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You Might Be Able To Find Better Deals When There’s A Glut Of New Units

A report from the Post Independent in Colorado. “Garfield County stands as a bright spot in the Colorado real estate market, which is dipping across the state, but the strong sales numbers may not last long. Garfield County real estate agents have noticed a slowdown in showings, and said price reductions are becoming more common.”

“For mountain counties like Eagle, Summit and Gunnison, the number of homes sold declined across the board. ‘Agents are feeling a slowing across all communities. Whether it’s seasonal or otherwise remains to be seen,’ said Erin Basset, a Glenwood Springs-area Realtor.”

From Curbed New York. “According to a report from Localize.city, the city has already saw more than 12,800 new housing units open in the first half of 2018 and another 31,000 are expected to open by 2020. In all, it is projected that New York will gain 90,000 new apartments between 2016 and 2020.”

“‘Buyers and renters sometimes make decisions they later regret because they didn’t know what was coming: noise, poor air quality, fewer parking spots (in the short term) or a changed neighborhood character further down the road,’ says president Steve Kalifowitz. ‘On the flip side, you might be able to find better deals when there’s a glut of new units because of increased competition.'”

From SocketSite on California. “With the number of homes actively listed for sale in the San Francisco hovering around 960, the 7-year high it hit last week, inventory levels appear to have peaked for the year and are now running an average of 40 percent higher on a year-over-year basis.”

“At the same time, with the number of homes on the market listed for under a million dollars having hit a two-year high last week, 25 percent of the homes currently listed for sale in San Francisco have undergone at least one price reduction, which 4 percent higher than at the same time last year.”

“And while inventory levels in San Francisco should now decline though the end of December with normal seasonality in play, expect the percentage of listings with a price cut to rise.”

From Curbed San Francisco. “When this Castro Victorian renovation landed on the market in February, it caused quite the fuss, due in large part to the fact that the original listing had it located a fraudulent neighborhood. (Dolores Park West doesn’t exist.) Issues of eschewing the Castro name aside—a loathsome practice you can read all about—this home also polarized readers for another reason: its audacity.”

“After being purchased in 2014, the 1907 Victorian went through a major renovation. The original asking price was $11.85 million. No one bit. So now, after a new batch of photos and a new realtor, the asking price has dropped to $9,400,000.”

This Post Has 17 Comments
  1. ‘a slowdown in showings, and said price reductions are becoming more common’

    Eeee-bola to Garfield County, Eagle, Summit and Gunnison, Glenwood Springs!

  2. ‘In all, it is projected that New York will gain 90,000 new apartments between 2016 and 2020’

    And they’ve already got a crater going on.

  3. ‘with the number of homes on the market listed for under a million dollars having hit a two-year high last week’

    Where are all these shacks coming from? Did they just get built? No that’s unpossible with Nancy Pelosi and all.

    ’25 percent of the homes currently listed for sale in San Francisco have undergone at least one price reduction’

    That’s a lot of sawin’ and a slashin’ given the shortage!

  4. Looking around this weekend in Folsom/El Dorado Hills, the price cuts to houses are still pretty small but the price cuts to raw land are getting serious. Many available lots in desirable areas are cutting their wishing prices by 20-25%+ just in the last few weeks. There’s still a long way to go because they are so overpriced, but at least its a good start.

    1. I’m in the Bay Area Carl, and we are seeing a bunch of price reductions. I’m even seeing flippers taking a loss on property that was purchased less than 12 months ago. I’m getting ready for the fire sale and distressed properties that will be coming up next year.

      1. Posted a flip here the other day on the central coast of California. flippers bought it last year and are losing money after the recent price cut

        1. Maybe Ben will run a weekend thread some time soon on local reports of price declines. It seems like there is more evidence by the day!

    2. I was hoping I would see a comment from you Carl at ground zero in Folsom. I was over there a couple weeks ago and started doing the local trulia search and saw a ton of the homes with arrows pointing down. I usually look back at the purchase price and for me to rationalize the prices, look at 2005-2013 prices as a level set for what “I” think the house is worth. To my amazement, most of these homes where purchased in this timeframe and where double +/- but slowly adjusting downwards. If the realtor God’s answer the flood of their prayers and the market doesn’t crash I may become your neighbor as even at the current overly priced market in Folsom, I will not pay the even more insane price to continue living in the Bay Area.

    1. Plea$ant $ummer $ands between the drink $tirrers toes is a fa$t fading memory, … 56 day$ ’till xma$ bonu$ di$tribution$!

      Chute$ & Ladder$!

    2. I wonder if dip will equal crash ? I’ll re-balance next year if it keeps this up. I think real estate around here is on its way down.. how far IDK ?

      We get to vote on Prop 10 rent control for the whole state including SFH.

      if that passes it can’t help but smoke some more speculators. I wonder has blackrock sold all their SFH rentals ? To pension funds no doubt looking for yield .

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