The housing market is starting to crack—Sellers are cutting prices at record levels as ‘You can no longer price based off of where sales were’
by Existentialidiot83
The housing market is starting to crack—Sellers are cutting prices at record levels as ‘You can no longer price based off of where sales were’
by Existentialidiot83
23 comments
I want to believe this is real but I’ve been burnt so many times. Housing market finally comes down and house prices drop… 3%… then go back up 20% in the following years.
Surprise Pikachu?
Landlocked area in the midwest checking in: prices have come down to the point that the interest rate hike NEGATES ANY SAVINGS in prices coming down.
Fucking frustrating.
I need it all to come tumbling down
Most people are locked into low rates at record high prices. I wonder what percentage of homeowners are underwater.
I live in a historically hot housing market and I’m starting to see listings with price reductions. Prices are still high but not as high.
I got so lucky getting my place in 2021 at 3.50%. I legit feel grateful for that and terrible to anyone new to the market. If I’d have bought just a year later I would have been stuck in my overpriced apartment.
These interest rates are ridiculous. 7% is just insane.
Now talk about monthly payment vs. before interest rate hikes. The rub here is that it doesn’t make housing more affordable for the dwindling middle class.
Come mid-spring 2024, when sellers realize the buyers aren’t coming back and they can’t refi because the equity/rates aren’t in their favor, we’ll start to see real capitulation on prices. These sales will become the comps others are forced to base their listings off of. This could get ugly until later in the year when the Fed drops a quarter point (just in time for elections) which will lure the dead cat bounce investers. Don’t be fooled. The rate cuts will be few and far between. Look for talk of a 40 year Freddie/Fannie term. Will probably be limited to “first time home buyers”. Might even be coupled with a newly introduced CBDC but that’s another story.
Should be an interesting next couple of years but rest assured, capitalism will find a way. There’s no way the powers that be will allow for another nationwide crises of confidence in real estate, the cornerstone of the American system, like in 2008.
Make that money, keep living with your roommate, boyfriend/girlfriend, parents or RV and save! The deals will come.
A war/wider conflict induced circular economy would prevent a housing collapse.
My question: how does an appraised value home increase from normal expected to 3x and still be bought after 8 months. Everything I am around was bought by investors, not family homeowners.
It’s November.
Does this only happen with houses?
Condos and houses around my area in the south are starting to go $30-100k cheaper listed than a couple of monthly ago. Again listed price just means asking doesn’t mean it’s worth that much just want someone wants and hope someone steps out for it.
Real estate pricing and trends are local local local.
National media likes to report national real estate averages. While interesting, it has little to do with what’s happening on the ground in your area.
A house is only worth what someone is willing to pay for it…not what Zillow says it is worth.
Not seeing that but not against it.
Oh wow, this $300k house that is now worth $500k is now being listed at $485k. Gee what a screaming deal.
I saw one house in Tennessee reduced price by ~600k to 700k recently. It’s just one of those price cut houses……
prices always drop in the winter and go up in the spring, it’s been like this for a while, aside from the hyperinflation. its like gas, if you buy gas tuesday -thursday its cheaper than fri-monday. convenience based price gouging is EVERYWHERE, most people just dont spot trends or patterns.
How far are they going to drop? I know you don’t have the answer. Nobody really does. But where SHOULD they be? I can tell you having looked at houses and watched the trends closer than I probably needed to the last few years, these inflated prices are unreal and home prices need to drop at least 70% before I would consider them reasonable.
People should be able to get themselves into a home without it either costing them every free penny they have, or having to coax other people to move in with them just so they can all have a place to live.
Manufactured home built 35 years ago on 10,000 sqft property should not cost $500k. In my mind EVER. But you could buy this for under 150k in just 2020.
This market needs to break. Or it’ll force people into buying something they can’t afford and the entire market will completely explode when people stop making those payments because they have a medical problem, a household emergency, or some other unforeseen event that will likely max their credit out because all their money is going into the house.
As a homeowner, I want prices to come down, a healthy recession- better than another 2008 crash- and interest rates to fall.
The other alternative is to continue an inflationary spiral which just impoverishes wage and salary earners.