More Disappointed Sellers Are Offering Discounts
A report from the Marin Independent Journal in California. “When Sean Cook put his family’s San Jose home up for sale for more than $3 million this summer, he assumed it would fly off the shelf in a week or two. A similar house in his neighborhood took just three days to sell for $3.3 million in the spring. But two months after Cook’s four-bedroom home in the desirable Willow Glen neighborhood hit the market, he still hasn’t received a single offer — even after he shaved $200,000 off the price last month. ‘Given the way the market has been,’ he says, ‘you feel a wee bit disappointed.’”
“After a record-setting run-up, the Bay Area’s red-hot housing market appears to be cooling. ‘For sale’ signs are lingering longer in homeowners’ front yards, and alerts of price reductions — sometimes for hundreds of thousands of dollars — are cropping up on Zillow. And an array of market data — including sale prices, inventory numbers and tallies of discounted listings — supports the notion that the market has shifted in some counties.”
“Wannabe buyers, discouraged after getting outbid again and again, are pulling back, said Sean Manning, a San Jose-based real estate agent with Sereno Group. An increase in inventory also is allowing buyers to be more selective. More homeowners — unaware that the market has cooled slightly, and excited by the high offers their neighbors scored in previous months — are deciding to list their own properties, Manning said.”
“In Oakland, for example, the number of single-family homes for sale last month jumped 18 percent over the year before, according to MLS data from the Bay East Association of Realtors. Meanwhile, the number of homes sold decreased 11 percent.”
“In Santa Clara County last month, 25 percent of homes sold for less than their asking price, up from 19 percent in August 2017, according to MLSListings. Meanwhile, 68 percent of Santa Clara County homes sold above their asking price last month, down from 75 percent in August 2017. In Alameda County, 27 percent of homes sold for less than their asking price last month, up from 21 percent in August 2017, according to the Contra Costa Association of Realtors.”
“And more sellers — disappointed with a lack of interest in their properties — are offering discounts in an attempt to attract buyers. A recent Zillow report found that sellers in 9.5 percent of San Jose area listings slashed their prices in June, up from 7.2 percent a year ago. Rates of price cuts remained steady in the Oakland and San Francisco areas.”
“The housing market is still extremely strong — it’s just not quite as strong as it once was, Manning said. He sold a house in San Jose this month for $1.36 million, after receiving three offers. Four months ago he sold the house next door — which was the same size — for $1.5 million, with eight offers.”
“Real estate agent Joel Garcia, who recently slashed the price of a house in Oakland — twice — said those price cuts are the first he’s made since 2009. The seller tried to drum up interest by offering to cover the buyer’s closing costs — paying for the realtor and other transaction fees — but to no avail, Garcia said. ‘It’s been sitting on the market for two months now,’ Garcia said of the five-bedroom home, now priced at just under $1 million. ‘Normally it only takes a week, two weeks, and it’s gone.’”
“Diane Whitney, 55, put her San Jose condo up for sale in early July, hoping to cash out at the peak of the market and use her windfall to buy a cheaper home outright in Oregon or Washington. Two months later, after dropping the price $45,000, Whitney worries she missed the peak. ‘I wasn’t prepared for it, I’ll be honest,’ Whitney said, of the disappointing reception her home has received. ‘I’m revisiting why I’m moving, and what my feeling is.’”
“Whitney listed her two-bedroom condo for $735,000, and after seeing no offers, reduced the price to $690,000 at the end of August. But even with the discount, Whitney, who paid $115,000 for the home in a foreclosure sale 22 years ago, will walk away with a hefty profit.”
“Four months ago, Whitney’s condo would have sold in days with multiple offers, said Mike Gaines, her real estate agent. Cook, the owner of the San Jose that’s been on the market for two months, is in a similar position — he and his wife paid $1.9 million in 2012 for the house now listed at $2.995 million.”
‘San Jose home up for sale for more than $3 million this summer, he assumed it would fly off the shelf in a week or two. A similar house in his neighborhood took just three days to sell for $3.3 million in the spring. But two months after Cook’s four-bedroom home in the desirable Willow Glen neighborhood hit the market, he still hasn’t received a single offer — even after he shaved $200,000 off the price last month’
San Jose Eeee-bola!!
So that’s 500k of poof in a few months and no offers. This thing is moving fast.
Sure is. It’s fun to watch first hand right in my own backyard
Can’t wait for the September numbers to come out.
+1
August numbers will be out sep 20, I would expect more of these stories / reports to follow. Sure seems likely or this one has a much faster trajectory than B.1
I’m betting that millions of FBs who overextended themselves financially to buy more house than they could reasonably afford did so under two assumptions: 1) RE only goes up; and 2) a Greater Fool could always be counted on to come along to take their shack off their hands for at least whatever they paid, minimizing downside risk.
Now picture said FBs, shocked and bewildered as they read the latest data indicating their assumptions were dead wrong, and THEY are the Greater Fools. At this point they may already be tens or hundreds of thousands of dollars underwater, with the downward trajectory accelerating. At that point we won’t be dealing with seller “disappointment” - panic is going to take over as they try to cut their losses and get out from under their alligator. But the proliferation of “for sale” signs and “price reduced” is only going to reinforce buyer perceptions of a bursting housing bubble, which for anyone but a drooling imbecile means wait out the crash and buy only after RE bottoms out. Sorry, Suzanne, your research is bullish*t, this listing isn’t special, and now is emphatically NOT the right time to buy.
Gosh, it’s good to be a renter and a gleeful spectator as this sh*t show unfolds.
it’s good to be a renter and a gleeful spectator
That whole second paragraph was beautiful poetry.
Millennial first-time used house buyers in Denver, this is exactly the fate that awaits you.
The great news about the slow down on the coastal markets in California, Washington, and Oregon mean that as the tide recedes, a lot of the funny money gets sucked back out of it. Utah, Nevada, Colorado, Idaho, and Arizona will probably start seeing a correction that lags that of California’s. This happens all the time as the equity locusts get mowed down in CA and they can no longer take their cash outs to Boise, Salt Lake, and Denver.
so here in Seattle, i know folks that have moved up to more expensive houses. They qualified with (theoretically) high spending on mortgage payments of their regular salary.
In practice, they send the kids to private school, take decent vacations etc. What they count on is good annual bonus, and cashing in stock grants/options - to keep this us. Think Amazon/Microsoft/Google.
I wonder if this goes on in the bay as well.
I think the same thing . CA goes down, oh damn, better sell the 2nd home in Austin , damn that’s underwater , better sell the 3rd home in Raleigh to salvage the 2nd home and hopefully save the CA HOME.
“CA goes down, oh damn, better sell the 2nd home in Austin , damn that’s underwater , better sell the 3rd home in Raleigh to salvage the 2nd home and hopefully save the CA HOME.”
That’s not Ebola you describe. It’s a NUKULAR CHAIN REACTION!
A question to consider is whether the initial asking price was in line with recent comps. The inability to sell at recent price levels is quite a different story than if he started out with a Dutch auction price far above what the market could reasonably be expected to bear.
I’m in Santa Monica, for sale signs on every corner, counted 14 at one intersection. Wife wants to move spring 2019, hope we see a 10% correction by then, otherwise i’d be jumping strait into the fire.
“The housing market is still extremely strong — it’s just not quite as strong as it once was, Manning said. He sold a house in San Jose this month for $1.36 million, after receiving three offers. Four months ago he sold the house next door — which was the same size — for $1.5 million, with eight offers.”
Sean be thankful you suckered that last FB in to buying anything right now. Once reality sets in and the sheeple no longer buy into the hype you vultures have been feeding them, it will be a rude awakening for you. Some career options for Sean to look into https://www.inman.com/2016/10/31/5-side-hustles-you-can-start-in-slow-times/
‘He sold a house in San Jose this month…Four months ago he sold the house next door’
Last one out turn off the lights.
Last one out will most likely get stucco.
So nice to see “Get Stucco”. Looks like victory (or at least a nice correction
.)
“If they are not victorious, let none of them some back alive!” - Patton (The movie).
“some” = “come”
(damn iPad😠)
I suspect September will go down as a pivotal month, when Fear of Missing Out (FOMO) turns to Fear of Getting Schlonged (FOGS). When the hard data shows inventories soaring and sales and prices dropping (if not plunging), the pipeline of Greater Fools is going to slow to a trickle, accelerating the overhang of supply and pressure to slash prices. In that scenario, would-be buyers are going to see right through realtor snake oil and realize that downside risk vastly outweighs upside potential in a bursting housing bubble.
Reminds me of an island reversal, something one might find on a stock chart now and then.
Here …
https://goo.gl/images/iz8hMj
‘Diane Whitney, 55, put her San Jose condo up for sale in early July, hoping to cash out at the peak of the market and use her windfall to buy a cheaper home outright in Oregon or Washington. Two months later, after dropping the price $45,000, Whitney worries she missed the peak. ‘I wasn’t prepared for it, I’ll be honest,’ Whitney said, of the disappointing reception her home has received. ‘I’m revisiting why I’m moving, and what my feeling is.’
“What does bargaining mean in the five stages of grief?”
“American psychiatrist Elisabeth Kubler-Ross proposed five stages of grief that are often worked through during the grieving process. These stages include denial, anger, bargaining, depression and acceptance. The bargaining stage may occur prior to loss as well as after loss, as an attempt to negotiate pain away.”
‘after seeing no offers, reduced the price to $690,000 at the end of August. But even with the discount, Whitney, who paid $115,000 for the home in a foreclosure sale 22 years ago, will walk away with a hefty profit’
I can hear Diane’s neighbors, “Don’t screw up the comps!”
use her windfall to buy a cheaper home outright in Oregon or Washington
Ben we need more articles about how unwelcome California equity locusts are in Oregon and Washington. The pic of the Toyota Prius vandalized with spraypaint “go back to California” was pretty epic.
And for those Oregon / Washington markets dependent on outside money, where prices have disconnected from local incomes, well, we know what happens next -);
it is bad in 1. San Juan county (basically the San Juan Islands like Whitby, Orcas, Lopez) 2. Wine country in Eastern WA.
My god they go around spending $s - and then complaining that the resturants, town rec facilities etc. are not up to their standards. Oh well
‘Diane Whitney, 55, put her San Jose condo up for sale in early July, hoping to cash out at the peak of the market and use her windfall to buy a cheaper home outright in Oregon or Washington.’
The locust money has eviscerated affordability for native Oregonians and Washingtonians. Ask those people how they feel about the Dianes of the world, and they won’t have kind words.
‘I wasn’t prepared for it, I’ll be honest,’ Whitney said, of the disappointing reception her home has received. ‘I’m revisiting why I’m moving, and what my feeling is.’
Market forces don’t give a rat’s ass about your feelings, Whitney.
$620,000 of gain wasn’t enough for her?
The entitlement mentality of Clownifornians is sickening.
Whitney listed her two-bedroom condo for $735,000, and after seeing no offers, reduced the price to $690,000 at the end of August. But even with the discount, Whitney, who paid $115,000 for the home in a foreclosure sale 22 years ago, will walk away with a hefty profit.
The story tells us that Whitney made a hefty profit between what she paid for the house and what she sold. However, it does not tell us what Whitney really walked away with from the sale. What we do not know is how much money has to go to pay for home equity mortgages. Perhaps Whitney is facing the reality that the ATM card is being canceled and days of living beyond her means is behind her. She still did well in the housing lottery but it is sad to lose the golden goose.
Without the phony appreciation even the richy rich parts of CA would experience a much lower standard of living. Just a massive facade hiding a crumbling society brought to us by our betters.
Millenials are going to get rocked in this one - crypto, social media and now housing. I assume they’ll get religion for 5-10 years and then proceed to screw the next generation as best they can, taking a page from their boomer parents - the original vampires.
California ties for most impoverished state in the union:
“Nearly one in five Californians were living in poverty last year despite the state’s vigorous recovery from the Great Recession and its low unemployment rate.”
“The latest numbers, a reflection of the state’s high housing costs and low wages, show 19 percent were poor, some 7.5 million people. The calculation, released Wednesday by the U.S. Census, represents a 1.4 percent improvement over 2016.”
“California was statistically tied for first with Louisiana and Florida as having the highest poverty rate among the 50 states. Nationally, 14.1 percent of Americans were poor.”
“The agency’s Supplemental Poverty Measure is considered to be the most accurate yardstick because it takes into account the local cost of living and benefits from government safety net programs.”
https://www.ocregister.com/2018/09/12/californias-19-poverty-rate-though-improved-ties-state-for-first-in-u-s/
Greed of this particular variety gets underplayed, but it has had a huge effect, particularly the speculators who contributed to the temporary, artificial shortage narrative by waiting to sell because they were trying to time the bubble just right.
Before the price reduction, this woman would have made a 539% return. After the price cut, it’s down to a measly 500%, and she’s questioning the meaning of life and radically changing her plans?
Why, oh why, do bad things happen to good people??
Oh the humanity.
“this woman would have made a 539% return.”
Less decades of interest, taxes insurance and rapid depreciation.
Don’t forget that lovely HOA payment
Tustin, CA Housing Prices Crater 9% YOY As Flood Of Housing Inventory Languishes In Orange County
https://www.movoto.com/tustin-ca/market-trends
The next shoe to drop: rising foreclosures.
https://wolfstreet.com/2018/09/16/what-can-cause-the-next-mortgage-crisis-in-the-us/#comments
Mortgage delinquencies at all commercial banks in the US inched down to 3.14% in the second quarter, the lowest since Q2 2007, according to the Federal Reserve. But after those soothingly low delinquency rates in 2007, something happened. By Q3 2008, the delinquency rate hit 5.2%, and in Q4 2009, it went over 10%, and stayed in the double-digits until Q1 2013. This was the mortgage crisis. And we’re a million miles away from it, thank God. Or are we?
i still have equity to spend.
I still have checks in my checkbook.
are you sure your Tinder date did not walk off with a few?
I’m into dine-and-dash, like this guy …
“LA’s Notorious Dine-And-Dash Dater Strikes Again - Eater LA”
https://la.eater.com/2018/5/11/17336976/dating-dine-and-dash-los-angeles-restaurants
It’s fun to allow the Tinder date to think she is going to pull a fast one until … poof, I’m gone.
Bahahahahahahahahahahahahahahahaha.
My credit card still hasn’t reached its expiration date.
Foreign Buyers Spent 49% Less on BC Real Estate as Credit Contracts
Steve Saretsky
Published on Sep 15, 2018
With BC’s property market cooling, home sales declined 24% in July to a six year low, it appears interest from foreign buyers is also fading. At least according to official BC Government data.
Of the $9.9 billion spent on BC residential Real Estate in July 2018, foreign buyers accounted for a mere $201 million. This was a 49% decline from July 2017.
With both local and foreign capital contracting, this will ultimately leave behind an uncomfortable debt hangover.
China remains a wild card, having stimulated its economy with a 25% increase in M1 and an additional of 30% of debt/GDP in 2016. Unsurprisingly, much of that money and debt growth fuelled the housing boom. The stimulus is wearing off and monetary policy has tightened. House prices are rolling over in China’s Tier 1 cities and that has also impacted other global property markets.
https://www.youtube.com/watch?v=nETfpACoSlY
‘An increase in inventory also is allowing buyers to be more selective. More homeowners — unaware that the market has cooled slightly, and excited by the high offers their neighbors scored in previous months — are deciding to list their own properties’
Wa? But shortage? Where did these shacks come from?
‘In Oakland, for example, the number of single-family homes for sale last month jumped 18 percent over the year before…Meanwhile, the number of homes sold decreased 11 percent’
Lower prices = lower sales? That’s not how supply and demand works. It is consistent with a speculative market though. Oh, wait…
‘excited by the high offers their neighbors scored in previous months — are deciding to list their own properties’
Where’s the supply and demanders with the “we need to build shacks to make prices go crater”?
‘alerts of price reductions — sometimes for hundreds of thousands of dollars — are cropping up on Zillow’
Oh dear…
Where’s pat? You know, the guy who popped up here recently saying “prices aren’t down in California!”
Eat your crow pat!
Either the biggest idiot or the biggest liar among realtors. WARNING: a couple minutes of this video will make you lose your lunch:
https://www.youtube.com/watch?v=SBjXUBMkkE8
Think that realtard is both an idiot and a liar as are many. The foreign investor bus tour was ridiculous. The lady had her hype sales pitches for them and they all ate it up. Her highlights of: “this condo is situated further from the freeway than other condos so you don’t hear the traffic quite as much oh and don’t mind the asbestos, it’s only in the upstairs bedrooms”. Would be nice to see the follow up documentary as those bus tours are now gone, foreign investors have dried up, reality is setting in. I have to go over to the area for meetings from time to time and between the traffic, crowded shops / restaurants, every man for himself mentality (most people don’t greet others or say normal things like excuse me after bumping into you), it reminds me of being in another world full of hypnotized people or robots. I just don’t get why anyone would want to live over there aside from the proximity to work. At least in my drug infused zombie town the majority of people (not the tweekers that rob us) have kindness and curtesy towards others (Mabye it’s the weed).
“More homeowners — unaware that the market has cooled slightly, and excited by the high offers their neighbors scored in previous months — are deciding to list their own properties, Manning said.”
“In Oakland, for example, the number of single-family homes for sale last month jumped 18 percent over the year before, according to MLS data from the Bay East Association of Realtors. Meanwhile, the number of homes sold decreased 11 percent.”
****
Wow. Count the BS in this one. “High offers” here have been going on for the last several years, but suddenly last month inventory is up 18%?
Bring it on.
“The real estate agent selling this five-bedroom home on Golf Links Road in Oakland (pictured on the right) reduced the price $100,000 since putting it on the market two months ago, but has yet to receive an offer. The price now is $998,888. (Photo courtesy of Joel Garcia of Coldwell Banker)”
The 888 tell me Joel is looking for a Chinese buyer.
Is 8 a lucky number in China or something?
Golf Links road.
How much is the membership cost for the club &/or green fees?
Bahahahahahahahahahahaha … years ago I knew a puke who thought he possesses some substantial bragging rights because his house was located RIGHT AT the golf course. But his windows kept needing replacements because golfers kept whacking golf balls through them.
Yes. 888 is very lucky
Imagine how lucky $888,888 will be.
$8,888,888.88, anyone? A Chinese investor could ask for that sale price and see if a lucky buyer will step up with a lucky full price offer.
Danville, CA Housing Prices Crater 16% YOY As Feds Ramp Up California Mortgage Fraud Investigations
https://www.movoto.com/danville-ca/market-trends/
UK housing market slows with weakest sales in five years.
https://www.telegraph.co.uk/business/2018/09/16/housing-market-slows-weakest-sales-five-years/
Are you HODLing out hope for a return of Bitcoin to $20,000, even as it circles the drain at 1/3 its recent peak price?
telegraph.co.uk
Bitcoin under pressure as collapsed cryptoexchange unwinds $1bn of digital currency
Hasan Chowdhury
16 September 2018 • 12:35pm
Bitcoin investors could face a fresh round of intense selling pressure as a collapsed Japanese cryptocurrency exchange is forced to payout $1bn worth of digital coins, experts have warned.
The digital currency, which has already plunged in value from $17,035 in January $6449 yesterday, is set to slide further in the coming weeks as Mt.Gox, a bankrupt Bitcoin exchange, pays out thousands of coins to creditors.
Kim Nilsson, who has led a four-year campaign to reclaim his stake in the defunct exchange, told the Sunday Telegraph the flood of payouts threatens to “completely crash the market” in Bitcoin.
https://www.telegraph.co.uk/technology/2018/09/16/bitcoin-pressure-collapsed-cryptoexchange-unwinds-1bn-digital/
Why Bitcoin is even still treading water at over $6k is beyond me. This crypto nonsense is the dumbest bubble human beings have ever participated in.
Are you ready for rates to go higher and higher and higher? Could be a good chance for savers to finally start earning interest agan on their account balances.
Bloomberg
markets
Fed’s Brainard Sees Gradual Rate Hikes Over Next Year or Two
By Matthew Boesler
and Rich Miller
September 12, 2018, 9:45 AM PDT
Updated on September 12, 2018, 11:48 AM PDT
- Rates could rise above long-run neutral level, she says
- Brainard calls outlook for U.S. economic growth ‘solid’
Ex-NY Fed Chief Dudley Says Fed Is Doing the Right Thing on Rates
Federal Reserve Governor Lael Brainard said she sees the central bank gradually raising interest rates over the next year or two, possibly to more than 3 percent, as government stimulus provides “tailwinds to demand.”
In her first speech on the economy since late May, Brainard gave an upbeat assessment of the economic outlook on Wednesday, saying that growth was likely to remain “solid” while describing the labor market as “strong.”
“Over the next year or two, barring unexpected developments, continued gradual increases in the federal funds rate are likely to be appropriate to sustain full employment and inflation near its objective,” she told the Detroit Economic Club.
The comments add to signs that the Fed will raise its benchmark overnight federal funds rate by a quarter percentage point this month, as widely expected, from its current target range of 1.75 percent to 2 percent. Investors have also recently increased their bets on a fourth 2018 hike at the Fed’s meeting in December.
…
Bring on 10% savings accounts. I could retire early.
Professor, did you see my revised link to the Nasa FCU 3.25% for a 15-month CD? That’s not nothing!
When the wave breaks there, don’t be here: The story of Laurie Towner
“Affectionately known as the ‘big three’ the surf industry’s biggest players Rip Curl (Torquay, Vic), Billabong (Gold Coast, Qld) Quiksilver (Torquay, Vic) all have their roots in Australia.”
“By the late 1990s the industry’s value was estimated at $10 billion. Fast forward to the late naughties, the industry bubble was ready to burst.”
https://www.youtube.com/watch?v=fWuq__ZZfAU
That was good. Here’s an interesting interview with Laurie Towner …
Big Wave Surfer Laurie Towner Discusses Life After Being Dropped by a Major Sponser | SURFER Magazine
https://www.surfer.com/features/laurie-towner-cloudbreak-no-sponsor/
The blame game has started in Australia, as the corporate media says “We’re all to blame.” (Because when everybody is responsible, nobody is accountable, least of all the fraudsters at the central banks, the captured regulators and enforcers who turned a blind eye to bankster fraud and criminality, or the media touts and shills who propagated the “Everything is Awesome!” narrative for their oligarch controllers to herd the muppets into a doomed housing bubble.)
https://www.9news.com.au/2018/09/16/03/13/60-minutes-housing-market-prices-mortgage-economy-property
These drops in prices are getting boring but predictable. I wonder what kind of spin will be put out when you start seeing the 80 - 90+% drops in prices?