skip to Main Content
thehousingbubble@gmail.com

Now Hoping To Cut Their Losses

A report from the Daily Mail on New York. “Justin Timberlake and Jessica Biel have reportedly slashed the price of their New York penthouse once again. After initially it putting up for sale for $7.995 million, the A-list couple are said to have cut the price of the SoHo pad down by more than $1.5 million in total, with the latest reduction $400,000.”

“The 2,598 square feet apartment was originally purchased by the couple for $6.5 million in 2010. But it’s now on the market for a modest $6.35 million, $1.5 million less than their original asking price.”

“Initially it was claimed they hoped to make a profit upwards of a million dollars after their recent acquisition of a penthouse at 443 Greenwich Street to the tune of $20 million. But the couple are now hoping to cut their losses, with it on the market at $150,000 less than their purchased price, TMZ reported.”

From Realtor.com on Idaho. “It’s been languishing on the market for seven long years. At long last, the gorgeous Idaho ranch-style retreat of A-list actor Bruce Willis has sold … for the drastically reduced price of $5.5 million. Which is a sweet deal for a lakefront ranch property that features a 20-plus-acre aspen glade, a large lodge-style home, and a fabulous outdoor pool with waterfalls, a grotto, and several waterslides.”

“Listing agent Travis Jones of Engel & Völkers walked us through the property’s history and explained why it had sat on the market for so long. The case of the languishing lodge came down to dollars.”

“‘Bruce’s estate was originally listed for $15 million way back in 2011, which was well above market value at the time,’ he says. ‘It was gradually reduced from there to the mid-$8 millions.'”

“His team took over the listing in 2016 and took a different tack. ‘We were able to negotiate a healthy price drop, and we listed for $6,495,000, and then dropped to $5,895,000. At that price, the home represented a very good value for the right buyer.'”

The Bellingham Herald in Washington. “Four out of five homes in Bellingham are now valued at more than $300,000. Much of the Bellingham market share is now in the $300,000 to $500,000 price range, coming in at 52.3 percent. But the number of homes in the upper price ranges also have swelled — In just four years, the number of Bellingham homes in the $500,000 to $1 million range jumped from 3,900 in 2014 to 9,300 this year.”

“The number of Bellingham homes over $1 million was 400 in 2014, but has now nearly tripled to 1,100, according to Zillow’s data. Sarah Mikhitarian, a senior economist at Zillow, noted that the median price of Bellingham homes under $300,000 in 2014 have appreciated 56 percent in four years. So a home in the $275,000 range in 2014 is selling for above $400,000 now.”

“Overall inventory is starting to creep upward because it is the end of the peak season, but interest rates are also going up, hurting the purchasing power of some buyers, said RE/MAX Whatcom agent DeLisa Boatman.”

“Boatman has a listing for a house near Lake Whatcom that was originally listed above $300,000. It’s a two-bedroom, 654-square-foot place that needs some work, she said. She recently lowered the price to $249,900 and it has seen a flurry of activity.”

From SocketSite in California. “It would appear we called the ‘top’ too soon, at least with respect to the number of homes listed for sale in the San Francisco. And having hit a 7-year high in September, the inventory of homes on the market in San Francisco has ticked up another 6.7 percent to 960 and total inventory is now running 31 percent higher on a year-over-year basis and 36 percent above its mark at the same time in 2015 (705), the year which remains an inflection point for the current cycle.”

“At a more granular level, the number of single-family homes currently listed for sale in the city (360) is now running 49 percent higher versus the same time last year while the number of listed condominiums (600) is up 22 percent, not including the vast majority of new construction condos for sale across the city.”

“At the same time, 23 percent of the active listings in San Francisco have undergone at least one price reduction, which is roughly even with the same time last year, and the number of homes on the market listed for under a million dollars (330) is the most since 2016. Keep in mind that recorded home sales in San Francisco were 5.9 percent lower on a year-over-year basis in August having dropped to a seven-year seasonal low in July and pending sales remain down.”

From Inman News on Texas. “A Houston mansion boasting five bedroom, nine bathrooms and 15,000 square feet of space is now the country’s most expensive foreclosed property, clocking in at $9.75 million after the original price was slashed from $15.9 million.”

“Located in the upscale River Oaks neighborhood, the mansion ‘features a wealth of amenities including meticulously manicured grounds, a circular motor court leading to a five-car garage, [and] a ballroom,’ writes Lisa Johnson Mandell for realtor.com. The bank-listed property entered the foreclosure market in late September and no details were immediately available about the identity of the previous owner or how that person fell into financial straits.”

“This could be a steal for any up and coming mansion buyer. Zillow estimates a mortgage will put you back $40,388 a month, so start saving those pennies. ‘It’s listed at a very aggressive price for such an exceptional property,’ listing agent Claudia Fathivand of Nan Properties told realtor.com. ‘It’s been well maintained, and is in move-in condition for someone of this particular taste.'”

This Post Has 18 Comments
  1. ‘Boatman has a listing for a house near Lake Whatcom that was originally listed above $300,000. It’s a two-bedroom, 654-square-foot place that needs some work, she said. She recently lowered the price to $249,900 and it has seen a flurry of activity’

    I dunno DeLisa, that might be big enough for a patio. I’m curious: why not $289,995 or such? Anyhoo, keep a sawin’ and a slashin’.

  2. ‘the number of single-family homes currently listed for sale in the city (360) is now running 49 percent higher versus the same time last year’

    Where are all these shacks coming from? Where did my shortage go?

    ‘while the number of listed condominiums (600) is up 22 percent, not including the vast majority of new construction condos for sale across the city’

    Yeah, there’s only a few tens of thousands of those.

  3. ‘the couple are now hoping to cut their losses, with it on the market at $150,000 less than their purchased price’

    Wa? But they’re A-list! Why would they give it away? Worse yet, they are paying to have it taken off their hands!

    DONG!

    1. ‘the couple are now hoping to cut their losses, with it on the market at $150,000 less than their purchased price’

      And still overpriced. Slash another 50-75% and you might get to a price that’s in line with long term historic price.

    1. Per your own Movoto data, single family home prices there are up 27% over last year. That’s not reflecting reality so why do you believe the data on condos?

  4. “interest rates are also going up, hurting the purchasing power of some buyers”

    Wouldn’t it hurt the purchasing power of ALL buyers? Except for those who are putting 100% down on a house in Bellingham.

    1. It’s the narrow road that one travels when burdened with Debt. It stretches beyond the horizon and has no exits, only tolls.

  5. We are still super early in the correction. The prices on the low end are totally inflated, but it looks like the 50-70% corrections are coming on the high end. You get a lot more bang for your buck at the high end now as these corrections appear to be the steepest.

    1. The correction won’t play out like a smooth line on a piece of graph paper, or hit all segments and places equally or at the same time.

      Because of that, I expect various media and RE sources to sporadically issue denials for a good while longer.

      …But it has begun, and is going to play out… This is the real deal, not a localized disturbance in the force.

  6. “The 2,598 square feet apartment was originally purchased by the couple for $6.5 million in 2010. But it’s now on the market for a modest $6.35 million, $1.5 million less than their original asking price.”

    But hey it was cheaper than renting!

    /S

  7. “A Houston mansion boasting five bedroom, nine bathrooms”
    — Why would a house with five bedrooms need nine bathrooms?

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top