Price Reductions A Symptom Of Overly Optimistic Sellers
A report from the Star Tribune in Minnesota. “With entry-level house listings still hovering near all-time lows, prices across the Twin Cities metro broke another record last month. But relief is on the way: More houses are hitting the market, competition is softening ever so slightly and price gains are moderating.”
“During August there were 7,814 new house listings across the metro, a 7.6-percent increase over last year and the biggest gain in at least three years, according to a monthly sales report from the Minneapolis Area Association of Realtors. At the same time, there were just 5,663 pending sales, a 2.9-percent decline from last year.”
“‘Our market reports confirm what most agents already sense,’ said Kath Hammerseng, MAAR president. ‘The market is starting to shift toward balance.'”
“Sellers of the most affordable listings are still getting close to, or more than, their asking price, while those selling the most expensive listings are offering the biggest discounts. Hammerseng said that the price reductions being offered this fall could simply be a symptom of overly optimistic sellers who priced their houses too high this spring.”
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‘those selling the most expensive listings are offering the biggest discounts. Hammerseng said that the price reductions being offered this fall…’
Eeee-bola Minneapolis!
Actually I know someone up there that was looking at new shacks a week ago and a builder offered up a huge discount without being asked.
Monterey, CA Housing Prices Crater 12% YOY As Unemployment Continues To Ravage California
https://www.movoto.com/monterey-ca/market-trends/
30 year treasuries hit a 4 year high today. Boom goes the dynamite!
“Sellers of the most affordable listings are still getting close to, or more than, their asking price……”
An old UHS trick – drop the listing price in the AM then at lunchtime it goes pending. This way the Expert and Analyst can say “My listings get 99 percent of their asking price”! Yeah, after adjustment, not the original price.
it should be easy to sort out with the data.
If there was a price listing reduction, take the sell price against either the original price (or the listing price from 30 days ago). Calculate the % of asking price.
Not sure if this has been posted yet but Australia is definitely starting to freak out.
https://youtu.be/smPR0s2W-Ck
I have to say, I got a chuckle.
Hank Paulson on executive compensation
Paulson says that the government couldn’t force banks to take taxpayer-funded capital in October 2008 so it had to make the terms attractive, which is why he didn’t put limits on bankers’ bonuses.
https://www.brookings.edu/blog/up-front/2018/09/19/reflections-by-bernanke-geithner-and-paulson
“No baby, you’re really not well, you need to take your medicine.”
“More money? Aw heck ma, I don’t wanna, I’m sick of getting so much money.”
Part of the whole, “They didn’t really think they needed money, they didn’t know how sick they were, but we as concerned guardians, had to force feed them from the public treasury. Because while we couldn’t see the greatest financial event since the Great Depression, we had greater knowledge and insight into their operations than they did.”
Moorpark, CA Housing Prices Crater 9% YOY As Imploding China Economy Batters West Coast
https://www.movoto.com/moorpark-ca/market-trends/
The spread between inventory and pending sales makes a nice metric
If it adds up to any number over 10%
U r BONED