crab and it costs $24.
It was one of the areas that MSFTies and Amazonians move when they started having kids. Although if you hang out at the wine bars at lunch, the wives in their yoga pants are a sight to behold.
RE: A report from the Madison Park Times in Washington. “Despite what you may have read or heard, the Seattle real estate market isn’t crashing. The sky isn’t falling. It is, however, a market in transition beyond the usual seasonal slowdown. It’s not the bubble bursting; there’s no need to panic. But all signs point to a normalization of the real estate scene compared to the last few years, and especially the crazy environment of this past spring.”
Ebola
Sherman Oaks, CA Housing Prices Crater 9% YOY As Double Digit Price Declines Engulf California
https://www.movoto.com/sherman-oaks-ca/market-trends/
This must be some zoo to behold!