We’re Seeing Price Reductions Daily
A report from Hamptons Magazine in New York. “For the final issue of this Hamptons season, we gathered a group of panelists to discuss what trends they’re seeing, and what Hamptons homeowners, buyers and residents will be seeing over the seasons to come. Where is the market based on current performance?”
“Broker Dana Trotter: ‘There is quite a lot of inventory. We’re seeing price reductions daily. There may be a little bit of a correction where sellers are becoming more realistic. The high end is where we’re seeing a lot more inventory, and a lot of my buyers are mostly either downsizing or upsizing, so they’re not in a huge rush.’”
The Washington Post. “Although many homeowners and sellers in the Washington area in recent years have reveled in price appreciation and quick sales, buyers have been less celebratory about the hot housing market. A new analysis by Zillow offers a glimmer of hope for buyers in the D.C. area and in about half of the largest metro areas around the country.”
“The more compelling indicator of a potential shift in the market is that about 14 percent of listings across the country had a price cut in June. Between January and June, the share of listings with a price cut increased 1.2 percentage points, the highest January-to-June increase ever reported, according to Zillow.”
“In the Washington area, 15.4 percent of listings had a price cut in June 2018, down slightly compared to 16 percent in June 2017 but up from 13.9 percent in January. The typical price reduction was 2.5 percent in June 2018.”
“Price cuts are most prevalent in high-cost housing markets and on higher-priced listings. However, the market with the highest share of listings with price cuts was Tampa where 22.2 percent of listings had a price cut, followed by San Diego at 20 percent.”
The Denver Post in Colorado. “Apartment rent increases in metro Denver continued to moderate in August, and the chances are strong that desperate landlords may cut more deals in the months ahead, according to two new rent surveys. The median rent for a one-bedroom unit in Denver listed on apartment search engine Abodo fell 2.1 percent to $1,509 the past month, while the rent for two-bedroom units fell 2.64 percent to $1,880″
“‘Apartment vacancies are creeping up and with the huge amount of new developments and apartment starts in Denver, developers are offering concessions in the local market,’ said Sam Radbil, a spokesman for the company.”
“So many units are hitting the market that more developers and property managers are offering price breaks and free months of rent to fill vacant units, he said. Also, with the peak moving season over, leasing managers know the competition will become more intense for the smaller number of tenants out there.”
“‘This isn’t just a trend seen in Denver. All across the country concessions are being made as vacancy rates rise. We expect to see a continued slide in price into the fall season,’ Radbil said.”
“Apartment rents declined even more month-over-month in Aurora and Lakewood, two of the metro’s more affordable suburbs, as well as in Littleton and Glendale.”
The Real Deal on Florida. “More than two years after her death, Zaha Hadid’s condo at the W South Beach just sold for $5.75 million. The late architect’s three-bedroom, four-bathroom corner unit at 2201 Collins Avenue was placed on the market in May 2016 at $10 million following her death. The asking price on what had been three separate units was reduced to $6.5 million in November 2016.”
From Parade on California. “In her six decades-long career, Cher proved she still has what it takes at 72-years-old. Now, the first serious home she created after her divorce from Sonny Bono, which she designed and built in Beverly Hills on four acres in 1980, is on the market with the newly listed price of $68 million: $17 million below its original ask, according to TopTenRealEstateDeals.”
‘So many units are hitting the market that more developers and property managers are offering price breaks and free months of rent to fill vacant units, he said. Also, with the peak moving season over, leasing managers know the competition will become more intense for the smaller number of tenants out there. ‘This isn’t just a trend seen in Denver. All across the country concessions are being made as vacancy rates rise. We expect to see a continued slide in price into the fall season’
For several months the Post has been trying to tell us rents were up. That’s statistical horse hockey. If it doesn’t say effective rents, including vacancy and concessions, it’s phony. Effective rents cuts can be double or triple the face cut.
It is the new math…
Kinda like “the affordable care act with save every family $2500 in premiums…”
Yes it is like the generic congressional polls you see in the MSM. They show a widening lead for the Democrats. Rasmussen has the lead down to four, half of what it was in July. Makes sense with the Atlanta Fed’s preliminarily GDP showing 4.7 percent growth and that factors in the weak housing statistics. But the MSM seems to use new math.
We certainly need more healthcare reform, but since the last few Republican proposals economically gutted pre-existing condition protection and offered no real savings other than those gained by providing less coverage and higher premiums for many (especially cruel to those who have worked their entire lives and have pre-existing conditions), they certainly would have been a step in the wrong direction.
Certainly.
Vs an actual market in healthcare which neither party is interest in.
And everybody everywhere for the rest of time would have free healthcare too, if it wasnt for the deplorables and their meddling frog pepe.
But Trump grabbed his opposition by the front hole and the rest is history.
“And everybody everywhere for the rest of time would have free healthcare too, if it wasnt for the deplorables and their meddling frog pepe.”
The introduction of high fructose corn syrup dashed any hope of an affordable single payer solution. The personal pride index has steadily declined since the seventies.
Add diet soda and non-nutritive sweeteners to the culprit list as well.
Trump is evil. He has this crazy idea that I should only buy a product that I actually need, and not one that the govt thinks I need.
He must be impeached!!!!
There are several buildings in Denver now offering six weeks free rent. This is over an 11% decline in rent (assuming a 1 year lease) most likely not being reflected in the numbers.
‘In the Washington area, 15.4 percent of listings had a price cut in June 2018, down slightly compared to 16 percent in June 2017 but up from 13.9 percent in January. The typical price reduction was 2.5 percent in June 2018′
‘16 percent in June 2017′
So a cut upon a year over year cut. If there were 16% price reductions last summer, this situation isn’t new, as the media would have you believe.
I came across this table:
‘See which Northwest Austin ZIP codes saw the biggest increases and decreases in home prices in July’
‘In July, the 78750 ZIP code saw an 18 percent decrease in home prices while the 78758 ZIP code saw a 15 percent increase.’
That was a 100k haircut in 78750. 78759 got whacked about 50k.
“The Denver Post in Colorado - Apartment rent increases in metro Denver continued to moderate in August, and the chances are strong that desperate landlords may cut more deals in the months ahead, according to two new rent surveys. The median rent for a one-bedroom unit in Denver listed on apartment search engine Abodo fell 2.1 percent to $1,509 the past month, while the rent for two-bedroom units fell 2.64 percent to $1,880.″
The Denver site is blocked unless you subscribe. Are they really referring to falling rents as a moderation in price increases? As I posted last week, Denver has more apartment units under construction per 100k of residents than any city in America. It is only going to get worse, especially since many of the new builds start at more than $2,500 per month for one bedrooms.
Rumor has it Cher’s hit “Gypsies, Tramps, and Thieves” was about realtors.
“‘This isn’t just a trend seen in Denver. All across the country concessions are being made as vacancy rates rise. We expect to see a continued slide in price into the fall season,’ Radbil said.”
I’d say that “continued slide” is going to stretch into many seasons to come, Radbil.
But but but the realtors said real estate is local. Could they be lying? ?
Arcadia, CA Housing Prices Crater 10% YOY As Sales Agents Squeeze SoCal Sellers For Price Reductions
https://www.zillow.com/arcadia-ca/home-values/
*Select price from dropdown menu on first chart
A few weeks ago we were in Denver with the inlaws. Coming back from dinner we drove MLK E past the old airport. The amount of NEW townhouses and luxury apartment complexes was considerable. This all came up in the last 3 years. I have no idea how they will get to 90% occupied and not lose $s.
“‘Apartment vacancies are creeping up and with the huge amount of new developments and apartment starts in Denver, developers are offering concessions in the local market,’ said Sam Radbil, a spokesman for the company.”
Most describe themselves as being in Park Hill or Stapleton, but are on the fringes in what were historically avoided areas for the middle class because of poverty, crime and poor schools.
Ebola
Denver, CO Housing Prices Crater 10% YOY As Weak Homeowners Seek A Way Out Of Underwater Housing
https://www.zillow.com/denver-co-80230/home-values/
https://snag.gy/m5EzRB.jpg
Back in my Army days - we would call that an “indicator”
Also - Can you ever trust a realtor, especially as a buyer?
–> agents were moving to a “less transparent” private treaty sale process to “protect values” of homes.
+++
Housing Wipe-Out: No Bids or Even Bidders at Numerous Australia Housing Auctions
Mish - 9/5/2018
The numbers of potential bidders in recent housing auction in Australia dropped to less than one. Most did not bid.
The dramatic change in the Sydney property market was obvious at two auctions on Saturday that achieved an outcome unheard of just months ago: no bidders turned up.
At the sale of a brand-new four-bedroom penthouse Lidcombe, in Sydney’s almost-inner west, The Australian Financial Review was the only attendee.
There were also no bidders at a three-bedroom unrenovated home in Guildford while a two-bedroom unit at Baywater Drive in Wentworth Point was passed it. That unit had been on the market for nearly a year and its asking price has fallen about 12 per cent in that time.
In Melbourne, buyer’s agent Morrell and Koren’s Emma Bloom said agents were moving to a “less transparent” private treaty sale process to “protect values” of homes. “There are now either no bidders, or one bidder,” she said.
It’s almost time for Australian authorities to trot out the career-saving, “no one could have seen this coming” line.
Great advice for would-be millennial home buyerss: Don’t feel the need to buy when prices are falling. In fact, this advice is what I came up with for myself at a similar economic juncture when I was their age. And five years later, we bought our first house. Some times in life it pays to delay a major purchase.
Should I buy a house if the housing market’s in trouble?
By Kaitlin Menza
Aug. 7, 2018
Let’s say you are the rare millennial who’s actually ready to buy a home. Your student loans are paid off or at least tolerable, your salary and credit score are solid and you’ve scraped together enough cash for a down payment. You’re a unicorn and you defy trend pieces. Then you read a headline about the housing market.
When discussing the American housing market in July, CNBC and Forbes warned of an incoming “crash,” Business Insider raised a “large red flag,” and Bloomberg predicted the “worst slowdown in years.” It’s an ominous forecast for those who were actually considering a home purchase — and even more depressing for young adults already assuming such a milestone was out of reach.
As with many scenarios, it may be better to educate yourself than to panic. Mic spoke with experts for some econ 101-type questions about the market, what’s happening with it now and how people should interpret the news. Spoiler alert: We could all stand to chill.
…
Closing paragraph in this REIC propaganda piece:
“Both options empower you to control your search, instead of sitting back and waiting for bad news to discourage the process. Millennials have had enough terrifying financial news to last their lifetimes.”
Take homes:
1) Don’t let those scary news stories about trouble in the housing market scare you.
2) Real estate always goes up, in the long run. Therefore it’s always a good time to buy.
typical article on housing, lots of words saying very little, like pay attention to zillow.
Lynen, WA Housing Prices Crater 13% YOY As China Recession Ravages West Coast
https://www.movoto.com/lynden-wa/market-trends/
I don’t know if this means anything or not. But in the West LA markets I watch, over the last week (especially Labor Day weekend), there were an unusual number of new listings thrown up without pictures. Could it be people rushing to market before the photos are done just to get ahead of what they expect to be a rush? Anyone else see this in their area?
NorCal (specifically Santa Cruz County) I have been noticing many foreclosures popping up without pictures. All the SFH seem to have pictures but I will keep a look out.
One non-RE-but-bubble-related thing I’m seeing is companies overstaffing just to be sure they’ve got the people they want on their payroll. Usually my industry is more conservative than that…but my experience is in Colorado and this is California, so maybe this is a normal bubble top thing here. All I know is that they might be able to avoid layoffs later if they were conservative but instead they are all in. So I expect some major layoffs later.
One market I watch - an area with roughly 450k people - has seen a 30% increase in inventory for sale, year over year, and 5% month over month price declines. It’s still showing year over year price increases, but that’s why the month over month price declines are so important. That’s how it starts. Over the course of the next 6 months or so, year over year prices should show no gain to negative, and that’s when the real fun begins. Once people collectively realize that, it’s game over.
Winter Park, FL Housing Prices Crater 10% YOY As Demand For Retiree Housing Collapses
https://www.zillow.com/winter-park-fl/home-values/
*Select price from dropdown menu on first chart
Dumb ‘em down, and profit. Even pukes who should have known better.
“The big-name investors who poured money into Theranos will get nothing. All told, investors in Theranos have lost nearly $1 billion.”
Bahahahahahahahahahahahahahahaha.
Read all about it … and gloat …
“Blood-Testing Firm Theranos to Dissolve”
https://finance.yahoo.com/news/blood-testing-firm-theranos-dissolve-041000909.html
B..b..but Elizabeth Holmes wore a black turtleneck sweater just like Steve Jobs. I thought that meant she was some kind of visionary genius so I invested my life savings with Theranos!!!
With her signature red lipstick and uppity poise she’d make a great interracial porn starlet.
Chinese love the super pale ones.
OT - Xanax Use Among Teens Skyrockets As Benzos Overtake Opioids
link -> https://www.zerohedge.com/news/2018-09-03/xanax-use-among-teens-skyrockets-benzos-overtake-opioids
Tesla tanks as Elon Musk’s drug-addled madness continues:
http://www.cnbc.com/amp/2018/09/05/tesla-ceo-elon-musk-calls-british-cave-diver-child-rapist.html
Jason wants to buy my home, writes he will pay a fair price, no realtors no inspection, etc.
Says he won’t resell it , hes a local home buyer looking to purchase more property in my neighborhood. he can pay cash.
Does this marks the top as speculators look for deals to flip ? Is Jason a robot ? A Russian ? A spear phishing attack ? Who knows?
Wut?
The price cuts I’ve seen in the DC metro is due to greed. People have asked for the moon and found no takers. So they lowered their price. Overall, prices are ridiculously high.
Yup and yup. The greed will turn into disperation very soon.