Price Cuts And Long List-To-Sell Times
A report from KIRO 7 in Washington. “Buyers and sellers in the Seattle area are feeling the triumph and pain of a cooling real estate market in Western Washington. Numbers released by the Northwest Multiple Listing Service show the number of homes on the market in the area is up 11 percent to 18,580 active listings, the highest it’s been since 2015. But sales are down; in King County, pending sales are down 23 percent and in Pierce County, they’re down 12 percent. The new data also shows a $57,000 decrease in the median price of a home in King County in just three months. In August of 2018, the median price of a King County home was around $669,000. In May of 2018, it was more than $726,000.”
“The cool-down in the sizzling hot real estate market is being felt by Catherine Sabol and her family, whose home in Renton has been on the market for about a month. ‘What were your expectations when [your home] first went on the market?’ KIRO 7 reporter Linzi Sheldon asked.”
“‘We were hoping—to be honest, multiple offers would come in within a two-week period and we would be a quick sale and be able to move on to our new home,’ Sabol said. ‘But that just wasn’t the case this time and it has been a tad bit slower.’”
“‘I think sellers need to be a bit more realistic in terms of how they’re pricing their properties and adjust their expectations,’ John L. Scott real estate agent Nelya Calev said, ‘because I’m still seeing a lot of sellers who will say, ‘Oh no, the market’s hot and hopping.’ Yes, if you price it right.’”
“‘The big thing I see is that competitors are more reasonable with their offers,’ buyer Liat Arama said. ‘So I don’t see those ‘Cash only, no contingencies’ offer competitions as much as I used to see, which is awesome. I think the market is becoming normal, reasonable,’ Arama said. ‘It was crazy; (it) was too hot. And it’s now the way a real estate market should be.’”
“Sobol said she and her family are being realistic and believe with summer vacation over, a buyer is just around the corner. ‘We understand because the market has been changing and there’s a lot going on in our economy right now,’ she said. ‘So we’re open. We know we’ll get there. It’ll just take a little longer.’”
From WTOP on DC. “When talking about D.C.’s hottest housing markets, new H Street, Columbia Heights and Petworth waterfronts usually float to the top. While Upper Northwest sells, overall the ultra high end of D.C.’s housing market has slowed, and multimillion dollar properties are the most likely category to see price cuts and long list-to-sell times.”
“‘A lot of foreign buyers have dried up because their home countries are making it harder for them to divest assets, and also it is more difficult for LLCs to buy because they now have to be named as to who the buyer is,’ Corey Burr, with TTR Sotheby’s International’s Chevy Chase office, told WTOP.”
From Crain’s Chicago Business on Illinois. “A home on Oak Lake Drive in Barrington Hills sold at the end of August for less than its sellers had paid for it a full 16 years earlier, the latest in a series of gloomy data points in the affluent far northwest suburbs. The luxury property market has been weak in many suburbs this year, particularly those that lie far outside Chicago, but nowhere as weak as in the Barrington area, which includes the towns of Barrington, North Barrington, South Barrington and Barrington Hills.”
“‘Everyone’s attention has really shifted toward living in the city, and we’re so far from that,’ said Judy Gibbons, a Jameson Sotheby’s International Realty agent who focuses on the Barrington area.”
“At the end of August, the number of homes sold in the Barrington area was down more than 14 percent from the first eight months of the previous year, according to Midwest Real Estate Data figures posted by the Chicago Association of Realtors, and the median price of homes sold year-to-date was down a little more than ten percent.”
“From Burr Ridge in the southwest suburbs to Lake Bluff at the northern tip of the North Shore, no other place had as negative a combination of indicators. In Lake Forest, which is about as far north as the Barringtons are northwest, sales were up more than five percent and the median price down about four percent in the same period as the Barrington area’s double-barreled droop.”
“The hilly, sometimes bucolic landscape around the Barringtons is peppered with examples of the droop. In South Barrington, a 22,000-square-foot house on Star Line first hit the market in 2015, asking $10 million. The asking price is now $3.75 million. In Barrington Hills, a five-bedroom house with a 14-car garage on five acres on Plum Tree Road has been on and off the market several times since first going up for sale in April 2006. It’s now priced at a little under $1.2 million. In Barrington Hills, a 1920s home on five acres on Merri Oaks Road, whose seller wrote a country song from the perspective of the house, is priced at about $1.2 million, or less than half the 2015 asking price.”
‘overall the ultra high end of D.C.’s housing market has slowed, and multimillion dollar properties are the most likely category to see price cuts and long list-to-sell times’
DC Eeee-bola!
‘ultra high end’
And again, the highest stuff falls first.
‘the latest in a series of gloomy data points in the affluent far northwest suburbs. The luxury property market has been weak in many suburbs this year’
And again!
Ben, what happened to all those rich foreigners with boatload of cash in hands? NAR said this time is different and there is no bubble. Just forever shortage and house prices to the MOON and beyond!!!!
They are listing their shacks.
Oakton, VA Housing Prices Crater 9% YOY As Federal Layoffs Scorch Fairfax County Home Values
https://www.zillow.com/oakton-va/home-values/
*Select price from dropdown menu on first chart
‘We were hoping—to be honest, multiple offers would come in within a two-week period and we would be a quick sale and be able to move on to our new home…’
Let me guess Linzi: you have already borrowed for another shack and are paying two mortgages?
‘But that just wasn’t the case this time and it has been a tad bit slower’
And you’ve done this before?
“And you’ve done this before?”
That little qualifier of ‘this time’ caught my eye as well. Proof that being a home purchaser doesn’t equal happiness.
Just renting from the bank with ‘grass is greener’ moving from the rent-free subconscious into the rent-free conscious. Property ladder = slavery.
Hoping is not a marketing strategy.
Bet me! Hope is what entices ignorant pukes to come into my bank and plead for an opportunity to sign up for decades of debt slavery. That and stupidity.
I’m almost at the point (for amusement purposes) of requiring these pukes to author a letter to me convincing me why I should grant them the opportunity to screw over their miserable lives.
I see excuses from all over the country as to why their home hasn’t sold. You better start lowering your expectations Mr. and Ms. Seller
“Sobol said she and her family are being realistic and believe with summer vacation over, a buyer is just around the corner”
Sure Sobol. Nothing better to do after a long, relaxing vacation then to start a bidding war with criminals overseas with dirty money! Don’t forget the winner gets to buy at PEAK housing bubble price!
I have a feeling that Sobol will become a landlord soon!
Isn’t peak selling season more like May/June/July? This isn’t the first summer to come along.
For the first time ever, All the potential buyers went on vacation in summer 2018 which caused the current market “cooling”. This was said by a realtor in one of Bens previous posts.
said by a realtor
Realtors are liars.
HAHA I was thinking of the same thing. It’s 24 percent down YOY!
I think the market is becoming normal, reasonable,’ Arama said. ‘It was crazy; (it) was too hot. And it’s now the way a real estate market should be.’”
No, Liat (or should I call you Liar?). The way real estate should be is 3X median income. Anything else is a distorted market.
BTW, when you had “over emotional” buyers looking at shacks a few months back, were you and your fellow realtors calling the market crazy and too hot, or did you “advise” your “clients” to increase their bids so they wouldn’t “lose out”?
“Sobol said she and her family are being realistic and believe with summer vacation over, a buyer is just around the corner.
Sure there is, if you drop the price drastically enough to snare the fast-diminishing pool of knife catchers. Otherwise, have fun chasing the market down.
“Numbers released by the Northwest Multiple Listing Service show the number of homes on the market in the area is up 11 percent to 18,580 active listings, the highest it’s been since 2015. But sales are down; in King County, pending sales are down 23 percent and in Pierce County, they’re down 12 percent. The new data also shows a $57,000 decrease in the median price of a home in King County in just three months.”
Tatonnement adjustment is underway.
“‘A lot of foreign buyers have dried up because their home countries are making it harder for them to divest assets, and also it is more difficult for LLCs to buy because they now have to be named as to who the buyer is,’ Corey Burr, with TTR Sotheby’s International’s Chevy Chase office, told WTOP.”
Horrors! The real question is, why did it take so long before any attempt was made to curb foreign money launderers, embezzlers, and dodgy oligarchs from parking their ill-gotten gains in U.S. real estate? Oh, right, the NAR and its scumbag lobbyists insisted on loopholes in legislation that would enable criminals to launder illicit proceeds through U.S. real estate with impunity. I don’t care how many millions in loot these grifters “invest”: I don’t want them or their dirty money infesting my country.
in Kirkland WA, there was a situation recently. A buyer (son of a business owner in https://en.wikipedia.org/wiki/Shenzhen).
He bought a high priced water view home in Kirkland with 50% down. Within 15 months, they took took out a 40% HELOC on the appreciated value (now 20% more than when the house was purchased).
The interest payments never happened (not even the first one). I am not sure how KeyBank will account for any loss - but i am hoping that they (not the FHA or Fredie or Fannie) will take the loss.
Great way to cleanse some money streams
Reducing the amount of dirty foreign money entering the U.S. to be laundered could be a good first step to restoring affordability for American families who just want a place to live.
a good first step to restoring affordability for American families who just want a place to live
You say that like it’s a goal for more people than just us.
We seem to believe that expensive housing is a social good. We don’t think the same about cars, groceries, medical care or any of the other necessities of modern life. Dirty money hiding in your housing sector perhaps even letting units stand empty, well I could see that as a bad thing.
“Numbers released by the Northwest Multiple Listing Service show the number of homes on the market in the area is up 11 percent to 18,580 active listings, the highest it’s been since 2015. But sales are down; in King County, pending sales are down 23 percent and in Pierce County, they’re down 12 percent.”
Remember when NAR said the reason why sales is down is because there was low supply of houses??? I guess this destroy that myth/lies. Ultimately, I guess no one wants to buy at the top of the housing bubble.
“The new data also shows a $57,000 decrease in the median price of a home in King County in just three months. In August of 2018, the median price of a King County home was around $669,000. In May of 2018, it was more than $726,000.”
It looks like Cathy brought at peak and is now trying to unload her house post-peak. Come on Cathy, it looks like you should have sold your place before you brought another one. Maybe you would wishing that prices were still going up and up. Now, you are caught behind the 8-ball. Don’t worry you will be riding the bubble burst down LOL
“Ultimately, I guess no one wants to buy at the top of the housing bubble.”
Well, not no one. A former co-worker told me last week that his mid-20s daughter just closed on her place. Ermagerd.
…this was in Seattle…
Sometimes the best lessons are taught the hard ways!
“Sometimes the best lessons are taught the hard ways!”
… to somebody else.
Let somebody else pay the tuition, suffer the pain. Set up a lawn chair and watch. Perhaps take notes, just as you did in high school.
Their pain, your gain.
Let somebody else pay the tuition, suffer the pain.
Not that you don’t have an extra credit plan for the bright ones.
Provo, UT Housing Prices Crater 9% YOY As Labor Force Participation Rate Slips To 41 Year Low
https://www.movoto.com/provo-ut/market-trends/
“…a 1920s home on five acres on Merri Oaks Road, whose seller wrote a country song from the perspective of the house, is priced at about $1.2 million, or less than half the 2015 asking price.”…”
So, we have morphed from buyers writing letters promising to feed the squirrels to sellers writing country songs.
That whirring sound you are hearing is So-Cal auto huckster Cal Worthington spinning in his grave.
https://en.wikipedia.org/wiki/Cal_Worthington
It’s Cal Worthington and his dog, Spot!
LOL! I remember those silly ads.
I can’t believe the news today
Oh, I can’t close my eyes and make it go away
How long, how long must we sing this song?
How long? How long?
The Tractors, “World’s Biggest Fool”
Never thought I’d ever be best in the world at anything
Like Babe Ruth with a bat or Muhammad Ali in the ring
But that was before you came my way and made me all I am today
Bigger they come harder they fall and me I’m the biggest fool of all
I’m the world’s biggest fool everybody knows my name
Folks all come from miles around just to see me hit the ground
Just to watch me take a fall
I’m the world’s biggest fool that’s my claim to fame
From Tennessee to Tokyo I’ve hit a new record low
I’m the biggest fool of all
https://www.youtube.com/watch?v=rEMJVJtybBY
https://www.youtube.com/watch?v=LQZLPV6xcHI
Buyer’s strike working
watch the debt donkeys squirming
just say no, don’t buy
-a bubble haiku
Danville, CA Housing Prices Crater 7% YOY As Multi-Year Decline In China GDP Ravages California
https://www.movoto.com/danville-ca/market-trends/
I get these market analysis emails for the Folsom/El Dorado Hills area from Redfin. One interesting thing is that while they still show prices up year over year, up until a couple of months ago I think they showed the average/approximate number of competing offers as 3 per sale. Now they show it as 1. To me that seems significant…I wouldn’t expect prices to keep rising if there’s not much competition now.
they Probably round up to 1 from 0
Maybe. But they still show 99.x% of listings as eventually selling. I expect that to be the next number to crack.
A family member of mine is selling a home out in your neck of the woods (I think daltry st?). They thought it would sell in days after listing as they put in a good amount of money to get it turn key (advise from the realtor and all the realtors contractors did the work which I found a little suspect). Well they are going on week two with no offers so they are reducing the price. They won’t be out any money as it was payed off and bought low but if they would have listed it a couple months back it would have likely sold.
Yeah, I think I see the one you’re talking about. I’m not a fan of the modern shades-of-gray interior treatment but obviously a lot of people are. It probably would have sold quickly and easily a few months ago.
I like that location because it’s close to my work, but my wife isn’t interested because it’s not where the schools are that she wants. She’s one of those people.
I don’t know whether a quick price reduction would solve their problem or if they’d rather just hang on. I’m noticing the price reductions getting more serious in the area we’re looking.
I have sent a few emails out to some listings locally to see what kind of responses I would get (for my own amusement). I got a response from a realtor this morning about a property I questioned asking if the seller really thought they would get the 1.2m for there shack. His response:“True the market has been softening, and I think there may be some price negotiability at this time.” There’s more but it’s all realtor BS and fluffing. I noticed the seller dropped the price today.
https://www.redfin.com/CA/Santa-Cruz/4310-Gladys-Ave-95062/home/2268287
first hit the market in 2015, asking $10 million. The asking price is now $3.75 million.
Now that is some haircut!
Little more from that article
“”Having a large estate isn’t the draw anymore,” she said, “so we parceling off the five acres creates a different marketing pitch to families that might want to come up here for the quiet lifestyle,” Noyes said. ”
I’m thinking the ridiculous price tag may have been the culprit to your shack not selling but yeah go ahead and split up that lot and let me know how that works out for ya
https://youtu.be/3MzZETTWFW4
Comedy gold right here. Flash forward a year and Glenn is not sounding so credible anymore.
Kelley Mansion Breaks Bed Stuy Record With $6.275 Million Sale
The seller, retired advertising executive Claudia Moran, who has lived in the Kelley mansion since the ’80s, always said she intended to sell to someone who would take care of the building and not tear it down.
https://www.brownstoner.com/real-estate-market/bed-stuy-real-estate-record-john-c-kelley-mansion-247-hancock-street-brooklyn-sale/