Is the realestate bubble bursting?

[2HOTinPHX]

Just came across this article.
Opendoor disciplined by federal regulators for ‘deceptive tactics’ in advertising iBuying services

WRAL TechWire: Opendoor disciplined by federal regulators for ‘deceptive tactics’ in advertising iBuying services.
https://wraltechwire.com/2022/08/02...tive-tactics-in-advertising-ibuying-services/

The technology-enabled iBuyer Opendoor, which offers homeowners an “instant” offer for their property and operates in multiple North Carolina housing markets, may be responsible for paying a $62 million fine and stopping “deceptive tactics,” under a new proposed administrative order from the Federal Trade Commission (FTC).

 

[ExFlyBoy5]

I have mentioned that my DW is in the housing rental management business and oversees several markets spanning many states. They use R/E agents as 1099 contractors to show houses to prospective tenants (and are paid a % of the lease price if they "land" the tenant). Mostly, they do it to supplement their income in sales and will do it very part time. Well, there has been a distinct uptick in agents "looking" for more rentals to be assigned since sales are drying up...some just about begging for them.

They are also testing a program in a couple of regions where they are looking to hire agents as W2 employees and pay them a base salary and performance bonus. Within 48 hours of those jobs being listed, they had over 500 applicants. So...I would say sales is taking a pretty big hit these days.

 

[Out of Steam]

I have mentioned that my DW is in the housing rental management business and oversees several markets spanning many states. They use R/E agents as 1099 contractors to show houses to prospective tenants (and are paid a % of the lease price if they "land" the tenant). Mostly, they do it to supplement their income in sales and will do it very part time. Well, there has been a distinct uptick in agents "looking" for more rentals to be assigned since sales are drying up...some just about begging for them.

A friend who was working as a licensed assistant to a RE agent was let go several months ago. One of those things where it was supposedly for cause, but the reason seemed like an excuse.

 

[Masquernom]

We've been interested in moving to a 55+ community. Looks like prices in Florida are dropping pretty fast. The communities I've been watching have several houses that have dropped prices $50K or more already. Prices in South Carolina don't seem to have taken as much of a hit yet.

 

[Out of Steam]

Nothing's selling on my block.
My house topped at $1.6m. Now it dropped to $1.4m (estimate). San Diego (VHCOL area). Demand is still high even though interest rate hiked and less qualified buyers out there.

Sales have slowed in our neighborhood, but not stopped. Estimates on our house have leveled off.

It's a medium-cost suburban area in Virginia that hasn't boomed in price, basically reflecting the real-world inflation of about 30% since we bought in 2019.

 

[jurgs01]

Nothing's selling on my block.
My house topped at $1.6m. Now it dropped to $1.4m (estimate). San Diego (VHCOL area). Demand is still high even though interest rate hiked and less qualified buyers out there.

We sold our Point Loma house Nov 2021 in that range.

 

[copyright1997reloaded]

It's been a while since I've posted videos of various areas, here is Cape Coral:

 

[copyright1997reloaded]

Phoenix, plus interesting warning on investors putting down small earnest money deposits:

 

[Montecfo]

I am seeing some price drops on homes for sale here in Northern VA. Fairly common now. Not huge, maybe a few percent but a far cry from selling over asking which was common previously.

 

[2HOTinPHX]

Phoenix, plus interesting warning on investors putting down small earnest money deposits:

Thanks for sharing that video. Interesting details on Ibuyers. Sounded like car dealerships to me. Get you to the negotiating table then deploy the shady tactics and thumb screws. Kinda like my original post on this thread. First offer sounded too good to be true and it was. See if they can get your interest then let the games begin. At least that's how it felt to me in my very brief encounter.
The video made a lot of good points. Sounds like things are at least normalizing where houses take more than a weekend to sell. One house I kinda like and have been following has gone into contingent status twice and is back in for sale status. The price has been dropped 45K but still seems a little high. Sure would like to know why the two offers fell through. Something wrong with the house other than market conditions changing?

https://www.redfin.com/AZ/Buckeye/4...ent=link&2010988919=variant&813945303=variant

 

[captain3d]

I think many people find they no longer qualify for the loan or did not realize their monthly payment would be double etc

 

[Another Reader]

Thanks for sharing that video. Interesting details on Ibuyers. Sounded like car dealerships to me. Get you to the negotiating table then deploy the shady tactics and thumb screws. Kinda like my original post on this thread. First offer sounded too good to be true and it was. See if they can get your interest then let the games begin. At least that's how it felt to me in my very brief encounter.
The video made a lot of good points. Sounds like things are at least normalizing where houses take more than a weekend to sell. One house I kinda like and have been following has gone into contingent status twice and is back in for sale status. The price has been dropped 45K but still seems a little high. Sure would like to know why the two offers fell through. Something wrong with the house other than market conditions changing?

https://www.redfin.com/AZ/Buckeye/4...ent=link&2010988919=variant&813945303=variant

The locations far from employment centers are always the first to drop. Ten or eleven years ago, the Tartesso area west of the White Tanks was full of vacant houses that could be bought for pennies on the dollar.

Buckeye is great if you commute to LA occasionally or the grand kids are over there, but it's pretty far from Phoenix if you work there and have to drive in daily. No medical centers that far west either.

 

[2HOTinPHX]

The locations far from employment centers are always the first to drop. Ten or eleven years ago, the Tartesso area west of the White Tanks was full of vacant houses that could be bought for pennies on the dollar.



Buckeye is great if you commute to LA occasionally or the grand kids are over there, but it's pretty far from Phoenix if you work there and have to drive in daily. No medical centers that far west either.

Thanks for the reply. Good info to know.
Yes when visited Verado in Buckeye it was a bit of a drive. Would not want to commute from there for sure. Very nice area with lots of trees... California feel to it but wonder how sustainable it will be with the mega droughts we seem to facing.
As we get older being near medical centers do become an important consideration.

 

[RobbieB]

They fixed the hanging sign on the house across the street. Still not much traffic.

 

[skipro33]

NBC Nightly news tonight did a story on Hoboken Wisconsin how prices are skyrocketing. Seems people still need a place to live regardless of costs, so many are finding ways to trim fat from the budget in order to close on a house.

 

[MarieIG]

Homes seem to be selling more slowly in my zip code. There have been a few price cuts, of overpriced houses. Also, noticed today house on the corner is in foreclosure. ARM perhaps?

 

[ShokWaveRider]

I personally think that interest rates going up are not a completely bad thing. Those who can comfortably afford a home will still buy. Those who are on the brink and scraping the barrel to buy will not, and probably should not be buying anyway. Those who are in the position to buy still will and then simply refinance lower when interest rates subside.

For a long time, folks who cannot really afford homes have been getting in over their heads. While it is not so easy as it used to be to get a mortgage, it is still a lot easier than other countries. The fact they have to take the tax advantage into consideration to afford a home is not a good recipe for living within one's means.

Homes in our locale/development are taking longer to sell but are not really going down. We are in a MCOL area with homes averaging ~$600k + at the low end, Multi Million at the top end, most are fully paid for. So, one has to have a reasonable income to afford even the lowest rung.

A few miles away on the mainland homes can be found a lot cheaper though, but the neighborhood does reflect the prices.

 

[Magus]

SWR -Most people don’t get a tax advantage from home anymore in the US With 92% of folks taking the standard deduction, with salt cap and interest now capped on mortgage amount for deduction. Most people that itemize are folks that donate a lot. Agree with your comments in general though

 

[Out of Steam]

SWR -Most people don’t get a tax advantage from home anymore in the US With 92% of folks taking the standard deduction, with salt cap and interest now capped on mortgage amount for deduction.

I'm not sure that buyers have taken this change into account yet.

 

[GravitySucks]

DD2 bought her 1st house last September. I just looked at the prices in my village - 8 homes listed on Realtor 7 Pending or Contingent, 1 way overpriced. List prices are up around 15-20% but no idea on real offers. ( DD made an offer 20% over asking, cash and was beaten).
Looked in zip code she bought in - 31 homes for sale, 28 Pending or Contingent. Asking prices up slightly.
The rent on her old apartment is now higher than what a 20% down 4% mortgage plus tax would have been, so even if prices drop a bit she's glad she bought.

Rustbelt City, home price increases haven't match inflation for 40 years, so probably not indicative of the National market.

 

[Winemaker]

My neighbor's 4 BR 3BA sold after 2 days on market for asking price; it is 2 doors down from my rental house.

 

[Jeffman52]

We just sold my FIL's house (well closing is tomorrow). We got 10% over asking and it sold in one weekend.


So at least in the area of Ohio that we are in, prices are still up and demand is still high.

 

[2HOTinPHX]

Thanks for sharing that video. Interesting details on Ibuyers. Sounded like car dealerships to me. Get you to the negotiating table then deploy the shady tactics and thumb screws. Kinda like my original post on this thread. First offer sounded too good to be true and it was. See if they can get your interest then let the games begin. At least that's how it felt to me in my very brief encounter.
The video made a lot of good points. Sounds like things are at least normalizing where houses take more than a weekend to sell. One house I kinda like and have been following has gone into contingent status twice and is back in for sale status. The price has been dropped 45K but still seems a little high. Sure would like to know why the two offers fell through. Something wrong with the house other than market conditions changing?

https://www.redfin.com/AZ/Buckeye/4...ent=link&2010988919=variant&813945303=variant

Price dropped by another 30k on the house I linked above. Wonder how long it will take and how low it will go now? Definitely seeing more homes on the market now here in Phoenix.

 

[copyright1997reloaded]

Price dropped by another 30k on the house I linked above. Wonder how long it will take and how low it will go now? Definitely seeing more homes on the market now here in Phoenix.

Thanks for posting this and tracking it. While just one data point, I find it interesting to get examples of what people are seeing/doing. I walk every day and while I am rural I've seen more for sale signs in my various routes lately. They have been selling quickly (pending w/i a few days ofme seeing the sign). I wonder if people are getting a little bit more "reasonable" when they list.

 

[ShokWaveRider]

I think prices have dropped slightly in our neighborhood, although there has not been one for sale in the last 3 months, so it is hard to gauge. Zillow still estimates where they were 4 months ago, but we all know how reliable they are.