The Problem With Saying That 2020 Will Mark The Bottom Is That It Suggests It Will Go Up After That
A report from KTVU in California. “Bay Area home prices as well as those in other California instances, may have reached a temporary limit on what people can and are willing to pay. ‘What I’ve noticed in Santa Clara County along last year in the last twelve months, you know, prices came down about 6%,’ said Joe Velasco, an agent for Compass Real Estate in the Southbay and Peninsula.”
From KPIX 5 in California. “Despite somewhat dire predictions by the real estate website Zillow about the future of the Bay Area’s housing market in 2020, several realtors contacted by KPIX 5 says they see a possibility of a slight slowdown rather than a crash in the coming year. ‘Right now, the sellers are willing to negotiate. And you can buy a nicer home at a fair price without having to overbid’ said Sandy Jamison, the incoming president for the Santa Clara County Association of Realtors.”
“That is a change compared to recent years when buyers often found themselves in a bidding war, offering thousands above the initial asking price just to be competitive. It appears the pendulum has swung in the direction of buyers. ‘You still see it every day — people who get a property for under the asking price. You can’t come in at $100,000 or $200,000 off the asking price, but there’s still some wriggle room,’ said realtor Darius McClelland.”
From Peoria Times in Arizona. “According to RealtyHop, ‘Glendale ranked in the top 10 hottest housing markets in December, with a -1.92% change in asking price.’ ‘Peoria saw a price drop of only 1.7% —even better than Glendale,’ said Shane Lee, a data analyst for RealtyHop. Glendale ‘increased three spots to become the fifth hottest market this December,’ according to the RealtyHop report. ‘Similar to nearby cities in Arizona, Glendale properties required very small discounts from initial offering to sell.'”
“Real estate people say West Valley home sellers often get very close to — or even over – the asking price. ‘Most of Glendale and Peoria (sellers) are getting multiple offers in, which could lead to a sales price over the asking price. Or at least minimizing the price drop,’ said Elise Fay, of eXp Realty.”
“‘To talk about price drops, we have to talk about how people are negotiating,’ Lee said. ‘A lot of times sellers will set a higher price. The makes listings stay on the market longer, so you’ll start seeing price drops. Generally speaking, a larger percentage of price drop means sellers are not able to attract buyers.'”
The Sun Sentinel in Florida. “While developers are indeed building new homes around the region, many of them are pegged at $500,000 and up, not in the more comfortable $250,000 to $400,000 price range. ‘Every development I see they are building is on the higher end,’ said Greg McBride, an analyst at BankRate. In the meantime, high-end luxury home sellers have had to temper their sales price expectations by lowering their original list prices. ‘I think many of our sellers have been adjusting their prices in the last half of 2019 because many of them have been on the market for two to three years”,’ said Ron Shuffield, CEO of Berkshire Hathaway HomeServices, EWM Realty. ‘In order to attract the buyers, they are reducing.'”
“Brian Soler is a marketing executive with PMG, developer of Society Las Olas, formerly known as X Las Olas, the shared-living development in downtown Fort Lauderdale. He said his company is aiming for tenants who can’t afford the higher-end apartments that go for $2,000 to $3,000 and more. ‘What we see is a luxury oversupply,’ he said. ‘People are priced out’ and ‘can’t quite afford that $2,000-plus price point for rent.'”
The Chicago Tribune in Illinois. “A three-bedroom, 4,745-square-foot condominium unit on the seventh floor of a vintage 12-story building on East Lake Shore Drive sold Nov. 15 for $2.8 million — some 38% less than the seller paid for it in 2007. The seller, Janet Melk, formerly was married to real estate investor John Melk, who helped develop Fisher Island in Miami, Florida. On East Lake Shore Drive, Melk paid $4.55 million in 2007 for her vintage condo unit. She first listed it in April 2018 for $4.75 million. She cut her asking price to $4.69 million in June 2018 and then to $4.5 million the following month. Later in July 2018, she cut the asking price further, to $3.995 million, followed by a price cut in February to $3.895 million and a final decrease to $3.499 million in June.”
From Mansion Global on Colorado. “A large Colorado ranch that served as the location for Discovery Channel special, ‘I, Caveman, has sold for $27 million. While short of the $45 million the property listed for in 2017, the price makes the deal the largest ever recorded for a noncommercial property in Routt County, where the ranch is located, according to the agent, Brian Smith of Hall and Hall.”
“The property had undergone a price cut in early 2019 and was most recently asking $33.5 million, Mr. Smith said. He said the deal was part of a pickup in the ranch market toward the end of the year in Colorado, which faced a glut in high-end inventory in 2019. Another major property in Colorado, known as the Stealey Mountain Ranch, also sold for roughly $22 million in December, records show. The Wall Street Journal recently reported that a generational shift has led to a flood of supply of such ranches in Colorado, where some of the country’s most storied properties are located.”
From The Day. “No one buys a home believing that they’ll lose it sometime in the future. They expect, or at least hope, that regular mortgage payments and rising home values will build up a considerable amount of equity and let them reap a nice profit when they decide to sell the home. Unfortunately, it doesn’t always work out that way. Economic conditions or other factors can cause home prices to slump, leaving you with a mortgage balance higher than what you owe on the property.”
“In these circumstances, some homeowners opt for what is known as a strategic default. Unlike a standard foreclosure, where a lender repossesses a property because the borrower is unable to keep up with payments, a strategic foreclosure occurs when a borrower can afford to continue mortgage payments but decides it is more advantageous to stop them.”
“Triggering a strategic default is a rather simple process. Ana Durrani, writing for Realtor.com, says a homeowner makes the decision to stop sending mortgage payments to the lender, who eventually begins foreclosure proceedings. Julia Kagan, writing for the financial site Investopedia, says the practice has been nicknamed ‘jingle mail’ since some homeowners take the explicit step of mailing their keys to the bank when they stop paying their mortgage.”
“The most common reason for undertaking a strategic default is to escape what the borrower has come to see as a bad investment. Negative equity can sometimes amount to tens of thousands of dollars, and it will take years of ongoing payments to even break even. Allowing the property to go into foreclosure allows a borrower to use their funds elsewhere instead of putting them toward an unproductive mortgage.”
From Atlanta Black Star. “It looks ‘Love and Hip Hop: New York’ viewers aren’t buying Chrissy Lampkin‘s tears when it comes to the recent foreclosure of her home. During last week’s episode, Lampkin’s longtime fiancé rapper Jim Jones broke the news to her that their New Jersey house was lost to foreclosure. Reportedly, in 2006 the Dipset rapper took out a $680,000 mortgage for the home and promised to make monthly payments of $4,467, but those payments stopped around 2010. In September, the home reportedly was auctioned off for $100.”
“After learning of her and Jones’ mishap, Lampkin was worried that her foreclosure troubles would affect her real estate company, and she proved to be right. Lampkin was forced to face several investors in her real estate company and explain to them why her home was foreclosed. The clip showed an investor questioning Lampkin about her foreclosure possibly affecting their ‘quarter million project’ they apparently had set in stone.”
“Before the actress could respond, she broke down in tears and said, ‘It’s not like me to be irresponsible. It’s crazy that I have to sit here and explain myself to y’all over something that I had no control of, but I owe you guys that because you do business with me.'”
From CNBC on New York. “Real estate sales in Manhattan have fallen eight out of the past nine quarters, according to a report from real estate brokerage firm Douglas Elliman and appraiser Miller Samuel. The average sales price fell 7.5% to $1.8 million in the fourth quarter of 2019 and the median sales price fell below $1 million. Total sales were down, discounts were up and there is now an eight-month supply of unsold apartments.”
“Sales of apartments priced at $5 million or more plunged 38% in the quarter and there is now a two-year supply of luxury apartments on the market. Beyond the official inventory, brokers say there is a mountain of ‘shadow inventory’ — or apartments that aren’t officially listed but are waiting for market conditions to improve and sales to clear before they list. According to Halstead Development Marketing, there is a now a six-year supply of new development apartments. The biggest glut is on ‘Billionaire’s Row.'”
“While many brokers say they’re optimistic about a potential turnaround in 2020, real estate experts say they expect a continued — though perhaps slower — decline this year as tax pressures and rising inventory keep buyers on the sidelines. ‘I think we’ll see more of the same,’ said Jonathan Miller, CEO of Miller Samuel. ‘The problem with saying that 2020 will mark the bottom is that it suggests it will go up after that. And I think we still have another couple of years of moving sideways.'”
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Sales of Manhattan’s priciest apartments plunge almost 40% in fourth quarter
Where’s Diane?
Likely hovering around a cauldron stirring up her false real estate narrative.
So my grasp of supply and demand fundamentals is a bit hazy, but if sales of anything plunges by 40 percent, is it fair to say steep price cuts are in order to stimulate demand?
She’s busy with appointments with her hypnotherapist, astrologist, psychiatrist, shaman and Buddhist monk. The housing downturn has her Chakras all out of whack.
‘Glendale ranked in the top 10 hottest housing markets in December, with a -1.92% change in asking price.’ ‘Peoria saw a price drop of only 1.7% —even better than Glendale’
Recently Stockton CA was tops with price drops like this. That’s how bad the reporting is now. “Oh look, Stockton is crater less than all the rest!”
‘That is a change compared to recent years when buyers often found themselves in a bidding war, offering thousands above the initial asking price just to be competitive.
Gosh, I hope nobody over-borrowed in such an environment.
‘It appears the pendulum has swung in the direction of buyers’
Wa? But shortage? IPO!
‘You still see it every day — people who get a property for under the asking price. You can’t come in at $100,000 or $200,000 off the asking price’
Sure I can. Or better yet, I could just avoid the entire state and save myself the trouble. You people are so fooked.
‘You still see it every day — people who get a property for under the asking price. You can’t come in at $100,000 or $200,000 off the asking price’
Who wants to wager on this?
A little something called “gravity” is on my side.
‘Beyond the official inventory, brokers say there is a mountain of ‘shadow inventory’ — or apartments that aren’t officially listed’
Open discussion of market manipulation – check!
I’m overflowing with crater links right now. I’m gonna have to push out more posts, especially about CRE. It’s a gotdam disaster out there.
Which brings me to the Zandi article about gluts and shortages. I don’t expect the media to know who I am or agree with me. But I do expect that objective economists or the like could at least consider the possibility of a mania being responsible for such contradictions.
“I’m overflowing with crater links right now. I’m gonna have to push out more posts, especially about CRE. It’s a gotdam disaster out there.”
Looking forward to them! I have noticed tons too but am way to lazy and novice to try and filter through all the BS, easier to get the real deal here ;). Appreciate your work and the blog contributors!
Pshaw, Ben. Surely if a cratering of this magnitude was occurring, real estate expert Diana Olick would’ve sounded the klaxon.
2020 the year many homeloaners become homemoaners.
Top.of.the.mornin’ to all ya $helter.$hack.True.Believer$!
” … I don’t expect the media to know who I am or agree with me. But I do expect that objective economist$ or the like could at least consider the possibility of a mania being re$pons$ible for such contradiction$”
Forbes | EDITOR’S PICK| Jan 3, 2020,
The Fed Is Creating A Monster Bubble
John Mauldin|Senior Contributor Markets |President of Mauldin Economics
History’$ Looses$t Monetary Policy
Beginning with Greenspan, we have now had 30+ years of ever-looser monetary policy accompanied by lower rates. This created a series of asset bubbles whose demises wreaked economic havoc.
Artificially low rates created the housing bubble, exacerbated by regulatory failure and reinforced by a morally bankrupt financial system. And with the system completely aflame, we asked the arsonist to put out the fire.
Yes, we did indeed need the Federal Reserve to provide liquidity during the initial crisis. But after that, the Fed kept rates too low for too long, reinforcing the wealth and income disparities and creating new bubbles we will have to deal with in the not-too-distant future.
This wasn’t a “beautiful deleveraging” as you call it. It was the ugly creation of bubbles and misallocation of capital. The Fed shouldn’t have blown these bubbles in the first place.
On the Way to Cri$i$
The simple conceit that 12 men and women sitting around the table can decide the most important price in the world (short-term interest rates) better than the market itself is beginning to wear thin.
Keeping rates too low for too long in the current cycle brought massive capital misallocation. It resulted in the financialization of a significant part of the business world, in the US and elsewhere.
The rules now reward management, not for generating revenue, but to drive up the price of the share price, thus making their options and stock grants more valuable.
Coordinated monetary policy is the problem, not the solution. And while I have little hope for change in that regard, I have no hope that monetary policy will rescue us from the next crisis.
Let me amplify that last line: Not only is there no hope monetary policy will save us from the next crisis, it will help cause the next crisis. The process has already begun.
I predict an unprecedented crisis that will lead to the biggest wipeout of wealth in history. And most investors are completely unaware of the pressure building right now.
Hwy…Here is one from Mauldin on December 21st for a year end summary…I have read it twice to let his opinions sink in a bit…I will read it one more time…Its a PDF by the way…
https://ggc-mauldin-images.s3.amazonaws.com/uploads/pdf/TFTF_Dec_20_2019.pdf
Anyone that make$ prediction$ of fal$e monie$ vani$hing $udden like, always gets my attention$!
Tanks scdave … (& Happy entire year of 2020 to you & yearns)
the biggest wipeout of wealth in history
Borrowed money has not always been considered “wealth”.
Mauldin is upset because at 2% the gravy isn’t thick enough to keep his client’s bellies and his own from growling. He needs a hoe and a few years of study at Pol Pot university.
Thanks for sharing this article. Link here:
https://www.forbes.com/sites/johnmauldin/2020/01/03/the-fed-is-creating-a-monster-bubble/#17c715dc2670
– Monster bubble = The Everything Bubble. Check!
“Central bankers are the ones to blame. In a sense, they are far more powerful and dangerous than the elected ones.”
– Unelected, unaccountable, un-auditable; also head of the global banking cartel/cabal and rabid Keynesians/Progressives. Check!
“Keeping rates too low for too long in the current cycle brought massive capital misallocation. It resulted in the financialization of a significant part of the business world, in the US and elsewhere.”
– Gross misallocation of capital + financialization. Check! (Hint: we need more luxury housing! #sarcasm)
“Coordinated monetary policy is the problem, not the solution. And while I have little hope for change in that regard, I have no hope that monetary policy will rescue us from the next crisis.”
– Centrally planned, command and control economics vs. free markets. Check!
“Let me amplify that last line: Not only is there no hope monetary policy will save us from the next crisis, it will help cause the next crisis. The process has already begun.”
– The outcome of the deflation of The Everything Bubble is baked into the cake. Housing, Stocks, Corp. Bonds. The third and largest asset bubble of the 21st Century (so far). Check!
“I predict an unprecedented crisis that will lead to the biggest wipeout of wealth in history. And most investors are completely unaware of the pressure building right now.”
– While nobody knows the future, I’ve heard comparisons of the current mania to the Roaring Twenties, and with similar outcomes. We’ll know soon enough. Housing is already in decline. Stocks this year, and as soon a Q1, IMHO. Corp. Bonds: IG is the new HY (read low credit quality + cov.-lite).
—————
https://www.ft.com/content/46c4b186-8308-11e9-b592-5fe435b57a3b
Federal Reserve
Fed candidate slams bank’s ‘Soviet’ power over markets
Trump pick Judy Shelton questions if Fed should set interest rates
James Politi in Washington May 31, 2019
“How can a dozen, slightly less than a dozen, people meeting eight times a year, decide what the cost of capital should be versus some kind of organically, market supply determined rate? The Fed is not omniscient. They don’t know what the right rate should be. How could anyone?” Ms Shelton said.
“If the success of capitalism depends on someone being smart enough to know what the rate should be on everything . . . we’re doomed. We might as well resurrect Gosplan,” she said, referring to the state committee that ran the Soviet Union’s planned economy. Ms Shelton did postdoctoral research on the Soviet economy at Stanford University’s Hoover Institution, and was designated to be the Russia expert on the board of the National Endowment for Democracy.
She also said that the Fed should continue to reduce its balance sheet below the $3.5tn target set by Jay Powell, the chairman. “I would rather the Fed be less of an entity. When a central bank buys up government debt, that’s the beginning of compromised finances.”
She also said the Fed had become so influential that it unnaturally drove investment decisions and affected financial markets. “It’s the distorting aspect of the Fed that is the worst aspect — it’s a wag-the-dog situation. People are fixated on the Fed and are making money by arbitraging, trillions of a second after the latest FOMC announcement,” she added.
“I’m overflowing with crater links right now.”
– ‘Sounds like a good night for crater taters! More craters than the moon. The slow-motion housing train wreck continues apace… Cue sarcastic “got popcorn?” meme. 🙂
#gotpopcorn?
I spent the afternoon scouting pre-foreclosures for an auction this week. I also spotted a potentially huge auction trend here in Arizona yesterday. I’m going to try and contact a company involved and see how widespread it is. I’ll let the cat out of the bag ASAP.
Citizen journalism at its finest.
“You can’t come in at $100,000 or $200,000 off the asking price, but there’s still some wriggle room,’ said realtor Darius McClelland.”
Darius (millennial REALTOR) is about to get schooled.
Ramen for you, soon…
Especially since $100k or $200k is all a shack should cost in the first place.
“A three-bedroom, 4,745-square-foot condominium unit on the seventh floor of a vintage 12-story building on East Lake Shore Drive sold Nov. 15 for $2.8 million — some 38% less than the seller paid for it in 2007. The seller, Janet Melk, formerly was married to real estate investor John Melk, who helped develop Fisher Island in Miami, Florida. On East Lake Shore Drive, Melk paid $4.55 million in 2007 for her vintage condo unit. She first listed it in April 2018 for $4.75 million. She cut her asking price to $4.69 million in June 2018 and then to $4.5 million the following month. Later in July 2018, she cut the asking price further, to $3.995 million, followed by a price cut in February to $3.895 million and a final decrease to $3.499 million in June.”
The Greedhead Chronicles is filling up with cautionary tales of “I’m not giving it away!” greedheads chasing the markets down. Get to sawin’ and slashin’, greedheads – it only gets worse from here.
San Mateo, CA Housing Prices Crater 15% YOY As One Bay Area Broker Concedes, “Every Closing Is A Crime Scene.”
https://www.zillow.com/san-mateo-ca/home-values/
*Select price from dropdown menu on first chart
As a leading economist advises, “Mortgage debt is the most toxic and damaging debt of all. Avoid it at all costs.”
jeff
January 3, 2020 at 2:29 pm
“LOL…$5 will be a bargain…Try gas rationing…”
Is this a prediction or just your giddiness from the event?
Not sure if you are old enough to have experienced it Jeff…I went through gas rationing…Last digit on your license plate dictated what days you could get gas and the lines at the gas station could easily be more than a hour…Just imagine what that would do to our national economy although, with electric vehicles now days, maybe it would not be as bad as what I experienced…
The globe is awash in crude as more is formed everyday. Beautiful, sweet, cheap crude.
Retail fuel prices are closer to $1 than anything else.
A gallon of crude oil right now is $1.50
Crude contracts are traded by the barrel, not gallons.
Considering domestic producers are profitable down to $8 a barrel, crude is closer to $15 a barrel than anything else.
I agree; the abiotic theory of oil is starting to sound more reasonable as time progresses. If there is a nuclear reactor in Earth’s core, is it that far fetched to believe that it might be creating petroleum as a byproduct?
If there is a nuclear reactor in Earth’s core, is it that far fetched to believe that it might be creating petroleum as a byproduct?
It’s farfetched to me that a nuclear reactor is going to create large volumes of organic stored energy from minerals. But solar combined with photosynthesis creating it? Seems like a slam dunk to me.
I agree.
The key is large amounts. Some oil produced by non-organic carbon in the Earth, sure but It does not appear to meaningful and certainly will not recharge any oil fields in any timeframe useful to man.
https://en.wikipedia.org/wiki/Abiogenic_petroleum_origin
You seem to have missed what I posted right below that comment,
jeff
January 3, 2020 at 2:36 pm
“Get ready for $5 gas after we go to war with Iran ??”
Please forgive me for everything except the giddy part. I assume you were talking about what would happen if an actual war with Iran were to happen not the assassination that just took place.
Now the gas rationing part.
Yes, I am old enough to remember two of them. My Dad owned a gas station in Connecticut, I worked there at the second which I believe was the summer of 1979 before I went to college. In Connecticut it was odd and even licence plates and 5 gallons per car limit. There was a mile and a half line when we opened at 7 am and we only pumped gas until 10 am. Lot of pissed off people.
I do have a story from a guy I knew who worked at another gas station in town and what he got in trade for a tank of gas from a young lady with the wrong plate on the wrong day after the pumps had been shut down but this is not the appropriate place to tell it.
We get the picture. Not hard to imagine what was offered in barter.
But you don’t know where, when ad how and that is what makes the story.
Similar to the old bumper sticker from the same era. Gas, azz or grass, no one rides for free.
Hehe…even billionaires and presidents are unable to prevail against the power that lays between a woman’s thighs.
I dedicate this song to Bill and Hillary Clinton who both could not resist that power:
https://www.youtube.com/watch?v=K7r-V1id038
https://www.rasmussenreports.com/public_content/politics/trump_administration/prez_track_jan03
Trump has an approval rate 4 percentage points higher than Obama at the same point in their presidencies. As long as Trump does not try to nation build in the Middle East he should coast to victory. It is fine to punish our enemies. We won the war in Afghanistan, the first year. We just needed to pull out. Only globalists need to nation build. Nationalists just need to deter unacceptable behavior directed at their country. The U.S. did not try to change the entire lifestyle of Tripoli, it just punished the Barbary pirates to prevent more raids. If we had engaged in nation building, we would have never left modern day Libya. We would have been engaged for several centuries in nation building.
Christopher Walken – The Lion speech. Sometimes the lion needs to remind the hyenas and baboons that he’s still King of the Jungle.
https://www.youtube.com/watch?v=4KB2xignE6c
The term “longtime fiance” should raise a lot of red flags.
Some guys refuse to bend the knee.
A bunch of 2nd Amendment supporters in Virginia are refusing to bend a knee.
Not to mention his profession.
Manhattan, NY Housing Prices Crater 22% YOY As Rental Rates Plummet
https://www.zillow.com/new-york-ny-10016/home-values/
*Select price from dropdown menu on first chart
“The beatings will continue”
And then the music stopped…
Spooked by property tax increases, Chicago developers look to other cities
https://www.stltoday.com/business/spooked-by-property-tax-increases-chicago-developers-look-to-other/article_848a3466-9956-534b-b345-7ac80190335d.html
And when property tax revenue fails to grow fast enough to keep up with the the attempts to cover the shortfalls at the city, county and state level, the feedback loop of tax hikes and people voting with their feet will intensify.
It just keeps getting worser:
https://californiaglobe.com/section-2/just-the-facts-about-californias-new-household-water-rationing-law/
What is the real story behind California’s 55 gallons of water per day, per person? California Globe recently summarized some of the state Legislature’s most unforgettable moments in 2019, including some water laws.
California voters have approved more than $30 Billion in Water Bonds which has provided no new water storage, and water rationing on the horizon.
And …
Kristi also addressed in detail the 55 gallon per day limitation per person in household water use, after an astounding KTLA report explaining why a single person living alone would not be able to take a shower and do a load of laundry without going over the limit and being fined $1,000 for each offense.
not be able to take a shower
Really? I guess it depends on how much you try to conserve water. I have a 5 gallon hot water tank on my boat. The shower is an on/off sprayer on a hose, similar to a kitchen sink sprayer. Between my partner and I we’ve never run down that tank to cold. The 50 gallon fresh water tank that feeds this and the sinks (and toilet) lasts the two of us 4 days if we’re not conserving. That includes cooking and washing dishes. Suppose you can figure out washing a load of clothes with the other 90 gallons a day.
Californians probably can’t figure this out. The poorest state in the country might as well be the dirtiest.
What blows me away is that they sold $30B of Water Bonds and have essentially nothing to show for it.
Are you sure your toilet on your boat doesn’t use sea water? Mine does. The two of us get by on 2 days with showers on the boat with 33 gallon tank when we are on the islands.
“In Socialism, you wait for bread. In Capitalism, bread waits for you.”
– bread, water, whatever.
California voters have approved more than $30 Billion in Water Bonds which has provided no new water storage, and water rationing on the horizon.
true I read some of the money is going to study bike paths . Not happy with 30B they tried another bond measure about clean water but it lost.
HOA’s across the state rub their hands in anticipation of fining residents who fail to maintain their lawns to golf course putting green standards…
I may have to convert a pool into a ball or foam pit!
I’ve liked Meat Loaf for years. The fact that he’s scoffing at St. Greta and The Narrative makes me like him that much more.
https://www.dailymail.co.uk/tvshowbiz/article-7836977/Self-confessed-sex-god-Meat-Loaf-72-threesomes-losing-70lb-climate-change.html
+1
Yes. Of course, I am really not against her, I am against the people who are using her.
– Three great examples of Realtor BS-speak. AZ is a little behind the curve, w/ CA always leading the nation, but the trend is in place and the outcome will be the same in all (overpriced) MSAs/markets, which doesn’t leave much to be excluded anywhere. The ‘hottest’ markets now have the least sales price discount to list price. Quite a change from last year, when they were measured in sales price paid over list price. This sea change in the markets seems to be completely missed by the REIC, or maybe they just want to apply the positive spin, aka lipstick on a pig? Sheesh! What a bunch of malarkey! Joe Biden. Paging Joe Biden…
From KPIX 5 in California. “Despite somewhat dire predictions by the real estate website Zillow about the future of the Bay Area’s housing market in 2020, several realtors contacted by KPIX 5 says they see a possibility of a slight slowdown rather than a crash in the coming year. ‘Right now, the sellers are willing to negotiate. And you can buy a nicer home at a fair price without having to overbid’ said Sandy Jamison, the incoming president for the Santa Clara County Association of Realtors.”
“That is a change compared to recent years when buyers often found themselves in a bidding war, offering thousands above the initial asking price just to be competitive. It appears the pendulum has swung in the direction of buyers. ‘You still see it every day — people who get a property for under the asking price. You can’t come in at $100,000 or $200,000 off the asking price [not yet, anyway] , but there’s still some wriggle room,’ said realtor Darius McClelland.”
From Peoria Times in Arizona. “According to RealtyHop, ‘Glendale ranked in the top 10 hottest housing markets in December, with a -1.92% change in asking price.’ ‘Peoria saw a price drop of only 1.7% —even better than Glendale,’ said Shane Lee, a data analyst for RealtyHop. Glendale ‘increased three spots to become the fifth hottest market this December,’ according to the RealtyHop report. ‘Similar to nearby cities in Arizona, Glendale properties required very small discounts from initial offering to sell.’”
“Real estate people say West Valley home sellers often get very close to — or even over – the asking price. ‘Most of Glendale and Peoria (sellers) are getting multiple offers in, which could lead to a sales price over the asking price. Or at least minimizing the price drop,’ said Elise Fay, of eXp Realty.”
Virginia is going to be a testbed for the Democrat’s plans to disarm the population on the orders of their globalist oligarch donors. Methinks Comrade Northam is going to need a bigger goon squad and a lot more prisons.
https://www.libertynation.com/va-gov-northams-proposed-gun-confiscation-squad/
a bigger goon squad
Just another step to bring back slavery. But Hey, Virginia has already been split in half once.
West Virginia is about to become West WEST Virginia?
Methinks that a lot of gun owners who had bought the line that gun confiscation was just a Republican scare tactic will now being voting Republican in the next election. Wouldn’t be ironic if Bloomberg spends one billion dollars and becomes the Democrats’ nominee but then loses the general election because Virginia swings back Republican?
https://westernrifleshooters.files.wordpress.com/2019/12/4ca6339c7f7250fd.jpg
Lenny Bruce Discussing Fake News
‘Lenny Bruce had a television special in 1959 entitled “The World of Lenny Bruce.” On this program he accentuates every taboo of mass media. In this first segment on the program he exposes media sensationalism, or what we currently call “Fake News.”
https://www.youtube.com/watch?v=RHW51JGtzS4
Florida developer looks to sell office properties – Orlando
Several sites either face foreclosure or have been repossessed by a lender — or have had a new owner — in recent months.
http://www.bizjournals.com%2Forlando%2Fnews%2F2019%2F12%2F30%2Fembattled-developer-aims-to-sell-orlando-office.html&usg=AOvVaw1AFhhbIMzAxNKaDMUUlqYT
When are “progressives” going to see that they are just tools manipulated by billionaires? This proposal means that the workers will live like people in Soylent Green in the future. However, it is certainly a way to keep house prices up: https://www.breitbart.com/economy/2020/01/03/vox-com-editor-says-u-s-needs-600-million-immigrants/
When are “progressives” going to see that they are just tools manipulated by billionaires?
Is that a rhetorical question?
manipulated
Unable or unwilling to survive by their own productive means, weak and corrupt people are drawn to wealth and power, expecting to be first in line for the table scraps. This is the story of Socialism (Progressives).
The only good thing is Trump has used TDS against them and they have repeatedly dropped their masks. They used to pretend to be for border control. Now, he has shown that they prefer Iran to the U.S. KAG
I think many Sunnis are quite happy with what we did in Iraq.
https://dailycaller.com/2020/01/03/iraqis-celebrate-in-streets-praise-trump-after-soleimani-death/
Tom Brady joins the swelling ranks of those forced to saw & slash as their greedhead wish prices fail to attract any interest.
https://www.latimes.com/business/real-estate/story/2020-01-04/hot-property-tom-brady-looks-to-score-in-the-massachusetts-housing-market
I was really surprised reading those Greenwich, CT stories of falling mansion prices. I thought that was where the 0.1% lived, but I guess they’re buying islands these days.
where the 0.1% lived
Median household income $92,000. Median house price > $2,000.000. A truly rarefied concentration of people living like the rich with a financial death sentence hanging over their heads.
Housing prices are falling everywhere in the northeast and mid-atlantic.
I think it really shows how important the ability to deduct home interest and especially taxes were to the rich.
Arizona: ‘Peoria saw a price drop of only 1.7% —even better than Glendale,’ said Shane Lee, a data analyst for RealtyHop. Glendale ‘increased three spots to become the fifth hottest market this December,’
Only in real estate will you have a drop in prices, even modest, characterized as a “hot market.” As I work in this business I guess I’m never surprised about the BS.