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You Have Buyers Saying Wow, There’s More Listings

It’s Friday desk clearing time for this blogger. “Inventory in Lane County, excluding Florence, was up and median prices were down in October, according to the Regional MLS, when compared to earlier this year. The sales median price was $290,000, $9,000 less than the record-high set in August. Matthew Gardner, chief economist of Windermere Real Estate, said a lot of sellers believe the market is peaking and want to cash out over concerns about rising mortgage rates, housing affordability and a potential real estate bubble.”

“‘It’s really a situation whereby home sellers need to understand the fact that we’re getting back to historic averages, but at the same time you have home buyers saying, ‘Wow, there’s more listings,’ Gardner said.”

“Amy Shocket, Dickson Realtor in Sparks, calculated 49 percent of our active inventory was reduced in price in part of the third quarter. I believe this is an important trend because we haven’t seen price reductions for several years. Las Vegas, Los Angeles, Sacramento, San Diego and San Francisco, all feeder markets to our area, have made the top 54 cities predicted to have housing crashes in the short future. That will affect our market.”

“Here’s another sign that the housing market in the Seattle area is rapidly cooling off: The portion of home sellers who dropped their list price hit a record high of 47 percent in October. During the same month a year ago just 33 percent of listings had a price drop. ‘The market is in a bit of a stalemate,’ explained local Redfin listing agent Jessie Culbert.”

“Real estate markets across the country may be showing signs of softening, but Calgary home stager Monique Shaw says her business has been booming. Shaw says a downturn in the Canadian oil-patch over the past three years has left many landlords scrambling to offload their rentals when tenants lost their jobs. ‘When you have an empty property, that’s all it appears to be — empty and a property,’ she said.”

“Georgia and James purchased their first home a year ago and are now looking to move up the property ladder. They are worried about how easily they will be able to sell their current home and whether they will be able to move into the house they want within budget.”

“Georgia told This is Money: ‘It is definitely the case that it is harder to buy a second property now. We thought that we might have to rent our property to someone and rent out another property for ourselves, if we can’t sell. We don’t want to sell our house for less than its worth.'”

“Potential homebuyers priced out of Hong Kong’s stratospheric property market may now feel more hopeful as housing prices finally begin to cool after a bullish stampede lasting more than two years. In contrast to the past two years when new and existing flats would normally be snapped up, agents say residential property has switched to a buyer’s market, with more room to negotiate prices.”

“‘The past weekends have been pretty quiet with fewer buyers shopping for flats, so the sellers were more willing to cut prices, some even by more than 5 percent’ said Hong Kong Property Service CEO Richard Lee. ‘We expect more price cuts going forward and by a larger extent.'”

“Home buyers are gaining the upper hand as the downturn in Sydney and Melbourne deepens, forcing vendors to readjust their price expectations. Many vendors are still desperately holding out hope that they can achieve prices not seen since the market was at its peak in mid-2017, said Real Estate Buyers Agents Association president Rich Harvey.”

“‘There’s always a lag affect,’ he said. ‘Vendors that need or want to sell are meeting the market, those that are holding out for 2017 prices are going to be waiting.'”

“After seeking bids for a Blaine County School District property near downtown Hailey, the district’s board of trustees took it off the market. The group voted 4-1 not to sell the property, rejecting a $350,000 offer to buy the lot. The offer was $350,000 lower than the price the district paid 10 years ago, at the height of the housing bubble.”

“The board was reluctant to realize a $350,000 loss on the property; only Board Chair Rob Clayton voted to accept the bid. ‘It was bought at peak valuation,’ he said. ‘We got an offer above the appraisal. We’re beating the market, as it stands now. Sometimes, you need to take a loss to move a business ahead.'”

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This Post Has 36 Comments

  2. ‘Home buyers are gaining the upper hand as the downturn in Sydney and Melbourne deepens, forcing vendors to readjust their price expectations. Many vendors are still desperately holding out hope that they can achieve prices not seen since the market was at its peak in mid-2017’

    Remember oh so long ago? It was just a little over a year ago. Huge crowds paying hundreds of thousands over bids on decrepit shacks. A bursting bubble sure changes fast, eh? Now they’re desperate, in denial, sinking deeper every day. Coming your way California, Dallas, Denver and Seattle.

      1. It looked that way for a while. But the next phase of them becoming a top world power will require some serious changes they may not be able to make.

    1. The market decides what it’s worth, not the seller. Greedhead wish prices are irrelevant in a bursting housing bubble.

    1. Redfin data… well I don’t know about you but I am pretty sure a business that is buying and selling a product such as homes would probably put as much spin / fluff as they can, for as long as they can, if it will help move their product. I call BS in their “data”

  6. We don’t want to sell our house for less than its worth.’

    Hmm… that’s not how this works. When it sells will you only know for sure what it’s “worth.” So get slashin’ and don’t be stingy.

  7. What is most amazing is the rate the news and various comments from pundits is changing. First it was us “nuts” here on the blog and almost everyone else whose outlook was rosey. Even Yun has made some cautionary comments. I clearly remember in about 2007 the lengthy “standoff” period where sales dwindled but listings and price reductions only increased slowly. Folks had no prior reference at that time. My guess is that so many remember the 2007 through 2011 wreakage that attitudes and actions are quick to return. What is your guess?

    1. What is your guess?

      Same…faster. But I also think that the smarter ones will remember what happened when the Fed stepped in and will try to game the same thing again.

    2. I think that applies to Realtors as well. They know they won’t eat until homes sell and they now know homes won’t sell until prices get cut. I think Yun and Young are signalling to Realtors that price cuts are ok to talk about. “There will always be winners and losers” per Yun.

      I’m going to buy in 2020 so I’m at least hoping it happens fast.

      1. With intere$t rate$ ri$ing, can one predict winner$ from lo$ers? … (just a$king)

        “There will always be winner$ and loser$”

        The total debt$ $houldered by American$ has hit another record high, ri$ing to $13.5 trillion$ in the last quarter.

        BUSINE$$ NEWS NOVEMBER 16, 2018
        $tudent delinquencie$ up as U.$. hou$ehold debt hit$ another record
        Reuters / Jonathan Spicer

    1. Oh come on MW, the active inventory in that link is all of two houses. A sample size of two! I think you can do better.

        1. Are the pics with the notations done by you? I like the amount of clarity and instruction provided. 👍

  10. By the way, the US Treasury just extended its program tracking all cash purchases through shell companies into 5 new cities including Seattle. It also lowered the threshold to $300,000. Since it launch, cash sales have dropped by 70% across the *entire* US. This will only further bring down prices from here on out now that criminals can’t just launder their money through US real estate at will.

      1. Well, seems there’$ plenty of oppoortunitie$ for art CONnisuier’$ to $wap “The $cream” (Der Schrei der Natur) for a outdoor pizza oven equipped private e$tate man$ion.

        “The new order covers purcha$es made, at least in part, using ca$h or a cashier’$ check, certified check$, traveler’$ check, per$onal check, busine$$ check, money order$, fund$ transfer or virtual currencie$.”

      2. About time! Now if they can just go back and seize all the previous illegally purchased homes. They could make a ton of money by selling it back to us at a huge discount. Win win

  11. Las Vegas, Los Angeles, Sacramento, San Diego and San Francisco, all feeder markets to our area, have made the top 54 cities predicted to have housing crashes in the short future. That will affect our market.”

    The bursting housing bubble will affect every market, everywhere. No, it’s not different “here” regardless of what your UHS may claim. Eee-bola has spread from coast to coast and everywhere in between.

    1. Whatcha expect? Is it: man … verses … machine? or, man + machine!

      From “In the Loop”; “still hangin’ around Chad?”

  13. The group voted 4-1 not to sell the property, rejecting a $350,000 offer to buy the lot. The offer was $350,000 lower than the price the district paid 10 years ago, at the height of the housing bubble.”

    That offer was as good as it gets, greedheads. Now you’re going to have to swallow a much bigger loss down the road, while the knife catcher who had his offer rejected will be thanking his lucky stars as the market continues to crater.

    1. They had “a.lot” in their hand$ fer 10 year$ & failed to make a profit … reckon pitchfork$ are in short supply in Hailey, they must lack a “True Value” hardware$ store.

    1. $13.5 trillion

      That’s north of $100K per household, or 2 x gross income. Call it 3 x take home income. This “average” family is insolvent. Just to stop borrowing in the future would require a drastic cut in discretionary spending. Eliminating food and clothing wouldn’t be enough. What would 30 or 50 million bankruptcies look like?

      2. It may not be quite so bad, as I am guessing that “total debt” narrowly focuses on the liabilities side of the household balance sheet. For instance, my household has some debt but it is amply covered by our savings. Unless you consider the value of collateral, total debt may be meaningless in isolation.

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