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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.”

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This Post Has 36 Comments

  1. Eeee-bola Howard County!

    ‘Howard County median prices dropped 8 percent to $382,500 in February. The county still had the highest prices in the region’

    And the most expensive shacks fell first and farthest. Where have we seen that before? Everywhere! More like a bubble popping than a correction.

    1. Ebollaaaaa to my old hometown!!!! I used to work near there close to rt 32 about 10 miles from NSA 🙂

  2. ‘The housing market has been very soft in the D.C. area for the last four or five months because inventory is so tight’

    The ebola already hit DC Andy. The Post is one of the most deceptive cheerleaders in the REIC.

    1. I wouldnt say it’s full on ebola yet in DC. I saw prices under a million mostly flat in 2018. Unlike Seattle and etc inventory isn’t bloating. Im talking about the actual city proper here. I think the Amazon hype is helping DC tread water for now. I think we will get a better picture in April.

      1. Ebola is already baked in with a couple decades of subprime mortgages saturating the DC area and add in some fraud here and defective appraisals there.

        Would you accept a price established by the entity lending you the money or would you hire your own estimator to arrive at a price?

      3. I’m hoping for, and expecting, a downturn myself. I’m just saying I haven’t seen it yet in DC proper. I’ve still got supposedly educated friends still throwing down $750K for a hundred year old two bed one bath. They say it’s hard to find a house. Just treat this as another data point.

    2. The Washington Post’s slogan is “Democracy dies in the dark.”

      How ironic, considering how this globalist oligarch (Bezos-owned) propaganda media flagship ruthlessly suppresses any news that doesn’t fit “The Narrative.” And how the Venezuelan socialism so beloved of the Post has plunged its citizens into literal darkness.

      1. Download Firefox add-on Dissenter by Gab. It gives every news article an independently hosted comments section. The NYT or WaPo are going to have their ears forcibly unplugged.

        1. That’s awesome. Almost all of the Oligopoly media outlets have shut off the reader comment sections after too many red-pilled truth-tellers started showing up to dispute The Narrative.

        2. The NYT or WaPo are going to have their ears forcibly unplugged.

          Nice! Thanks for the recommendation. Gab is a popular platform for independent/citizen journalists who’ve had problems with censorship on mainstream platforms (e.g., YouTube).

  4. It’s about time for renters to get a break. I honestly thought rents would fall much sooner, at least up until the onset of the Fed’s QE3 short squeeze on the entire U.S. market around 2013.

    The short squeeze is currently unraveling.

    1. It’s about time for renters to get a break

      Our lease is up for renewal. Landlords aren’t looking to lower the rate. Hoping rent declines make it this way sometime soon!

      1. Drumminj, I’ve been here a long time and remember your stories from all that time and I’m so sorry you’ve been through so much. Just a tiny recommendation since it seems like you might have to move again: watch the Marie kondo show on Netflix. It might help make future moves easier.

    1. All’s well, Mega.Bank$ are $afe & $olid! … (It’$ Just the $ubprime NON.Bank$ & $ubprime loan borrower$ that might bee a $source of the “Coming.$oon!” financial catastrophe$)

      Regulator$ are monitoring the $1 trillion$ leveraged loan market for potential $ystemic risk$

      “It’s great that the Financial $tability Board and the Ba$el Committee on Banking $upervision have focused so much on the bank$, because they were at the epicenter of the cri$is. But what about the regulation and the $upervision of the nonbank$?” she said.

      Because nonbank$ come in all $hapes and $izes, including pension fund$, private-equity firm$, family office$, hedge fund$ and fixed-income investment fund$, there is no $ingle centralized regulator that has the scope to watch their activities or the power to conduct on-$ite exam$, said Rodriguez.

      Here’s why the Fed and global regulator$ are ringing the alarm over leveraged loan$ and CLO$

      By Sunny Oh
      Published: Mar 12, 2019

      Got munchies?

    2. Keep HODling 4.2 Trillion$ comes with NO penalty to the FED & Indemnification$ for the Deci$ion maker$!

      Jeffrey Gundlach says the theory of unlimited deficit spending is a ‘crackpot idea’

      The founder and CEO of Doubleline Capital said the increasingly economic popular theory backed by progressives is a “crackpot idea” and ‘complete nonsense.”

      The notion behind Modern Monetary Theory is that as long as the Federal Reserve can keep interest rates low without sparking inflation, the national debt and budget deficit won’t be an issue.I

      Yun Li | Published 3/12 /2019 CNBC

      The so-called bond king Jeffrey Gundlach is not shy when it come to rebuking the increasingly popular theory backed by progressives — the Modern Monetary Theory.

      “MMT is a crackpot idea… sounds good for a first grader,” the founder and chief executive officer of Doubleline Capital said in an investor webcast on Tuesday. He said the theory is “complete nonsense” being used to justify a socialist program

      Gundlach added that the “ridiculous” MMT is a way of monetizing and could lead to “a significant boycott of long-term bonds”

      Fed Chairman Jerome Powell recently said the economic theory is unworkable.

      “The idea that deficit$ don’t matter for countrie$ that can borrow in their own currency I think is just wrong,” Powell said during congressional testimony in the Senate.

  9. Zillow predicts Meadow Woods home values will rise 7.9% next year, compared to a 9.4% increase for Orlando as a whole.

    every house listed has a price chop
    up 9% next year????????????

    1. Watch how Zestimates and price forecasts rise while properties are for sale. Watch how soon they both drop after the house is sold. Cycle repeats the next time the properties are put up for sale.

      At what point is Zillow going to be considered to have a conflict of interest, given that they themselves are going to be buying and selling homes now?

  10. CA. the math now makes no sense with the $10k SALT cap. Your $38k a yr mortgage deduction is now $10k. Ouch! All that and most cities have awful public schools. Not sure why anyone not within 20 miles of the ocean would stay. And that high speed train money pit.

    1. You’re confusing SALT with MID deductions. Try again.

      I’ll give you a hint. One involves taxes, the other involves mortgages.

  16. What kind of economic reality do these pinheads inhabit in which lack of inventory can cause housing prices to go both up *and* down depending on the more convenient narrative?

    ‘‘The housing market has been very soft in the D.C. area for the last four or five months because inventory is so tight’

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