What People Thought They Could Get For Their Home In January Or February Is Not The Same Today – And It Is Usually Less
A report from Westword in Colorado. "The real estate scene in Denver hasn't fully transitioned into a buyer's market. But it's shifting in that direction, as indicated by how many more concessions metro-area sellers are willing to grant now as compared to the recent past. That's the theory espoused by Fresco Real Estate's Veronica Collin, who's proven to be an adept prognosticator when it comes to home sales in and around the Mile High City."
"'Houses on busy streets or with strange layouts or poor locations are sitting for a while now,' she points out. 'And we're seeing price reductions amplified when agents aren't pricing properties correctly. When flippers price their properties themselves, you'll often see them go too high, and as a result, you'll see them sitting for much longer and prices eventually coming down by $30,000, $40,000, $50,000.'"
"Such reductions aren't the norm right now, Collin acknowledges, 'but we're seeing a lot of houses selling for under the asking price — maybe not drastically under, but it does provide some relief to buyers.'"
The Mail Tribune in Oregon. "Median home sales prices dropped from $328,000 to $285,000 in Talent from the second quarter of 2018 to the second quarter of 2019. Phoenix also saw a drop from $322,775 to $286,500, statistics show. West Medford, the least expensive zone, dipped from $227,000 to $224,250, statistics show. Central Point, Gold Hill and Rogue River also saw prices go down."
"Buyers and sellers should adjust their strategies, according to Colin Mullane, spokesman for the Rogue Valley Association of Realtors. After years of price growth that created a sellers market, the pendulum is starting to swing toward a more stable market, he said. Second quarter statistics show the inventory of houses for sale climbed 17.1% in Jackson County and sales fell 4.9% compared to the second quarter of 2018."
"'We’ve seen a lot of trends that are mirroring what’s happening around the country,' he said."
The Milwaukee Biz Times in Wisconsin. "Home sales in the metropolitan Milwaukee area fell 5.8% last month relative to June 2018, an extension of a slowing market the region has experienced over the last two months, according to the Greater Milwaukee Association of Realtors. June sales fell the greatest in Kenosha County, which recorded a 19.1% decrease relative to the same month in 2018. Following that was Milwaukee County, with a decrease of 8.2%."
"However, GMAR added that even with home sales slowing, there are no signs indicating a collapse of the housing market the U.S. saw just over a decade ago. 'This is not 2008,' GMAR notes in its report. 'There are no reports, or anecdotal stories, of unworthy buyers getting loans or crooked lenders handing out cash that precipitated the 2008 crash. All indications point to a soft landing.'"
From The Real Deal on Florida. "Verzasca Group’s Le Jardin Residences boutique condo project in Bay Harbor Islands is nearly complete with the majority of units presold. Yet, in an unusual move, the project filed for Chapter 11 bankruptcy reorganization in a U.S. Bankruptcy Court last week. By reorganizing, the project’s developer hopes to close on the units as part of a complicated legal maneuver."
"The development group’s bankruptcy filing is tied to a lawsuit filed in Miami-Dade Circuit Court in 2017 alleging that the group owes money on an EB-5 loan. EB-5 is a federal program that allows foreign investors the opportunity to receive a green card in exchange for an investment of at least $500,000 in an American enterprise that creates at least 10 jobs."
From Fauquier Now in Virginia. "A 515-acre farm near Warrenton sold last week for $2.6 million. The property went on the market last year with an asking price of $4.6 million. The price dropped twice and most recently stood at $3.8 million."
"Also last week, J.P. Morgan Chase Bank took possession of Hesperides, a 179-acre estate just north of Warrenton. Hesperides went on the real estate market two years ago with an asking price of $4.1 million. The bank took the property back in lieu of a $2.2-million debt."
The Long Beach Business Journal in California. "Despite good job numbers, a robust stock market and general good economic news, anyone who is in the real estate industry or is trying to sell their home in today’s market can feel that things just aren’t what they were last year."
"As the first six months of this year have shown, the market is softer and price expectations are having to be adjusted all over the board. What people thought they could get for their home in January or February is not the same today – and it is usually less."
"According to Kate Seabaugh of the Burns Company, price appreciation has slowed across every major housing market. Basically, the urgency has gone out of the housing market, and we have entered a period where buyers are cautious and will walk from deals unless they get what they want."
"The largest deceleration was in the San Jose, California region, where a year ago prices were up 20%. They are down 6% this year from last, a deceleration of 26%. 'Last year, San Jose was frenzied with less than one month of supply and very strong job growth,' noted Seabaugh in her market study. 'Builders were selling homes faster than they could build them. In the second half of 2018, the San Jose market slowed substantially due to affordability issues, but conditions have stabilized this year."
"In other California cities the deceleration rate is less, but still significant: San Francisco is down 15%; Los Angeles is down 7%, San Diego and Orange County are down 6% and Riverside-San Bernardino is down 5%. Nationally, along with the California markets, Seattle and Las Vegas have been hit with price decelerations."