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Get It Sold As Soon As Possible, Because The Next Seller May Have To Sell For Less

A report from the Marin Independent Journal in California. “California Association of Realtors chief economist Leslie Appleton-Young said the country is entering the 10th year of positive economic growth, but the pace of growth is decelerating. ‘A shift is afoot,’ said Appleton-Young. ‘ The question is, how long can the economy be strong if housing is not?'”

“Quoting C.A.R. CEO Joel Singer, she said, ‘At some point a supply problem becomes a demand problem.'”

“With its strong economy and expansion of its tech sector, Appleton-Young believes the Bay Area is the most solid in weathering the changes. ‘Silicon Valley is the hub of economic growth. You are it!’ she exclaimed. ‘Prices are not going down, they are just rising slowly. We are in a slow squeeze, but it’s not a cataclysmic. I don’t see the economy faltering.'”

“Summarizing the state of the market, Appleton-Young told Realtors, ‘We’re going from great to good. It’s a change you have to talk about with consumers.’ Expect a 7 percent pullback in sales next year, she said, noting Realtors need to counsel and educate consumers about the market. Since interest rates are rising, it is a good time to buy and it is a good time to sell.”

“‘Sellers need to be straight up with their price and not play games,’ said Appleton-Young.”

The Bay Area Newsgroup in California. “While the Federal Reserve rate hikes have rattled stock markets, that may indirectly benefit home buyers in a way by helping to tamp down rates for a loan. ‘It’s nothing but good news for home buyers — assuming they didn’t lose their down payment because the market fell,’ said Dick Lepre, senior loan adviser at RPM Mortgage in Alamo.”

“Home sales, however, remained down in the West, where Lawrence Yun, the National Association of Realtors’ chief economist, said ‘consumers have expressed the weakest sentiment about home buying, largely due to lack of affordable housing inventory.'”

“Leslie Appleton-Young, chief economist for the California Association of Realtors, said the general economic uncertainty has given buyers pause. ‘At some point earlier this year — it may have been in reaction to the tax reforms, tariffs — people just started to go on the sidelines, buyers started to go on more of a wait-and-see attitude, even at the more entry level of the market,’ she said.”

“As Rick Smith, past president of the Santa Clara County Association of Realtors, put it, ‘they don’t want to be that guy buying a house at the high price.'”

“But with things so uncertain, agents are advising both buyers and sellers not to wait. Properties are sitting on the market longer, buyers are finding more sellers willing to negotiate on price. ‘My current clients who are sellers, my advice to them is put it on the market and get it sold as soon as possible, because the next seller may have to sell property for less,’ Smith said.”

“John Espinosa, agent with Heritage Realty Group in Morgan Hill, said sellers’ willingness to negotiate prices has had a bigger effect on his buyers than recent swings in mortgage rates. ‘Rates are still good, there are fewer buyers out shopping now, and sellers are willing to negotiate,’ Espinosa said. ‘Buyers are getting some pretty good deals now.'”

From NBC 16 in Oregon. “Higher interest rates from the fed and some other troubling signs have given the Lane County housing market a few jitters. But the experts say not to panic. Realty experts say the longer trend numbers carry more weight, than one month changes. And for home sellers?”

“‘They are still in the driver seat but you have to do smart real estate,’ said Marcia Edwards, a real estate broker in Eugene. ‘Pricing is going to become strategic.’ Edwards says it’s just taking a little longer for some sales to happen.”

“‘A decrease is not necessarily bad,’ said Edwards. ‘In fact, it can be very good because what we’re looking at is a sustainable marketplace. We’ve got in every transaction, we have a buyer and a seller.'”

“The drop was from $290,000 in October, to just over $277,000.”

“What about those recent interest rate hikes from the fed? ‘They’ve been a threat but they haven’t had a big impact,’ said Edwards. ‘People that are refinancing have settled into their spot.'”

“Looking forward, Edwards says the still super-tight housing inventory is a big problem going in 2019. The total housing stock in Lane County would sell out in just over two months at the current sales pace.”

This Post Has 43 Comments
  1. ‘the still super-tight housing inventory is a big problem going in 2019. The total housing stock in Lane County would sell out in just over two months at the current sales pace’

    Prices are falling with a 60 day inventory? Sure.

  2. ‘Silicon Valley is the hub of economic growth. You are it!’ she exclaimed. ‘Prices are not going down, they are just rising slowly. We are in a slow squeeze, but it’s not a cataclysmic. I don’t see the economy faltering.’

    When this woman starts blowing smoke up your ass, buckle up.

    1. Yun needs to go let her know the jig is up. At least he is willing to (now) admit we are in negative territory. This lady is still trying to drag out the idea of “to the moon” RE, just at a “slower” pace. I’m gonna stock up on tomatoes and attend her next speech

    1. They need to regroup & use hemp, it’$ launderable & legal too! … “Bidne$$ I$ Bidne$$!” … MAGA: Make America Green Again!

  3. “Summarizing the state of the market, Appleton-Young told Realtors, ‘We’re going from great to good. It’s a change you have to talk about with consumers.’ Expect a 7 percent pullback in sales next year, she said, noting Realtors need to counsel and educate consumers about the market. Since interest rates are rising, it is a good time to buy and it is a good time to sell.”

    Basically it’s a good time to hurry the f up and buy or sell so the realtors can eat and what kind of education is a realtor going to give? How to make ramen without overcooking the noodles?

    1. Expect a 7 percent pullback in sales next year, she said, noting Realtors need to counsel and educate consumers about the market.

      The hallmark of these REIC touts and shills is injecting a false precision into their confident forecasts for the coming year, i.e. a “7% pullback.” Any Knife Catcher who would put their trust in a realtor to “counsel and educate them,” or accept glib realtor assurances of only modest shack price drops, should first compare notes with the FBs who trusted “Suzanne’s research” to guide their purchasing decisions during Housing Bubbles 1.0 and 2.0, before the market imploded under the weight of its own lending and appraisal fraud, and unsustainable valuations.

    1. What ‘portfolio’ do you mean? I dumped my stocks in 2007. Decided I could not longer stomach dealing with organized crime.

    2. Now Mr. Bear, quit $pooking the kids! … (-4000) will soon bee forgotten as equitie$ prepare to to trudge on to new long term high$ over the next 10 year$ … $tay inve$ted!

        1. I feel I’m positioned. About 85% cash, and the rest in JNUG, AGQ, USLV and a lone tech stock (TEAM). Was in FAZ but sold my last on the latest move up @13.50. Now it is over 15 and I’m hoping to get back in on the next dow pump. Thing is I’ve been burned on all of the above pretty badly over the past 10 years and the PTB seem to have infinite ammo. But I don’t want to miss out in case this time really IS the collapse. Other stocks/ETFs I’m considering: SRS, DRV, SKF

  4. ‘A shift is afoot,’ said Appleton-Young. ‘ The question is, how long can the economy be strong if housing is not?’”

    The Fed’s Ponzi markets and asset bubbles were never a byproduct of a “strong economy.” They purely and simply were the result of mind-boggling speculative excesses that resulted from the Fed and central banks flooding the global financial system with trillions in printing-press fiat currency, and the removal of almost all curbs to loose lending and reckless speculation.

    And now the long-deferred financial reckoning day, along with true price discovery, is showing up in all of its terrible glory to lay waste to the chimera and fraud of the Bernanke-Yellen “recovery” and “boom.”

    Glory, glory Hallelujah.

    1. ” …along with true price di$covery”

      There’$ a price to be paid for no$talgia … $earch: VW crewcab pickup

      Anywho, higher intere$t rate$ works best on a real.e$tate oil fire … (imhto)

      Glory, glory Hallelujah

    2. “how long can the economy be strong if housing is not?”

      She’s an idiot. Housing is not the cause of a stronger economy.

  5. “Quoting C.A.R. CEO Joel Singer, she said, ‘At some point a supply problem becomes a demand problem.’”

    I love how these REIC shills and touts quote each other as authorities on the housing market, even with their abysmal track record when it comes to economic forecasting or describing the true state of affairs.

    My dawg will walk on his hind legs before LAY or any other NAR shill quotes any contrarians, i.e. credible sources of information, i.e. Ben Jones & the Brain Trust here at the HBB.

  6. I just got an email and looked the listing up:

    https://www.zillow.com/homedetails/1945-Arcadia-Ct-Bullhead-City-AZ-86442/8352723_zpid/

    1945 Arcadia Ct
    Bullhead City, AZ 86442
    3 beds 2 baths 1,176 sqft
    For Sale
    $139,900
    Zestimate®: $135,554

    Date Event Price $/sqft Source
    7/7/2017 Sold $122,000 -12.8% $104 Public Record
    5/18/2017 Listing removed $139,900 — $119
    5/4/2017 Price change $139,900 -3.5% $119
    3/28/2017 Listed for sale $144,900 +70.5% $123
    2/8/2002 Sold $85,000 — $72 Public Record

    Chances are public record means foreclosure.

    ‘PARTIALLY REMODELED! NEW CARPET, PAINT, TILE, APPLIANCES, SECURITY SYSTEM, LIGHTING AND PLUMBING FIXTURES!!’

    Lender slapped some paint on it.

    ‘THIS HOME IS MOVE IN READY’

    And how! It’s been move in ready for almost a year and a half.

    1. Bullhead City, AZ

      Just another Californian’$ boat $torage facility + airbnb rental + “bidne$$” tax deduction claim = accountant’$ breakfa$t burrito

    1. Having voted for him, this is where I strongly diverge from Trump. I am thrilled with the rate hikes and wish they would raise 4+ more times next year. If Trump removes Powell and keeps banging on the low rate drum, trying to blow bubbles, I’ll not vote for him again.

      1. I concur with this statement. I did not vote for Trump and have significant differences with him on many, but not all, issues. However, Powell raising rates is long overdue. DJT campaigned against the Obama/Yellen/Bernanke funny money, so it is a bit rich to see wanting to avoid taking away the punch bowl. DJT raising rates and putting pressure on China might have made a non-Trump voter vote for his 2nd term, so I’ll be watching closely. Hopefully he is just blowing off steam.

      2. I believe Trump is just highlighting the direct correlation between the fed’s out of control money printing and the false prosperity on wall street. He can play this a number of ways, e.g., why did the shylocks keep rates so low for so long for the previous prez? They should have been raising rates starting around 2012. So why doesnt he get similar treatment? He needs to use this to destroy the fed and institute honest money, something outside of the control of the lying sociopaths that compose most of government.

    1. We (taxpayers) ride to the rescue, that’s what. Didn’t banks set up this plan soon after the bailouts, so that next time SHTF (ie, now) they are guaranteed to be made whole?

    1. “Prices Are Going Lower For Many Years”

      It almost seems logical for sellers to try to sell right now, rather than wait out several years of post-bubble home price deflation and sell for a lot less.

      1. What was her quote for sellers? Need a pricing” Strategy ” sounds complex.

        How about slash and burn if you wish to turn.

        Also love the reference to how now is a great time to sell or buy. Translation: I need commissions now before sales fall off the cliff.

        There actually are a fair number of good, reputable agents out there. Yun is actually speaking pretty straight lately. However this lady reinforces all the bad stereotypes for agents. I just imagine the clown face with pink wig, big red plastic nose, and purple lipstick with over exaggerated hand movements when I hear comments like her’s.

        It’s useless really. Kind of like going to a beach and holding up a piece of plywood out in the water hoping to hold back the tide. It does have entertainment value for us however. Kind of like a commedy show.

  7. I live in Marin County, CA, and my favorite Leslie Appleton-Young quote from Bubble 1.0 was that this was “God’s Country” and prices would never go down 30% “in her lifetime”. Well, prices did indeed go down and close to that mark as well, took longer for the bust to hit here, but it did indeed.

    Why the press continues to quote her is beyond beyond, and of course no one can be bothered to check how accurate she was the last time around.

    1. God’s Country eventually succumbed to God’s will.

      Didn’t know she was some kind of real estate celebrity. They could do better.

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