An Oversupply Is Causing Rents To Fall And Owners Are Selling For Less Than They Bought
A report from the Washington Post. "The long drought of low inventory appears to be continuing to take its oll on the Washington area’s housing market. The number of sales decreased in February for the seventh consecutive month. The housing market has been very soft in the D.C. area for the last four or five months because inventory is so tight,' says Andrew Strauch, vice president of the Bright MLS multiple listing service."
"In Virginia, prices jumped 6.1 percent in Arlington County to $565,000 in February but declined 6.8 percent in Alexandria to $522,500. New listings were down throughout the region with the exception of the District, where the 929 homes on the market represent an increase of 8 percent compared with February 2018, and Falls Church, where the 23 homes on the market represent an increase of 53.3 percent compared with February 2018."
The Baltimore Sun in Maryland. "Home sales in the Baltimore region continued their decline, with February marking the sixth straight month in which sales fell below numbers a year ago. Sales volume last month was down more than 9 percent February 2018, with the number of homes sold down in every county and Baltimore City, according to data provided by MarketStats."
"Carroll County saw a decline of almost 22 percent in the number of closings, the region’s highest, followed by Baltimore City, where closings were down 12 percent. Sellers were getting 94.9 percent of their original asking price in February, down from 95.2 percent a year earlier."
"Prices rose in every area jurisdiction but Howard County, where median prices dropped 8 percent to $382,500 in February. The county still had the highest prices in the region."
From Fox 5 New York. "Spring home-buying season is almost here. Grant Long, senior economist at StreetEasy, expects this to be a busy spring season. A lot of listings will come on the market in March and a really big wave will hit in April and May."
"Grant expects even more listings this year because half the listed homes last year didn't sell. That makes spring of 2019 a buyer's market and puts the power in the buyers' hands, Grants says. Last spring, 70 percent of the homes that sold on StreetEasy went below asking price. Grant says that the median discount was 5.5 percent, which is about $44,000 off the median asking price of $800,000."
From WGCU in Florida. "Miami has the highest household vacancy rate among the nation’s 50 largest metro areas, according to LendingTree. Using data recorded by the Census Bureau, LendingTree calculated that 17 percent of the Miami metro area’s 2.5 million households are vacant."
"Tampa and Orlando — which are also popular destinations for secondary homes — rounded out the top three cities with the highest vacancy rates. Jacksonville, New Orleans, Phoenix and Memphis also finished with among the 10 highest rates."
"Local real estate analyst Peter Zalewksi noted that the housing supply in parts of Miami has begun to loosen. An oversupply of housing units is causing rents to fall in areas like Downtown Miami, and owners are selling their units for less than they bought them for. Zalewski said developers have overbuilt and South Florida real estate is no longer as attractive for secondary homes for foreigners, in part because of the strengthening dollar."
"'Anybody who is looking for a unit and willing to negotiate' can save 'because what’s asked versus what the places actually transact at is dramatically different,' he said."