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More Sellers Start To Realize They Can’t Sell Their Distressed Properties At Market Rate

A report from Greenville News in South Carolina. “Denise Franklin, president of the Greater Greenville Association of Realtors said the local housing market is starting to ‘soften a little bit.’ Some fear the ongoing real-estate boom may lead to another housing-market collapse like the one that created a severe economic downturn in 2008. ‘The same thing could happen again,’ cautioned Butch Kirven, an appraiser who has served on County Council since 2005.”

“The situation can change quickly, said Kirven, recalling how in 2007 and 2008 ‘all of the sudden the market dropped.’ Back then, Kirven said, the county had to spend required deposits from developers to finish streets in subdivisions that were abandoned. Kirven is not the only person who is concerned that history could repeat itself. Margaret Williams, owner of Red Door Realty in Travelers Rest, also expressed misgivings. ‘I hate to sell houses to people knowing they’re paying way more than it is going to be worth if the market crashes,’ she said. ‘Then you are going to be upside down, and that happened back in 2007 and 2008.'”

“The slowest growth last year was in the northwest part of the county, where prices for some home lots in The Cliffs’ luxury communities dropped significantly.”

The Boston Globe in Massachusetts. “The Greater Boston housing market may finally be hitting a ceiling. ‘It feels like we’ve been in a nonstop sprint for much of the past year, but the market is now getting a chance to catch its breath,’ said association president Dino Confalone. ‘There’s been a bit of softening in demand over the past 8-to-10 weeks as some buyers have opted to take a break from the market due to affordability issues or to pursue summertime activities.'”

“It appears more homes are hitting the market in September. Active listings climbed 25 percent in the first two weeks of the month, the association said, while pending sales — units under contract but not yet closed — remain down. That could give buyers a bit more leverage as the fall market picks up speed. If anything, Confalone said, it’s sellers who need to be careful, mindful that the furious run-up in prices since the pandemic hit may be losing steam. ‘Today’s home buyers are well-versed on the market and not looking for a fixer-upper,’ he said. ‘Most have seen dozens of properties and can easily recognize one that’s overpriced.'”

The Washington Post. “Some data indicates that the housing market may be losing a bit more steam than just the typical end-of-summer slowdown in the D.C. region. The median sales price for a home in the D.C. region dropped 2.4 percent from July to August to $536,800, according to Bright MLS. Townhouse sales prices dropped 4 percent from July to August to a median sales price of $505,000.”

From Patch Washington. “A seasonal slowdown is beginning to emerge in Puget Sound’s red hot real estate market, with brokers already seeing customary dips in prices and activity heading into the fall. ‘We saw a dip in open house traffic overall, although some new listings were overwhelmed with traffic, depending on the price point. We are seeing homes stay on the market slightly longer and more instances of sellers overpricing their properties,’ said Frank Wilson, a broker at John L. Scott Real Estate.”

“‘In King County, median list prices dropped from $740,000 in July to $729,000 in August,’ said Matthew Gardner, chief economist at Windermere Real Estate. ‘That would explain why the median sales price also fell modestly month-over month.'”

From KOLO TV in Nevada. “It’s definitely not news to point out that buying a home in Reno is expensive, and now some potential buyers are tired of trying. ‘When it comes to buyer demand we are seeing some fatigue for sure.’ And that fatigue is now noticeable, with mortgage applications at an 18 month low. At Dickson Realty, Kayla Dalton says that with the median home price still close to $530,000 many have stopped looking.”

From KDVR in Colorado. “The Denver housing market has cooled in temperature from blinding supernova to merely red-hot lava. The Denver housing market has stalled at the record high numbers it has seen for the last year. Denver metro prices that had already been climbing reached their highest points in June, when the median sales price for a single family home hit $585,000. Since then, the market has cooled, if only from white-hot to red-hot. In August, the median price for a single family home in Denver metro counties was $565,000, which is $20,000 lower than June’s record-breaking high.”

“This all means the Denver metro is as unaffordable as it has ever been, minus the late spring and early summer months of 2021.”

From The Union in California. “Though it’s not the frenzy western Nevada County’s real estate industry saw over the past year amid the pandemic, the local market hasn’t exactly cooled off either. As is the case across the state, western Nevada County continues to search for signs of normalcy — whatever that means moving forward from the past 12-18 months — in the real estate market.”

“The number of homes listed for sale in western county had climbed back to 261 at the end of August, an increase from 236 in July and the highest number of homes on the market since November 2000.”

The Los Altos Town Crier in California. “Investors derailed by a financially troubled developer are beside themselves after losing millions of dollars last week on a Los Altos property with approved plans for a multifamily housing project. Santa Clara County Superior Court Judge Christopher G. Rudy awarded control of the 5150 El Camino Real site to Prometheus Real Estate Group for the relatively bargain price of $48 million – $12 million less than the $60 million initially offered by KB Home South Bay before retracting the offer prior to the Sept. 9 overbid hearing. No official reason for KB Home’s withdrawal was given. The hearing attracted no other bidders, leaving Prometheus, which purchased the loan on the property, as the new owner.”

“The 3.8-acre site, currently an office development, comes with preapproved plans for a 196-unit condominium and townhouse complex. The Los Altos City Council approved the project in 2019. The effect of the Prometheus sale left nothing for the original investors. ‘Mad, angry, furious, frustrated with the legal system,’ said one 5150 investor after last week’s hearing. ‘We’re wiped out – the liens are stripped off of it and we don’t have a judgment,’ said another.”

“The court-appointed receiver, Kevin Singer, said the property was properly marketed and there was ample opportunity for buyers to come forward. ‘I believe this property has been very well exposed to the market,’ Singer said, ‘There has not been a lack of effort by this court – the market has spoken to us and we don’t have an overbidder today except for the plaintiff who’s interested in purchasing the property.'”

From My 13 News in Florida. “Foreclosure filing rates are 60% higher than at this point last year. In the Orlando metro area, the change isn’t as stark: Foreclosures are up 17.3% from last year, according to Attom. For local real estate agent Chris Allredge and his colleagues, the foreclosure moratorium halted lots of business over the last year and a half. ‘The market shut down for us as property values were skyrocketing into this year,’ Allredge said. ‘Sellers were very reluctant to give up properties that were distressed, because they thought they could make more from them … we were having a huge problem finding inventory to sell.'”

“Since about June, though, Allredge said business is definitely starting to pick up, as more sellers start to realize they can’t sell their distressed properties at market rate. Right now, Attom data shows Florida has more ‘zombie properties’ — homes abandoned by their owners before the foreclosure process can begin — than almost any other state, aside from New York and Ohio.”

The Real Deal on New York. “A 79th-floor, five-bedroom apartment at 432 Park Avenue was officially listed for sale on Monday for $135 million, or about $16,760 per square foot, after a fruitless nine-month search for an off-market buyer. The owners, an unidentified American couple that collects Asian art, hired Noel Berk of Engel & Völkers Mercedes Berk in January to find a buyer. Berk, who at the time said the full-floor unit was too unique to put a price on it, blamed pandemic travel limits for the lack of off-market success.”

“‘The owners of the apartment are ready to sell,’ said Berk. ‘We listed it publicly to be able to get it out to a much broader audience instead of one-on-one introductions.'”

“The couple, which bought the apartment for $59 million in 2016, spent three years and millions of dollars on an elaborate renovation of the raw space. A full-floor unit on the 82nd floor which was listed last August for $90 million has chopped its asking price to $79 million in April, a few months after The New York Times reported on design and construction defects at the 1,400-foot tower.”

“In August, a 2,630-square-foot unit on the 80th floor sold for $19.1 million, or $7,262 per foot. The seller was a company linked to missing Chinese national Whitney Duan, who reportedly did business with relatives of China’s previous prime minister Wen Jiabao. Duan surfaced last week, contacting her ex-husband to ask him to stop the publishing of a book he wrote about her disappearance. Another unit linked to Duan on the 72nd floor is in the midst of a foreclosure proceeding.”

“In January, a full-floor unit on the 34th floor was sold by the developers CIM Group and Macklowe Properties for just under $19.8 million, or $2,448 a foot, property records show. That’s down almost 30 percent from its asking price of $28 million.”

This Post Has 75 Comments
    1. “Mad, angry, furious, frustrated…We’re wiped out’”

      5 stages of grief.
      Stage 1 – Dental
      Stage 2 – Anger

      Here we go again. The Fed is a serial arsonist in charge of the U.S. economy. Don’t expect different outcomes.

    2. ‘Mad, angry, furious, frustrated…We’re wiped out’

      Save enough rage-energy to stamp your little feet!

  1. ‘If anything, Confalone said, it’s sellers who need to be careful, mindful that the furious run-up in prices since the pandemic hit may be losing steam. ‘Today’s home buyers are well-versed on the market and not looking for a fixer-upper’

    That’s right Dino, you tell those greedy sellers they better start sawin and a slashin, pronto!

    1. And, they can’t get market value for their distressed properties! Why should they? And if they can’t sell at market then it’s not market.

  2. ‘And that fatigue is now noticeable, with mortgage applications at an 18 month low. At Dickson Realty, Kayla Dalton says that with the median home price still close to $530,000 many have stopped looking’

    Following the sh$tholes that are truly fooked theme, just how many people in Reno can afford 500k?

    1. Moved here to Reno Easter 2020, right at the start of the WuFlu madness. Rents were already skyrocketing at that time, and have continued apace. There is a massive influx of Commiefornia locusts driving real estate thru the roof. Amazingly, I have young coworkers who are longtime natives, and they too are buying. It’s completely nuts!

  3. ‘a full-floor unit on the 34th floor was sold by the developers CIM Group and Macklowe Properties for just under $19.8 million, or $2,448 a foot, property records show. That’s down almost 30 percent from its asking price’

    Good luck with that $16k/per square foot airbox Noel. Safe deposit box in the sky!

  4. ‘more sellers start to realize they can’t sell their distressed properties at market rate’

    So what did people expect? If it’s distressed, vultures are looking to schlong you guys. How else can they make money?

    I was thinking about this forbearance issue. The REIC has been saying, “oh those million or two shacks won’t make a dent in the red hotcakes!” But we’ve seen 1.5 million shacks SHAZAAM! pop up from regular shack gamblers in the past 17 weeks, says UHS.com.

    A boom precedes a bust. These idiots ginned up their frenzy, now enjoy the crater.

      1. Not really… Not at all. Houses aren’t transacted by square feet.

        Napa, CA Housing Prices Crater 11% YOY As Northern California Housing Prices Drop Like A Rock

        https://www.movoto.com/napa-ca/market-trends/

        As one national broker observed, “Sellers are stamping their feet in a fit of rage over price declines…… and it’s hilarious.”

      2. Agreed, the real pain is only seen when ppsfis is slashed. When I sold I got exactly what the ppsf was averaging in market.

  5. Well, to all my fellow California’s, ill be going scorched earth on Marxism from here on out in my classroom. At least 200 9-12 grade kids will learn the tactics used by these evil reprobate.

    I’m covered under my districts contract to use whatever supplemental resources I want and I’m more competent than most of my half-wit colleagues.

    But its still a drop in the bucket.

    I don’t know how else to fight, so I’ll use the words of people much more insightful and experienced than myself. If you have any recommendations, please send them.to educatedandfree@protonmail.com.

    1. easy the most controversial position to take today is to honor MLK and apply content of character aka behavior to all people not just a chosen few. See how much trouble you can cause by stating if floyd paid with a real $20 no police would have been called…..

      1. That’s a brilliant observation. George Floyd pays with legit money and is left to OD in peace by himself.

    2. I’m getting involved as a parent volunteer for our district’s special education department. After some time building relationships with the administration, staff and parents, I would like to run for school board.

      1. Lol. 66% of California women didn’t vote. 7.5 million Mexican women didn’t vote in an off-date recall election.

        But a handful of ppl voted for them.

  6. I would imagine that months of wildfire smoke in the upper Sierra-Nevada range is beginning to wear-down homeowners in Nevada County, California as it’s becoming a regular feature of summer.

    1. They have elevated ballot box stuffing to an art form.

      As the saying goes, you can vote your way into communism, but you have to shoot your way out.

      1. “They have elevated ballot box stuffing to an art form.”

        I’d be interested in any ballot canvassing efforts.

      2. “They have elevated ballot box stuffing to an art form.”

        Repubs will be in rude awakening about the midterm. Dems got this…again!

          1. And it’s only 10 to 15 house seats. They had no problems ‘fixing’ 10 to 12 states in 2020. Now we’re talking about only 15 house seats at most. Easy peasy.

          2. While everyone else is quoting 1984, what the Dems are doing bears far more resemblance to the tactics in Animal Farm.

            For those who haven’t read it, farm animals stage a revolt and expel Farmer Jones. Eventually the pigs take over the farm, taking more and more of the goods and the power from the working class animals. Each time the pigs issue a new edict taking more power and stuff, they send out the propaganda pig to say “Oh, but the pigs need all the stuff to manage farm. If they don’t have absolute power, then Farmer Jones might come back. You don’t want Farmer Jones to come back, do you?”

            This always stopped any questions from the working class animals. Even though the pigs were far worse, the animals still believed that anything was better than Jones. That one sentence — you don’t want Farmer Jones to come back, do you — was enough to silence any dissent.

            This is exactly how Gavin got his loonies to vote for him, and how the Dems will get more turnout, more votes, and more *ahem* cooperation on election night. “You don’t want Trump to come back, do you?” I’m sure it will continue even after Trump is dead.

    2. While both had no political experience Elder is virtually unknown compared to Schwarzenegger, and after today Elder will become a distant memory.

    3. I dropped off our ballots yesterday morning. My ballot is still showing as outbound on Ballottrax. My husband’s has to be as well.
      I suspect most people voting for the recall voted yesterday.

      There’s already CNN footage circulating on social media showing a loss of 351,709 YES votes.

    4. The Democrats – a criminal enterprise masquerading as a political party – have no greater priority than subverting law enforcement and the judiciary so they can carry out their rackets, to include electoral fraud and shaking down the productive, with impunity. While Soros-installed DAs are destroying the rule of law at the judiciary level, Diversity hire gang members are being recruited as law enforcement officers as the nexus between Democrat politicos and criminal syndicates starts to more closely resemble Mexico than the late, great America.

      ‘Executioners,’ ‘Reapers,’ and ‘Banditos’: Gangs of Sheriff’s Deputies Are Wreaking Havoc in L.A.

      https://www.rollingstone.com/politics/politics-news/los-angeles-sheriffs-department-gangs-rand-report-1225982/

  7. Back to 2000 levels?

    We’re getting there!!!

    “The number of homes listed for sale in western county had climbed back to 261 at the end of August, an increase from 236 in July and the highest number of homes on the market since November 2000.”

  8. Yesterday I did a search on Zillow for Zillow-owned houses in/around my zip. I looked about about a dozen and couldn’t find a single one without a reduction (or two) in the price history that brought it below the stonk price Zillow paid in June or July.

    Eventually they are going to have report the losses on these flips. These corporate SFH buyers are all big, bad, scary players but it seems their wicked plans were a couple years too late. What would be terrifying would be if they still have cash and desire at the bottom.

  9. Sen. @RandPaul: “The guy the Biden administration droned: was he an aid worker or an ISIS-K operative?”

    Sec. Blinken: “I don’t know because we’re reviewing it.”

    Sen. Paul: “You’d think you’d kind of know before you off somebody with a predator drone.”

    Watch: Rand Paul Grills Sec. Blinken: “You’d Think You’d Know Before You Off Someone With A Predator Drone” | ZeroHedge
    https://www.zerohedge.com/political/watch-rand-paul-grill-secretary-blinken-youd-think-youd-know-you-someone-predator-drone?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

  10. TRENDING NEWSLocal Media Seeks Unvaccinated Deaths — Instead Receives Thousands of Vaccine Horror Stories .

    Published 3 hours ago on September 15, 2021
    By Justin Malonson

    “After the vaccines were available to everyone, did you lose an unvaccinated loved one to COVID-19? If you’re willing to share your family’s story, please DM us your contact information. We may reach out for a story we’re working on.”

    However, instead of tales of the unvaccinated, the news station’s Facebook post was flooded by thousands of people desperate to get their vaccine injury stories heard in a time of hardcore censorship.

    The stories were similar to that of Texas resident Ernest Ramirez, who recently lost his son after a serious adverse reaction to the vaccine.

    Ernest Ramirez
    @rgvrunner01
    My good byes to my Baby Boy

    Here are just some of the messages screen-capped from WXYZ‘s Facebook post, where there are over 177,000 comments:

    https://federalinquirer.com/local-media-seeks-unvaccinated-deaths-instead-receives-thousands-of-vaccine-horror-stories/

  11. “It’s definitely not news to point out that buying a home in Reno is expensive.”

    And STUPID.

    When this fiasco shakes out, there’s going to be 3 groups of Americans:
    (1.) Those who realize gambling’s no longer a good idea.
    (2.) Those who want to gamble, but can’t due to no more stimmy $$$.
    (3.) Those who never gambled in the first place.

      1. You supply the tight-bodied young ladies in leotards, and we’ll supply the bruise doctors, massage therapists and medications. We’re professionals.

  12. **”Judge Christopher G. Rudy awarded control of the 5150 El Camino Real site to Prometheus Real Estate Group for the relatively bargain price of $48 million”

    (wasn’t a total loss: the broke investors got a Columbia House coupon 12-CD’s for a penny so they could order a Van Hagar 5150 album.)

    1. Gang’em together…. daisy chain em off the receiver hitch. I bet I could yank a herd of them with just the dually.

    2. Almost 350,000 votes being flipped on live TV is not evidence of voter fraud. I learned that last January in the Senate runoff elections in Georgia.

  13. The Financial Times
    Chinese politics & policy
    Financial blogger crackdown leaves China investors scrabbling for data
    Websites and social media accounts are scrubbed making it harder to assess state of economy
    FT reporters yesterday

    China has launched a crackdown on financial blogs and social media, a move that risks exacerbating the difficulty of obtaining reliable data about the world’s second-biggest economy.

    The restrictions were implemented as fissures widened in the top echelons of Wall Street over whether investing in China was a smart bet.

    A snowballing policy overhaul has caught seasoned China investors off guard, spooked markets and sparked questions over which sector would be targeted by Beijing next.

    Last month the Cyberspace Administration of China embarked on a “special rectification” campaign. The internet regulator is clamping down on market sceptics and those who voice pessimistic opinions about the Chinese economy — as well as misinformation and malfeasance radiating from financial news services and social media accounts.

    China-focused economists, analysts and academics acknowledged the problems caused by uninformed online commentary and rampant fraudulent activity. But they warned that over-reach from the campaign would also silence valuable voices that diverged from the official narratives promulgated by Beijing.

    One veteran analyst of China’s markets, who asked not to be named, said a lack of information about the country was “absolutely” creating an environment in which miscalculation and misjudgement would become more prevalent.

    “I think it’s a huge risk . . .

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