Start of the Real Estate slump?

[Scrapr]

I'm still getting alerts from Redfin on potential home after I had it turned on for my purchase/sell recently. One popped up on my purchase street with a note I have not seen for a very long time. Short Sale.

Looks like they have been in 4.5 years. Listing plus Realtor fee about equals what they bought for. They will pull a little equity out but it won't be much. Depending I guess on the repair addendum

edit: Since it's a short sale they will be pulling zero equity out.

 

[street]

My son just bought a home last month for him and his wife to be. They both had homes so they each put their home up for sale. My sons home was on the market two days and the first to look at it make an offer and his is in the processes of closing in an few weeks. He bought before he put his up for sale and I wasn't sure that was a good thing to do. In his case he got lucky for the first person to look at it took it.

Both homes listed in low to mid 300K range.

His future wife's home has had many look but no takers yet. It is a very beautiful home in a mature developed neighborhood. I would of thought hers would of sold before my son's home.
It kind of would be scary right now to try to sell a home IMO. There is a lot of homes for sale but they say home are selling and real estate business has been very good. Time will tell and I do hope hers sells sooner then later.

 

[MrsHaloFIRE]

We were gone a month. Came home and a house on our (short, very short) cul de sac went on the market and sold while we were gone. Other houses in same neighborhood languished. WIll see what happened when they post the sold price.

 

[Bamaman]

My granddaughter's looking at starter homes in NE Memphis. Any decent looking home under $200K there is going to be in a bidding war 1-2 days after listing. I have never seen so many homes come on the market and be sold so fast. I honestly don't know how mortgage originators and title companies can possibly handle all the pending paperwork.

We see when the homes were last sold and the price. As always, the real estate company is the one making all the profit on the sales.

There are no entry level homes being built. Construction in new neighborhoods start in the low $300's--and you're not getting that much home for your money even.

 

[CaliKid]

The market is still on fire in inland NorCal. I assume not so much down in 'Frisco though.

 

[chassis]

Please define "real estate".

Vacant land in the boonies on an unpaved road without water/sewer/electric, 2+ hours from a regional airport? Not much going on.

Retail space in traditional strip mall/big box areas? Tough times.

Multi-story office space in suburban or urban areas? Tough times.

Multi-million dollar residential property with unusual features? Not too much happening.

Industrial/warehouse projects? Doing pretty well.

Most other residential? Doing pretty well.

Strictly in response to the title of the thread: no.

 

[street]

^ now is the time to buy what no one wants if you can get a good price. I always like to buy bare land, if it be a lot or hundreds of acres if price was right I was interested.

 

[W2R]

Wow, quite the opposite here in my suburban New Orleans neighborhood! Real estate is really on fire here and has been for several years. Not that we want to move, but my goodness, I am so glad that I bought five years ago instead of today. The median home in my neighborhood costs twice what I paid, which boggles my mind. I paid the asking price since things were ramping up even then. The cheapest home listed right now in our entire neighborhood is 165% of what I paid. And almost all homes listed here are "pending".

Even in our very middle class neighborhood (with mostly 1960's ranch homes occupied by elderly people, on tiny lots), we are starting to see some approaching a million dollars. Not there quite yet, but soon. My goodness! This is "flyover country", not California or Manhattan!

Reading the real estate listings has become endless entertainment for us, although we have no plans to ever move again. We read them to each other and laugh incredulously.

 

[HadEnuff]

Up here in The Finger Lakes, evidently, it's a strong seller's market. I'm hearing all kinds of reasons for it, the most popular being that Big Money from the cities is moving in....whatever...I have no idea...but there isn't much available.

 

[Dtail]

Definitely a sellers market where I live. Any further moves down the road will likely be downsizing.

 

[Souschef]

Up here in The Finger Lakes, evidently, it's a strong seller's market. I'm hearing all kinds of reasons for it, the most popular being that Big Money from the cities is moving in....whatever...I have no idea...but there isn't much available.

With more people working from home, there is no incentive to stay in the Big Apple

 

[grasshopper]

Please define "real estate".

Vacant land in the boonies on an unpaved road without water/sewer/electric, 2+ hours from a regional airport? Not much going on.

In our part of the boonies this past summer has been hotter than ever before. I hear from the sellers that folks can't wait to get out of the cities. Raw land and existing homes both. I for one hope that they all stay away from our piece of paradise.

 

[TrvlBug]

It's a sellers market here in Silicon Valley. Not much inventory and when it hits the market, it's gone, unless it's overpriced of course. The game here though is to underprice and get multiple offers.

 

[RobbieB]

No slump here in the Central Valley.

 

[jollystomper]

In the last couple of months we started receiving mailings from local outfits offering to buy our home for cash (HA!).

In the last 2 weeks we have gotten 3 calls from realtors checking if we were interested in selling our home and promising a fast, profitable sale due to the market.

The price on Zillow is up to IMHO a crazy amount

The last time all of these things happened in our area was 2007...

 

[MRG]

Sellers market here.

 

[MRG]

In the last couple of months we started receiving mailings from local outfits offering to buy our home for cash (HA!).

In the last 2 weeks we have gotten 3 calls from realtors checking if we were interested in selling our home and promising a fast, profitable sale due to the market.

The price on Zillow is up to IMHO a crazy amount

The last time all of these things happened in our area was 2007...

Are those zestimates anything close to reality? They're teasing me.

 

[jollystomper]

Are those zestimates anything close to reality? They're teasing me.

It depends, I guess, on the market. When my siblings and I sold our parents home a couple of years ago, it was a hot market in that are for that type of home, and it sold for about 10% higher than the Zillow estimate, which is about what the initial listing was.

For our home, I would not pay what Zillow says it is now worth. But I know nothing about real estate.

 

[street]

Three stall garages are a game changer in a tie breaker for home sales.

 

[stephenson]

Florida panhandle - crazy market in our small city. We have rentals - that neighborhood has gone from 140s to about 200 over the last two years. Usually 1-3 days now if market priced. Another rental neighborhood from 250s to 330s in the same time with a week on the market.

Lower priced houses are going for over asking.

Our neighborhood a few days to a week or so if fairly priced.

 

[Scrapr]

Please define "real estate".

Vacant land in the boonies on an unpaved road without water/sewer/electric, 2+ hours from a regional airport? Not much going on.

Retail space in traditional strip mall/big box areas? Tough times.

Multi-story office space in suburban or urban areas? Tough times.

Multi-million dollar residential property with unusual features? Not too much happening.

Industrial/warehouse projects? Doing pretty well.

Most other residential? Doing pretty well.

Strictly in response to the title of the thread: no.

I define it in the form that most readers here have....a SFH in a middle class neighborhood. The 2 housing markets I'm in are on fire. I bought then sold. The home I bought was pending in about 36 hours. The home I'm selling in Bend had 3 offers to buy before anyone saw it (just pretty pictures)

But that is not the point of the post. Covid has put a lot of jobs on the bench. There has been talk of renters not being able to pay rent after the stimulus money runs out. And if your job is furloughed & no money comes in then maybe you sell your home.

I just have not seen a "short sale" on a listing in years & years. For someone to be underwater on a home after 4 years is shocking to me. Maybe this next stimulus money pushes the can down the road a bit & home owners can stay in their home. If jobs don't come back then the housing market will suffer

 

[street]

Why the boom in home sales Low interest, cheap money must be a part of the reason?

 

[Koolau]

HI population has been decreasing slightly for a few years now. Even in light of that and with Covid rearing its ugly 2020 rear, prices seem to have stabilized. Inventory is moving more slowly however which often portends retreating prices. I guess we'll see. It doesn't really affect us much. Property taxes just might stabilize or maybe even drop some day - Naaaaahhhh! But they are already quite low, considering. No desire to sell, so we'll just live our lives and wait it out. YMMV

 

[RenoJay]

I think locational context would be valuable from these posts. From what I read, real estate is once again local. Big cities seem to be losing residents (downward price pressure) while certain suburbs and lower tax states are gaining those same folks, especially now that many have discovered working from home. So it doesn’t shock me that one person is seeing short sales while another is seeing homes fly off the shelf.

 

[copyright1997reloaded]

With more people working from home, there is no incentive to stay in the Big Apple

Big exodus from NYC, perhaps even bigger than after 9/11. [After 9/11, there were plenty of people buying quite far from NYC, but mostly along train corridors and also limited due to the fact that their jobs required them to be in the city. I know this because I lived upstate but was working in NYC. This time around, technology has improved enough to (perhaps) make this a more permanent thing.)

Side note: I started "working from home" in the mid 90's, now it is trendy.