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Offers 20 Percent And 25 Percent Below Asking Began To Flow In

A report from CNBC on New York. “New York City’s pricey real estate has become a ‘buyers market,’ new data suggests, characterized by lowball offers and a rise in the number of properties staying on the market for longer. The latest figures from Warburg Realty show that among higher-priced homes, New York City is in the throes of a ‘major shift’ that reflects a cooling market, the likes of which hasn’t been seen in almost a decade.”

“‘Offers 20 percent and 25 percent below asking prices began to flow in, a phenomenon last seen in 2009,’ wrote Warburg Realty CEO Frederick W. Peters in the report.”

“Warburg’s report dovetails with separate data showing a definitive cooling in New York’s housing market. The number of homes for sale in the city recently hit a record, according to StreetEasy data, amid fewer sales transactions. Meanwhile, September’s report from real estate firm MNS showed Manhattan apartment rental prices — the most expensive in the city — on the decline.”

“‘While few sellers struck deals at those radically reduced offer prices, they signal a major shift in our marketplace, one which has been building for at least 18 months,’ Peters said. In today’s market, sellers should not expect multiple offers, he added. ‘The majority of deals result from a single offer,’ Peters said — nor should they expect things to move quickly. ‘The days on market average has soared during 2018.'”

The Daily Mail on Florida. “Notorious gangster Al Capone’s Florida mansion has had its price slashed by more than $1million in a bid to find a buyer. Located on a guarded and gated island in Miami, the luxurious waterfront property is where Capone allegedly planned the notorious Saint Valentine’s Day Massacre.”

“The 30,000sq ft waterfront home hit the market in April for $15 million. But now, it’s going for $13.5 million, a $1.5 million decrease from its original asking price.”

“Real estate agent Nelson Gonzalez, EWM Realty, who is marketing the property said the sale was ‘a rare opportunity to own a piece of American history.’ Gonzalez said the home is ‘all ready for the right buyer.'”

This Post Has 25 Comments
  1. ‘Offers 20 percent and 25 percent below asking prices began to flow in, a phenomenon last seen in 2009’

    Blood is in the water.

    ‘they signal a major shift in our marketplace, one which has been building for at least 18 months’

    I’d say 24 months, but this is what you have to look forward to California, Portland, Dallas, Nashville and Seattle. It just gets worser and worser.

          1. It was a politically incorrect joke but thanks for providing the link. I did read the story when it first was posted. It will be interesting to see how the anti-trumpers will roll with the improved NAFTA or usmca. Even the name of the agreement is an improvement since it does not suggest a political union.

    1. I guess my 50% off lowball offers aren’t in line with rest of the 20-25% off offers. Maybe in the near future though 😂. It’s very reassuring to see the search results of “housing market” to all come back with “market bubble, peak market, cooling, slowdown, deceleration, softening”. Not a single search result has anything positive for RE. Almost as if the MSM news has accepted defeat.

      1. I don’t think 50% off is too unreasonable. There are quite a few places in the sub $300k range in my area (southern Utah) that I think deserve about a 40-50% chop to bring it in line with historical fair value.

      2. Homeowners are treating their bubble price gains as if they are locked in and permanent, just as Bitcoin HODLers did late last year before the onset of a 70% haircut.

          1. Sh!tcoin is essentially suspended at $6,500 for the past 3 months or so. I don’t quite understand it. The fall was arrested.

    2. “I’d say 24 months, but this is what you have to look forward to California, Portland, Dallas, Nashville and Seattle.”

      Don’t forget Denver!

    3. Probably reach a bottom around 2023. Five years to get all the way from the top to the bottom! Just like 2006 to 2011. …..or 1990 to 1995.

      A lot of patience will be needed. I’m just stockpiling cash.

  2. “Real estate agent Nelson Gonzalez, EWM Realty, who is marketing the property said the sale was ‘a rare opportunity to own a piece of American history.’ Gonzalez said the home is ‘all ready for the right buyer.’”

    Ebay is littered with “pieces of American history” that are going begging for $9.99. Just sayin’.

    Lol, anyone catch that article about the Uber drivers making half of what they made 3 years ago? This is pretty much the story across all tech websites where regular folks used to make some decent coin. Affiliates getting dumped or their fees slashed, ecommerce sites abusing their sellers, youtube money in the crapper (if you’ve been lucky enough not to be demonetized). The only one that seems to be hanging in there is Air BnB, but watch for it to start cannibalizing its users, too.

    I finally figured out that the “sharing” economy means “sharing” your earnings with the tech parasites by constantly paying more and getting less.

      1. Occupancy in the hospitality industry is at all time high. Once the economy turns and occupancy goes from 80% to 60% , a lot of AirBnB owners w long term debt are going to learn the drawbacks of short term income.

  3. “The Daily Mail on Florida. “Notorious gangster Al Capone’s Florida mansion has had its price slashed by more than $1million in a bid to find a buyer. Located on a guarded and gated island in Miami, the luxurious waterfront property is where Capone allegedly planned the notorious Saint Valentine’s Day Massacre.”

    Stick a fork in Miami, it’s done. At least the high end is. However, there’s still panic buying at the lower end in a number of places around Florida, including my old nabe. My old rental got sold, some flipper bought it, made some cosmetic improvements, put it back on the market in less than a year and voila! Pending sale. Naturally, none of the real issues with the place ever got addressed, lmao. But it’s got granite now! On top of particle board cabinets, geez. Can you say “pancake”?

    But at least the new buyers will always have granite.

  4. “ In today’s market, sellers should not expect multiple offers”

    Lets change this up for you Peter. “ In today’s market, sellers COULD expect multiple offers 20-25% off asking price

  5. Are you concerned that India’s nascent financial panic might spill out into global financial markets? Or is it safe to assume that it is fully contained?
    ————————————-
    India IL&FS
    REUTERS/Shailesh Andrade
    What lies behind?
    TIME BOMB
    Everything you need to know about the massive crisis brewing in India’s financial markets
    By Nupur Anand
    September 25, 2018

    The situation is so grim that it is being compared to the 2008 Lehman Brothers crisis that triggered a global financial meltdown.

    https://qz.com/india/1401032/why-the-ilfs-default-is-spooking-india/

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