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.”