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Owners May Have To Lower Prices On Land That’s Overpriced

A report from the Idaho Statesman. “After months of consistently climbing real estate prices, Ada County home buyers are finally getting some slight relief. The median price for all homes sold in Ada County in September fell 4.7 percent, according to the Intermountain Multiple Listing Service. The median was $318,990, compared with $334,400 the previous month.”

“The reasons? One agent says they appear to include overpricing, rising mortgage-interest rates, a reduction in the flow of people moving to the Boise area, and the onset of fall. ‘I don’t want to say dramatic, but it’s been a notable shift,’ said Rick Gehrke, an agent with RE/MAX Executives in Eagle.”

“The decline affects both new and used homes. The median price for an existing home dropped to $299,950 in September, down from August’s record $309,200. New homes fell to $367,900, a nearly 5 percent drop from $386,470. And despite 200 more active listings than the previous month, pending sales dropped by nearly 100.”

“And prices may finally be getting too high. Land prices in Eagle, for example, rose so quickly that ‘bare dirt for new purchases has been limited,’ Gehrke said. ‘I think the reasonably priced lots have kind of dried up, and (landowners) may have to lower prices on land that’s now overpriced,’ he said.”

“He’s that the Valley’s real estate market may be finding stable footing. ‘The influx of people seems to have slowed down. We really think prices are going to stabilize,’ Gehrke said. ‘A hot market isn’t good for anyone.'”

“Buyers felt overwhelmed in recent months, Gehrke said, and settled for homes they may not have been happy with. ‘I think we’re going to see people take a deep breath and feel more comfortable going and buying a home. They won’t feel pressure to grab something they can get instead of what they really want,’ he said.”

From King 5 News in Washington. “Real estate markets, including Seattle’s, are seeing a dramatic slowdown, according to Redfin. Seattle was one of 14 metro areas in the country this spring where half or more of the homes listed for sale between March 5 and April 29 went under contract within two weeks.”

“By mid-September, spring’s fastest-selling markets, including Seattle, saw big declines. About 35 percent of homes for sale in Seattle were off the market in two weeks or less over the summer – a drastic change from spring, when 72 percent were off the market within two weeks.”

“According to Redfin Chief Economist Daryl Fairweather, sellers are waiting longer for offers and many are having to drop their list price to attract buyers. Housing inventory – or how long it would take to sell all homes on the market – sat at 2.83 months in King County, which is a 78 percent increase over last year. Snohomish (2.18 months), Pierce (2.01 months), and Kitsap (1.93 months) counties all saw increases in inventory as well.”

“Inventory in King County has steadily risen about 40 percent since may.”

This Post Has 8 Comments
  1. Eeee-bola Treasure Valley!

    BTW, I’m going to have to speed these posts up when there’s so much to cover.

  2. ‘Buyers felt overwhelmed in recent months, Gehrke said, and settled for homes they may not have been happy with. ‘…They won’t feel pressure to grab something they can get instead of what they really want’

    Now wait a minute Rick. Are you saying no more feeding the squirrels and no more rolling with it and letters? Golly, some people may have borrowed too much in this “pressure to grab something”.

    1. That has to be a sharp kick in the gut. Buying an over priced shack you don’t even like, and then seeing the home you really wanted sit on the market at a price lower than you paid. Just think about the feeling of seeing it sold out of foreclosure for 30% less. Coming soon to a town near you.

  3. ‘According to Redfin Chief Economist Daryl Fairweather, sellers are waiting longer for offers and many are having to drop their list price to attract buyers. Housing inventory sat at 2.83 months in King County’

    But under 6 months is a sellers market? Dropping prices?

  4. ‘I don’t want to say dramatic, but it’s been a notable shift,’ said Rick Gehrke, an agent with RE/MAX Executives in Eagle.”

    We know you don’t want to use words that’ll spook the herd, Rick, but “cratering” is so much more precise than “dramatic slowdown.”

  5. “Buyers felt overwhelmed in recent months, Gehrke said, and settled for homes they may not have been happy with.

    And who’s fault is that? No one forced them to buy into a bubble.

  6. Does anyone have a chart of home values v the major stock indexes since 2005 or so? I would like to see how the what collapsed and recovered first I can decide what to do with my stock portfolio. I haven’t been investing more for a year or so, but instead have been hoarding cash, but am thinking about selling significant amounts of stock if we have a dead cat bounce next week. Thanks.

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