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This Is A Way Of The Seller And Their Team Coming Back To Reality

A report from the California used house salespeople. “Housing demand in California remained subdued for the ninth consecutive month in January as economic and market uncertainties sent home sales to their lowest level since April 2008, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. January marked the ninth consecutive month of decline and the sixth month in a row that sales were below 400,000.”

“‘While we expected the federal government shutdown during most of January to temporarily interrupt closings because of a delay in loan approvals and income verifications, the impact on January’s home sales was minimal,’ said C.A.R. Chief Economist Leslie Appleton-Young. ‘The decline in sales was more indicative of demand side issues and was broad and across all price categories and regions of the state. Moreover, growing inventory over the past few months has not translated into more sales.'”

“Statewide active listings rose for the 10th consecutive month after nearly three straight years of declines, increasing 27 percent from the previous year. All major regions recorded an increase in active listings, with the Bay Area posting the highest increase at 57 percent, followed by Southern California (29.7 percent), Central Valley (19.5 percent) and the Central Coast (14.5 percent).”

From The Signal in California. “Realtors throughout Santa Clarita helped close escrows during 2018 on 2,247 single-family homes and 988 condominiums, both lower totals compared to the prior year, as rising prices limited the pool of qualified buyers even as those buyers who stayed in the market gained added negotiating leverage, the Southland Regional Association of Realtors reported.”

“2019 will see more of the same, but buyers now have way more negotiating power. While still early in the process with the housing shortage still providing sellers an edge, the market is giving buyers some advantages, especially as houses sit longer on the market, inventory grows slightly and more active listings report price reductions.”

“I agree with Tim Johnson, the association’s chief executive officer, that prices have risen so high, so fast that too many prospective buyers were left behind. ‘We’ve hit a point where there may be downward pressure on prices,’ Johnson said, ‘as the market shifts to the middle in an effort to regain buyers who have been priced out.'”

The Orlando Sentinel in Florida. “Shaquille O’Neal has a deal for you on his massive mansion in the exclusive southwest Orange County community of Isleworth. The NBA legend has cut the asking price of the 31,000-square-foot lakeside estate to just $21.9 million.”

“O’Neal put the property at 9927 Giffin Court for sale in May for $28 million. He also hired a new broker, The Agency Collective, who took over for Premier Sotheby’s International Realty. ‘We dropped it from $28 million to $21.9 million to show a significant decrease and to show that he is a serious seller and not just put it up there for vanity,’ said Chris Franciosa, managing partner for the South Florida-based real estate firm.”

“O’Neal bought the home for $3.95 million in November 1993. The home was expanded several times with luxurious upgrades such as a cigar bar and humidor, a 17-car garage and a two-story great room.”

From Arlington Now in Virginia. “‘Why would I care that a property is reduced by $3,000?’ Here are the reasons why you should keep your eye on these reduced properties, whether their prices ticked down by $3,000 or $500,000.”

“These reductions may only be the beginning. A proactive reduction of $3,000 by the seller may eventually segue into a negotiation that saves you thousands more. A reduction may show the seller’s urgency. Each seller’s situation is unique. They may need to sell by a certain date and a price reduction is small hint to get you enticed (and negotiating even further).”

“It may signify a price correction. Yes, some listings are truly overpriced, and this is a way of the seller and their team coming back to reality.”

“As of February 18, there are 116 detached homes, 10 townhouses and 85 condos for sale throughout Arlington County. In total, 10 homes experienced a price reduction in the past week.”

From Curbed Hamptons in New York. “Built in 2009, an 11,000-square-foot mansion in north-of-the-highway Water Mill that’s been on the market since July of 2017 has just cut $2 million from its asking price.”

“When the 6.5-acre property listed for sale, it was asking $12.6 million, but after a year that price fell down to $9.9 million. Earlier this week, the most recent price cut brought the nine-bedroom, 10-bath estate down to $7.9 million under Saunders real estate agent Hans von Schirach. The house last sold in 2013 for $6 million.”

This Post Has 53 Comments
  1. ‘The decline in sales was more indicative of demand side issues and was broad and across all price categories and regions of the state. Moreover, growing inventory over the past few months has not translated into more sales’

    Thornberg: nooooooooo!

    But how can everything head down at the same time? It’s like a virus spread through the state and watch that shortage disappear!

      1. I much enjoyed a good laugh at this comment…

        Kenneth Young
        Colin’s an idiot. He’s the only person on the planet that wants housing prices to fall. But that is what you get from left-wing nut job. Its because all the “White People” are making the money on real estate and not all the illegal immigrants who are pooring into our state working without paying taxes. Its not fare these poor people can’t afford a place to live. Then go somewhere you can afford it.

        1. But that is what you get from left-wing nut job. Its because all the “White People” are making the money on real estate and not all the illegal immigrants who are pooring into our state working without paying taxes.

          Citizen! Your social credit score just took a serious hit. Do not disparage the supporters of our collectivist overlords! Forward!

          1. “… and some toilets in Beijing use facial recognition science to limit the amount of toilet paper dispensed to each individual.”

            In China you should always carry your own toilet paper. Always. In airports and train stations and western style restaurants they try to take care of the stupid foreigners but there are no guarantees anywhere.

  2. “These reductions may only be the beginning. A proactive reduction of $3,000 by the seller may eventually segue into a negotiation that saves you thousands more.

    Thanks, but I think I’ll just sit tight and wait for the foreclosure sale.

    1. I still don’t understand where this clown was going with this stunt. Three years will pass quickly – not!

      1. Jim Goad at Taki’s Magazine puts it this way:

        “… everyone knows that feral white rednecks roam “ritzy” Chicago neighborhoods that are predominately black and gay in the middle of a polar-vortex night with nooses and bleach in hand and are such huge fans of TV shows about gay black singers that they were immediately able to recognize Smollett, a star of Fox TV’s Empire … “

      1. Ever noticed that most of the dudes you see wearing Superman t-shirts look about as far from being supermen as you can get?

        1. The same can be said about a lot of things: nice cars, houses, etc. There is a certain compensation effect going on.

      2. “Superman” was Shaq’s nickname as a player, and he took it to heart. There is Superman imagery all over the house: in the garage, the home theatre, the circular bed, and at least one of the bathrooms.

        1. I can’t imagine having a bronze bust or paintings of myself scattered about the house. At what point in a person’s success does this self-immortalizing kick-in?

  3. Shoe shine boy moment?

    Las Vegas City-data comment responding to someone who is surprised their house is not selling.
    Quote:
    Originally Posted by M***V***
    Have you tried getting an offer from opendoor or offerpad just to see what they can give you? Plus do the math and see if your time is worth $10K.
    I was told yesterday by a real estate agent who I met while riding in an Uber that with 3 new resort casinos opening coupled with the opening of the Raiders stadium that there likely will not be a downturn and that waiting for a buyer’s market is probably a mistake.

    So I’m on the fence about whether or not to make a move or if I should just continue to save money. Any feedback is welcome.

    Realistically, how much do I need to save? I have never owned.

    Read more: city-data.com/forum/las-vegas/3011953-real-estate-status-7.html#ixzz5g873UzOK

    1. “I was told yesterday by a real estate agent who I met while riding in an Uber”

      Shoe shine boy moment, indeed!

      I see people are STILL insisting that the Raiders coming to town will keep the housing market there going full steam.

      As for all these new Resorts opening, we’ll see how that goes. Remember that the brand new Lucky Dragon was only open for a year before it shut down.

      1. Yeah, that was quick.

        It’s snowing like crazy here. I know it snowed the other day here in Vegas, but we didn’t get it.

      2. I continue to see so many building projects all over Vegas (and Lake Las Vegas) where they are erecting a number of luxury homes ranging from $500,000 – $900,000. I can’t imagine that people are still buying these new homes up in Summerlin and Lake Las Vegas. Anyone have any comments or ideas about how much these values will drop over the course of the next 2-3 years? It seems like Lake Las Vegas, in particular, never really takes off. Summerlin is just getting overcrowded. I keep hearing that same silly notion as well that the Raiders coming to town will somehow magically support unrealistic housing prices. I would imagine that a lot of the construction will slow to a halt across the city in a matter of months.

      1. It was really coming down. Big flakes, very wet. It’s disappearing now. I hate the sight of the stuff after dealing with it by the foot in NY. The cats were fascinated. IDK if it’s me but it seems winter here has been colder than usual, have to look up.

    1. webbed feet, cat’s eyes and gills

      I think I’d rather let out a few feet of anchor rode if it comes to that.

  4. “Moreover, growing inventory over the past few months has not translated into more sales.”

    Very easily explained:
    1) The buyers refuse or are unwilling to pay the asking prices.
    2) The resulting drop in purchases means more homes piling into inventory.
    3) Inventory can continue to build up until prices are lowered to clear it.

    1. That is a beautiful home and neighborhood. The school district is probably impacting the sale price. The same unit in Del Mar or Carmel Valley would easily get $1.0M+.

      I’m praying that San Diego real estate takes a dive because I desperately would love to retire there but prices are about 25% too high for us on just one income. I would actually buy this unit if the price goes down to $650K-$700K.

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