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Most Sellers Are Finally Realizing That The Market Has Changed

A report from the Dallas Morning News in Texas. “A familiar sign popping up in front of Dallas-Fort Worth homes reads ‘Price Reduced.’ Almost 17 percent of homes listed for sale with real estate agents in North Texas have had their asking prices slashed at least once, Zillow found. With the number of homes on the market ballooning this spring and sales down a bit, hundreds of D-FW sellers are having to rethink their price tags, real estate agents say.”

“‘Yes, sellers are taking markdowns if their homes do not sell pretty quickly,’ top Dallas-area agent Barry Hoffer of Ebby Halliday said. ‘Most sellers are finally realizing that the market has changed.'”

“With the number of houses on the market jumping this year about 40 percent in Dallas, Collin and Tarrant counties, there are a lot more properties for buyers to pick from. ‘Personally, I think that the market is just returning to normalcy, which to some sellers, who have become spoiled by the news of what their neighbors were able to sell their homes for just a few years, is a little bit of a shock,’ Hoffer said.”

“The shock of home price cuts is even higher in other parts of the country. In Tampa, almost 23 percent of houses up for grabs have gotten markdowns. And in Las Vegas, 21 percent of the listings have had price cuts, according to Zillow. Houston is seeing similar percentages of repricing as Dallas — almost 17 percent of listings in February. Nationwide, around 14 percent of houses on the market are getting a price reboot, Zillow says.”

“‘It’s not uncommon for sellers to over-reach a bit when they first list their house,’ said Scott Schueler, an agent for Dallas’ Keller Williams. ‘But after 60 to 90 days of not selling, they are coming back to reality and lowering their price.'”

From WLOS in North Carolina. “While retirees are moving out of the larger, high-end homes, Marilyn Wright, a real estate agent in Asheville for 10 years said the younger buyers are not moving in, making these homes more difficult to sell. ‘It is a total buyer’s market once you get over a million dollars in Asheville,’ Wright confirmed.”

“Wright said of the 34 homes priced over $2 million in the Asheville market, only 16 sold in that price range during the past year. Those large, high-end homes may sit empty for a while. ‘If you are thinking about selling, now is the time to get those homes prepped and get them on the market,’ Marilyn Wright advised.”

The Kent Reporter in Washington. “Three members of an international drug trafficking organization pleaded guilty Monday in U.S. District Court in Seattle to distributing more than a thousand kilograms (2,200 pounds) of illegal marijuana. The defendants admitted in their plea agreements that they used money from conspirators in the Peoples Republic of China (PRC) to purchase homes in the Puget Sound area, including Kent, that they used for marijuana production, according to a U.S. Department of Justice news release. They set up a shipping company to sell the black market marijuana on the East Coast.”

“Qifeng Li, 41, his wife Xiamin Huang, 38 and his brother Qiwei Li, 45, all face a mandatory minimum five years in prison and up to 40 years in prison when sentenced by U.S. District Judge John C. Coughenour on June 18.”

“‘The entry of organized crime into the marijuana marketplace is of increasing concern in the Western District of Washington,’ said U.S. Attorney Brian T. Moran. ‘This conduct brings crime to our neighborhoods, artificially fuels the housing market, and creates a blight of toxic abandoned grow houses. With this case, the defendants are forfeiting more than a million dollars of equity in properties and more than $350,000 in cash – putting a dent in the organized crime profits.'”

“According to the facts admitted in the plea agreement, between July 2015 and May 2018, the conspirators purchased homes in Burien, Kent, Seattle and Tukwila, which they used exclusively for marijuana production. More than $598,000 was wired to the conspirators from China to fund the purchases.”

“Qifeng Li and Xiamin Huang are U.S. citizens. Qiwei Li is a lawful permanent resident who likely will face deportation following his prison term.”

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This Post Has 16 Comments

  1. ‘With the number of houses on the market jumping this year about 40 percent in Dallas, Collin and Tarrant counties, there are a lot more properties for buyers to pick from. ‘Personally, I think that the market is just returning to normalcy, which to some sellers, who have become spoiled by the news of what their neighbors were able to sell their homes for just a few years, is a little bit of a shock’

    Wa happened to my shortage North Texas?

    1. There was a shortage. Then developers went on a building spree. Now there is no shortage.

      How many articles have you posted about overbuilding in Dallas, especially apartments?

      There’s your answer.

      1. In this day and age, markets do not really build themselves into or out of anything. This is a fallacy that relies on the assumption that most buyers are end users. With the flood of investors that have flocked to real estate, markets have detached from the standard “supply and demand” model and have instead turned into speculative patterns that more closely resemble the stock market than real estate as we once knew it. When the market turns on a dime, as it has over the last 8 months or so, then something other that shelter-buyer demand and general overbuilding is at play.

        1. The laws of supply and demand don’t go away because investors enter the market. If tomorrow 100,000 new houses showed up in Dallas, prices would drop dramatically. Or if 100,000 houses suddenly disappeared, prices would spike.

          I’ve read on this blog umpteen times how Dallas went on an apartment building binge the last 2-3 years. I think it was something like 50K new units were built in just the past few years. Ta-dah!! Shortage eradicated.

    1. I read that article over the weekend. It is basically what has been talked about here for years: too large of houses in the wrong places. It looks like a lot of boomers built their dream house and now they are not able to offload it to someone who values it the way they think it should be valued.

  4. “Qifeng Li and Xiamin Huang are U.S. citizens. Qiwei Li is a lawful permanent resident who likely will face deportation following his prison term.”

    Looks like Qiwei will be executed back “home”…. China dont play around with this sh*t

    1. Looks like Qiwei will be executed back “home”…. China dont play around with this sh*t

      More likely he’ll get a medal for weakening the yankees before China goes to war with us in the South Pacific.

  5. “Qifeng Li and Xiamin Huang are U.S. citizens. Qiwei Li is a lawful permanent resident who likely will face deportation following his prison term.”

    Build Thee wall !!! … Mexico pe$o’$ on Thee way! … Oh, Canada!

    “said U.S. Attorney Brian T. Moran. ‘This conduct brings crime to our neighborhoods, artificially fuels the housing market …”

  6. Life as one of China’s 13 million ‘deadbeats’ means slow trains, special ring tones | South China Morning Post
    https://www.scmp.com/tech/apps-social/article/3003191/life-one-chinas-13-million-deadbeats-means-slow-trains-special

    (snip)

    “For this class of people, who earned the label mostly for shirking their debts, …”

    Deadbeats!

    “… daily life is a series of inflicted indignities – some big, some small – from not being able to rent a place to stay in their own name to being shunned by relatives and business associates.”

    Damned right!

  7. “the younger buyers are not moving in, making these homes more difficult to sell”

    Darn young people! I can’t believe they won’t buy a million dollar starter home to keep this gravy train moving!

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