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How Many Had Slashed Their Asking Price? Almost All Of Them, Actually

A report from the Review Journal in Nevada. “Las Vegas house prices last month rose at their slowest pace in seven years — another sign of the market’s continued downshift, a new report shows. Amber Diskin, an agent with iProperties International, said a lot of sellers were overpricing their homes, which helped fuel the rise in available listings.”

“Amid the pullback, more sellers have been cutting their prices. Asked how many of her clients had slashed their asking price in the past few months, Diskin said: ‘Almost all of them, actually.'”

This Post Has 55 Comments
  1. To put the speed in context: in the spring of 2018, Seattle was the hottest shack market in the US. Then it went into crater. Immediately the REIC pronounced Las Vegas as the hottest. And here we are in just about a years time, both swirling the bowl.

  2. Hire a Swedish firm and it gets done…….Kosciuszko Bridge to Fully Open in September, Project to be Completed Four Years Ahead of Schedule

    On May 23, 2014, a $554.77 million design-build contract was awarded to a team consisting of Skanska, which will be managing partner; Ecco III of Yonkers; Kiewit Corporation of Nebraska; and HNTB of Kansas as the lead design firm.[22][23] It is the largest single contract ever awarded by the New York State Department of Transportation.

    https://sunnysidepost.com/kosciuszko-bridge-to-fully-open-in-september-project-to-be-completed-four-years-ahead-of-schedule

    1. If going to a business meeting in Sweden you damn well better be on time or preferably early. Although the law is lax, smoking pot is broadly frowned upon dude. Many are perfectionist and kind of anal about the details. No Bernie our current culture is not well suited to adopt the Scandinavian model.

  3. ‘Virginia-based Live Well Financial announced Friday that it was ceasing originations “due to unexpected circumstances.” The forward and reverse mortgage lender and servicer also filed a notice with the Virginia Employment Commission informing the state of its closing and subsequent layoff of 103 employees in Richmond, Virginia.’

    “Due to sudden and unexpected developments in the markets for certain financial assets the company uses as collateral for certain credit facilities that provide this liquidity, these lenders have reduced significantly the amount of liquidity they make available to the company,” said Foster.’

    “This reduction in credit availability combined with challenging conditions in the markets for mortgage loans, which were conditions outside of the company’s control, along with related regulatory issues, have resulted in the company having insufficient available cash to continue operations,” Foster continued.’

    ‘While the letter said that employees working outside of Live Well’s Virginia headquarters would be also affected, it did not provide specifics on layoffs in other states. Live Well has offices in San Diego and Lansing, Michigan.’

    ‘The reverse mortgage industry has seen volume plummet in the last year thanks for new regulations, which no doubt had an impact on Live Well’s bottom line.’

    https://www.housingwire.com/articles/48978-live-well-financial-laying-off-103-employees-blames-closure-on-market-regulatory-issues

    1. One Day With the Squad That Removes Needles and Feces From Downtown Portland Streets

      ‘Wearing a bright reflective vest, hiking boots and black cargo shorts, Shipley appears moments after the officers, hauling a trash can on wheels. “People get really upset sometimes, being woke up at 7 o’clock in the morning,” she says. “They don’t want to go nowhere. Which I get. I understand.”

      ‘But the city has yet to turn a corner in the highest-profile symptom of the homelessness crisis: The streets of downtown are full of people talking to themselves, high or mentally ill, and camped out with their few possessions. In lieu of long-term solutions, the city and its largest businesses rely on temporary, cosmetic fixes like sending a broom-and-bucket brigade every morning to scour away the evidence of a broken social contract.’

      ‘In downtown, according to statistics compiled by the Clean and Safe District, the number of hypodermic needles picked up off the streets grew from 2,817 in 2012 to 38,394 in 2018. “Sometimes I think it’s getting better, sometimes I feel like it’s getting worse,” says Jay McIntyre, business director for the Clean Start program at the nonprofit Central City Concern.’

      https://www.wweek.com/news/city/2019/05/08/one-day-with-the-squad-that-removes-needles-and-feces-from-downtown-portland-streets/

        1. ‘When drivers for the ride-share apps Uber, Lyft and Juno walk off the job in cities across the country on Wednesday, demanding better pay and working conditions, they’ll have the support of many progressive elected officials.’

          ‘But few, if any, will be demonstrating as much solidarity as Virginia Del. Lee Carter (D). Carter, a self-described democratic socialist from the northern Virginia suburb of Manassas, drives part-time for Lyft and announced on Twitter that he will be participating in the strike. “There are people doing this full time that are driving in some cases, 50, 60, 70 hours a week, and in some cases, they’re just barely getting by,” he said.’

          ‘Unlike ordinary companies with full-time employees, Uber and Lyft classify their drivers as independent contractors, freeing the company of the obligation to deduct payroll taxes for Social Security or guarantee a certain level of pay.’

          ‘Research that accounts for the financial risks borne by ride-share drivers in this arrangement has found that their hourly pay often falls short of the minimum wage. When factoring in fees drivers pay the company, vehicle-related expenses and out-of-pocket spending on payroll taxes and health care benefits, the average hourly wage of an Uber driver was $9.41, according to a May 2018 study conducted by the liberal Economic Policy Institute.’

          ‘The drivers’ independent status also leaves them vulnerable to sudden changes in market conditions or payment formulas dictated by corporate management. Average pay for ride-share and food delivery app drivers declined 53 percent from 2013 to 2017, according to a J.P. Morgan analysis.’

          ‘Carter expressed fear that ride-share companies’ entry into the stock market ― Lyft went public in March ― is likely to be accompanied by additional reductions in drivers’ shares of passenger fees.’

          https://www.huffpost.com/

          1. That happened to me when Godaddy went public, used to get special deals just before renewal time on domain names, hosting etc. then after IPO, zero you had to join some type of VIP club to get deals like 10 years for $99.

      1. ‘In downtown, according to statistics compiled by the Clean and Safe District, the number of hypodermic needles picked up off the streets grew from 2,817 in 2012 to 38,394 in 2018. “Sometimes I think it’s getting better, sometimes I feel like it’s getting worse,” says Jay McIntyre, business director for the Clean Start program at the nonprofit Central City Concern.’

        2,817 -> 38,394. Jay…. if these numbers don’t mean it is getting worse, what kind of sign do you need?

        1. It probably is getting worse. But having said that, sometimes an uptick in incidences is not necessarily evidence that a problem is getting worse, just that the data is more accurately being captured and tracked. The worst thing for something to happen, like crime, and it simply to go unaccounted for. The stats might say the crime is happening, but the stats are wrong.

  4. Sorry to rain on your McMansion bust parade, but thus far prices for McShacks here in Vegas have proven to be very “sticky”.

    Don’t take my word for it; see for yourself here:

    https://www.realtor.com/realestateandhomes-search/Clark-County_NV/type-single-family-home/price-na-175000/pnd-hide/sby-8

    …and here:

    https://www.zillow.com/homes/for_sale/Clark-County-NV/fsba,fsbo_lt/house_type/445_rid/50000-175000_price/198-695_mp/37.153749,-113.093262,34.689686,-116.845093_rect/7_zm/0_mmm/

    I defy anyone to find a habitable McHovel for anywhere NEAR a reasonable price. In fact, the “Review Journal” article cited in the original post above shows an INCREASE in McPrices month-over-month, and an AVERAGE price of THREE-HUNDRED THOUSAND DOLLARS!!!

    Furthermore, as a student of our Ponzi Monetary System, I have learned over the past forty years (and especially the previous ten) that there is NO LIMITS to what the Alpha Thug politicians and Pigmen central banks will do in order to keep McShack prices from completely collapsing.

    Think about it: Uncle Thug already owns ALL of the GSEs (Fannie, Freddie, FHLBs, Ginnie) outright. Also, the Fedge (so named because the Fed is the world’s largest hedge fund) currently holds $1.6 trillion or so of McMBS and will be instructed by Uncle to snap up even MORE of this toxic paper, as outlined below.

    Now, as the McBust continues to gain speed, look for the following to be implemented:

    1. Zero-down, zero-interest McLoans, with up to 100-year duration

    2. Fannie/Freddie/FHLBs/Ginnie all issuing world-record amounts of McMBS

    3. The Fedge snapping up many more of said McPaper

    All designed to keep McPrices from falling much further than 25% nationwide.

    Mark my words: this time really IS different. Especially since current President Trump is himself a real estate magnate, and also because so much of the Ponzi economy is tied to McHouse sales. It won’t be long before the above-mentioned programs will be rolled out, and the sheeple will lap them up because they will be allowed to slide into that McAmerican Dream for nothing down, and a monthly payment of, say $800.00.

      1. Family member listed a house in South Fl..a mile from beach for 275,000.Went under contract in 6 days. Checked public records, it sold for 235,000.Another friend using in Arizona said his appraisal came in 12,000 less. This is just in the last two weeks.

      2. “..And we heard all this “they” won’t let prices fall back in 2005.”

        Yep, and IIRC, Las Vegas median house price dropped 50% during the last bust.

    1. Since most of the Democrats running for office believe in MMT it is hard to see how you get a drop in nominal prices. Real prices perhaps but not nominal. It will be a great time to own a fixed rate mortgage if MMT is adopted. You cannot create money without consequences. The fed expanding its balance sheet and buying government bonds and mortgages under Obama was just the camel’s nose under the tent. Zimbabwe under Mugabe will be our future.

      1. ‘it is hard to see how you get a drop in nominal prices’

        ‘despite the drop in prices, there are more dwellings on the market than at any time since 2012’

        ‘Ola Zaryzycki, 63, saw her house sell for $300,000 less than it had been valued at only a year earlier. ‘It was heartbreaking, absolutely heartbreaking,’ she said.’

        http://housingbubble.blog/?p=1637

        I have to put up with this crap despite posting crash, crater and slash 7 days a week. Did you read about Seattle yesterday? That’s been going on for almost a year. Hard to see if you have your head up your ass.

        1. The point was what would happen if someone believing in MMT was elected president. I do not doubt that the prices are falling in the bubble cities particularly in high tax states. But the question is what happens if a MMT disciple gets elected

          1. what happens if a MMT disciple gets elected

            Just another word for pillaging type socialism.

          2. We have already had a dose of MMT, but it has been done by the Fed under Bernanke/Yellen. The new crop of MMT adherents want it to be directed by congress.

          3. I liked the way Dubya performed MMT, e.g., send everyone a check to spend on main street, pay down debt or add to your savings account.

        2. AlbqDan lives in his own head, oblivious to the real world. He has never acknowledged all of his incorrect “predictions” or “prognostications” or whatever you want to call them. He is a loanowner so his own financial interests are aligned with house prices not falling.

      2. Since most of the Democrats running for office believe in MMT it is hard to see how you get a drop in nominal prices.

        I do expect them to eventually destroy the dollar since they have shown they they are willing to. But that day isn’t today. In the meantime prices are dropping today. So there will be an ideal time to get out of cash and into assets you can touch regardless of price. But I don’t know when that will be. I’m betting it’s not today.

    2. I can’t tell if your serious or not with your post but let’s say you are and you use two to f the biggest RE shill websites you can find: Zildo and Realtor.com which is a NAR website. So your basically using two very biased sources to make a pretty weak statement. I will agree with your statement about our current president and the influence he has on propping up the markets, more specifically RE because if that falls in his term it will show very poorly on him and he has quite the ego to maintain.

    3. It ain’t what they’re asking, it’s what they’re getting that matters. The flood of Chinese, Californians and assorted other Greater Fools has slowed to a trickle.

      Anybody who does their due diligence and pokes around Vegas before pulling the trigger will realize what an absolute hellhole it is. Maintenance is a real bear due to harsh desert weather, hard water, and trashy tenants.

      The smart money is fleeing like rats, leaving a whole lot of illegals, cash-strapped seniors, ex-cons, professional criminals, and the 550 FICO crowd.

      1. “It ain’t what they’re asking, it’s what they’re getting that matters.”

        Exactly. Asking prices mean nothing, essentially.

        1. Asking prices reveal seller expectations, which in turn reflects the supply side of the market. However, the fact that only homes where the seller slashed their prices suggests the bottom has dropped out of the demand side of the market. A lower equilibrium market price is theresult, and sellers who refuse to slash won’t be able to sell.

    4. ‘…but thus far prices for McShacks here in Vegas have proven to be very “sticky”.’

      Could one say they have reached a permanently-high plateau?

  5. Signed a lease on a nicer place. So the good news is that the pressure to buy will be off for at least a year or two in my house. Bad news is rent is expensive right now. 3k/mo for a nice 4br in a very good location in Folsom. But the 3br “luxury” apartment we were waiting for to finish construction has already risen to 3250. I’m highly confident that the next couple of years will be a good time to not own. Time will tell.

    1. I would like to understand how and why rents skyrocketed in every single market in the US when they did not do so last bubble. My own personal “theory,” if you will, is that the 25 million+ zombie houses taken out of inventory, in conjunction with mass speculation (demand) by Wall St. and other rent-seekers for the remaining housing stock, and buoyed by a larger renter class (given historically low ownership levels), led to crushing rent increases.

      1. My personal theory is that the people who have paid attention over the last 10+ years have learned to buy the dip as they’ve been trained by the Fed to do. And you can’t buy the dip if you don’t keep your powder dry. So the good news is they are trying to be smart. The bad news is that they will 100% expect the next Fed intervention to work just as well as it did last time which may not be so smart.

      2. “I would like to understand how and why rents skyrocketed in every single market in the US…”

        I think it’s both of the issues you named plus immigration. We’re letting in around 1 million legal immigrants every year, and probably another 3 million illegals, many of whom enjoy taxpayer-assisted living benefits such as Section 8 and zero-down loans. This causes the low-end market to become sold out, which pushes the working poor and middle class one tier up, to the point where working Americans are paying 50% of their incomes in rent just to find a relatively safe and clean place to live. Landlords are encouraged to overcharge, as tolerable neighborhoods and decent schools become more scarce.

        We also have the Air BnB debacle to blame, as former rentals are snatched up by industrial-scale illegal hoteliers.

        If Trump had made good on his promises re: immigration, we’d see an immediate drop in rents and home prices, coupled with a rise in wages. In short, we’re being squeezed from both ends, and the investor class loves what’s happening.

        1. Yep, it is bad out there. And people still support those businesses that hire illegals to save $.
          illegals cant get section 8 or welfare from the gov. Banks dont loan to illegals.

          1. ‘illegals cant get section 8 or welfare from the gov. Banks dont loan to illegals’

            Strikes one, two and three.

          2. “…illegals cant get section 8 or welfare from the gov. Banks dont loan to illegals.”

            Wow. This is the kind of dumbed-down thinking that leads to Democratic supermajorities.

        2. I think it’s both of the issues you named plus immigration. We’re letting in around 1 million legal immigrants every year, and probably another 3 million illegals, many of whom enjoy taxpayer-assisted living benefits such as Section 8 and zero-down loans

          Numbers may be off a bit, but I agree with you here. A lot of people I rent to at the complex where I work lately are Venezuelan refugees from Nicolas Maduro’s collapsing regime. Speaking Spanish is a must for working in my complex.

          1. Good point. At the complex I’m moving out of this weekend it’s mostly H1Bs. We’re kitty corner from Intel and have a “10” rated elementary school across the street.

      3. In some markets, many foreclosed houses were scooped up by corporations and turned into rentals. Safe to say they expect a certain return. So that’s another factor.

    2. Jeez… paying 3K/mo in Folsom. why didn’t you buy 3 years ago. Folsom is not costal california..

      1. Didn’t live in Folsom until last year, right when the feeding frenzy was peaking. Didn’t want to buy under those circumstances.

  6. “I would like to understand how and why rents skyrocketed in every single market in the US…”

    Millennials are the largest generation in the US now. That right there puts a squeeze on available rentals, particularly in the areas where the jobs are. Add to that the sizable number of Boomers who are transitioning from single-family homes to apartments themselves (and not all of those apartments are of the seniors-only type), and you’ve got demand outstripping supply.

    In my area, the development focus for the past few decades has been on single-family homes and townhomes more than on apartments, so the apartment supply gradually got tighter and tighter. At this point, the developers are still playing catch-up, especially since they spent the first several years of the current construction boom focusing on luxury and student apartments. What it means: we’re adding thousands of units to the market every year, but the vacancy rate hasn’t changed yet.

    “We’re letting in around 1 million legal immigrants every year, and probably another 3 million illegals”

    The first number is right, but the second is is most likely wrong. Current estimated illegal population in the US is 10-12 million total, and of them, the majority have been here for more than five years.

    1. “Millennials are the largest generation in the US now.”

      Naturally so now that boomers are dying off at a rate of 10,000/day but overall, the boomer demographic dwarfs anything before or after them including the “millennial” demographic.

    2. Pretty good explanation, and I generally agree. There is a rush to rentals by a number of different cohorts. Household formation is up since the economy is good. Our nanny could live at home with her family, but instead chooses to live with a roommate and shell out extra money for her own place. Lots of people like her moved back in with family during the Great Recession. Now they are coming out and deciding they want to try and gain “independence.”

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