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Prices For Detached Homes, Townhouses And Condos Keep Dropping Every Single Month

This Post Has 6 Comments
  1. From the first 2 minute video:

    It’s Officially a BUYERS Market | Las Vegas Housing Market
    Kayla Delargy
    Premiered Nov 3, 2022
    A buyers market on its way here in the Las Vegas housing market! Now might be a great time to buy.

    (I am not saying you’re going to miss an opportunity by not, if you’re not ready – do not buy)

    But if you’re ready, it’s officially a buyers market! So what does that mean for you?

    Concessions… Concessions… Concessions! Sellers are finally giving $$ towards buyers closing costs, and even funds towards helping buy down the buyers loan interest rate!

    If you’re ready, call me today lets see what concessions we can get the seller to pay for you

    The second 3:43 video:

    Palo Alto Housing Market Grids To A Halt as Forbes States That Recession Continues – November 2022
    Talis Team
    Nov 4, 2022
    Third quarter GDP rose by 2.6% reversing it’s earlier trend. But many economists are still pessimistic about the direction of the economy. Bloomberg put probability of the recession at 100% in 2023 and Forbes says that we are already in a recession. Quoting from Forbes: “The only saving grace of the GDP report was its headline +2.6%.” And continuing further in the same paragraph: “Excluding Net Exports, the domestic economy’s GDP growth was -0.2%. The Recession continues.”

    It feels like Palo Alto housing market hit a wall in October. The number of sales fell by 60% compared to the same time of last year, 60%, and by 47% compared to September of 2022, just a month prior. With only 25 homes sold in the whole city, it is impossible to talk about the price changes. The statistical sample is too small for meaningful analysis. On the county level, however, median home sale price fell by 1.7% year-over-year, fist year-over-year decline since 2019. Again, on the county level October home sale prices fell by 14% compared to the April of 2022, the all-time price peak month.

    This abrupt change in Palo Alto market activity was triggered by skyrocketing interest rates combined with falling stock market. By the end of October interest rates grew close to 7%, more than doubling from 3.25% level at the beginning of the year. This interest rate hike effects both the buyers and the sellers.

    For the buyers, higher interest rates mean and increase in the cost of their loans. If you are a buyer looking for a home now, talk to your lender to get a custom interest rate quote and to convert it into your monthly payments. At the same time, slower market activity means that buyer will have less competition and more power in the negotiations. Afterall, Palo Alto inventory increased to 3.5 months getting close to a balanced market.

    Higher interest rates may lead to fewer homes coming up for sale. Most of the current homeowners were able to refinance at the lowest possible interest rates during the last few years. For them moving to another house means that they have to get a new loan at much higher interest. This will discourage discretionary sales keeping housing inventories low.

    And if you are a seller, it is critical more than ever to prepare your home for sale, price it right and be open to negotiate, negotiate with interested buyers. October median time on the market in Palo Alto was only 9 days – homes that present the best value for the buyers still sell as fast as last spring.

    The third 9 minute video:

    SCARY Brampton Real Estate Update: Slowest Month Of the Year So Far.
    Vic Singh
    Nov 4, 2022
    Brampton real estate update for October 2022. It was the slowest month of the year. Prices for detached homes, townhouses and condos keep dropping every single month.
    Please do a lot of research before buying or selling in this market. Maybe it makes sense not to make a move right now.

    The last 7 minute video:

    London Ontario Real Estate Market Update October 2022: Prices Down 23.5%, Almost 200K, Since Feb 22
    Mark Mitchell – Mortgage Broker London Ontario
    Nov 4, 2022

    London’s real estate market continued to London’s real estate market continued to slide in October, with the Benchmark and Median prices falling and houses selling for even more under asking price. While banks have been predicting a 30% drop in Canada’s housing market prices, from peak to trough, London is already 2/3 of the way there, with our average price dropping 23.5% since February, and our Benchmark price dropping 22%.

    Benchmark Price of a Home in London:

    February Benchmark – 749,000
    September Benchmark – 596,900
    October Benchmark – 584,200

    Average Price of a Home in London:

    February Average – 823,842
    September Average Price – $628,563
    October Average Price – $630,282

    Median Price of a Home in London:

    September Median Price – $590,000
    October Median Price – $575,000

    Sales to List Price Ratio – Over Asking Pricing:

    September Sales to List Price– 97.3
    October Sales to List Price– 97
    February SLPR – 125.6

    Months of Inventory:

    London September 2022 MOI – 3.0
    London October 2022 MOI – 2.8

    September – 22
    October – 22

  2. Report: Third of CMBS Showed Negative Leverage in Q3|23 hours ago
    A new report from Moody’s Analytics CRE signals an ominous inflection point for commercial real estate: nearly a third of new CMBS issuance was afflicted with negative leverage in the third quarter as interest rates surged.

  3. The housing market may finally be at an inflection point. Data from released Thursday showed a steep decline in the median national list price for homes in October, while the share of homes with downward price adjustments has tripled since the start of the year.

    The median national list price fell to $425,000 last month, down from a peak of $449,000 in June, while the percentage of homes on the market that have seen a price cut surged to 20.9% last month, doubling since October 2021.

    At the same time, the overall inventory of active home sales across the 50 largest metropolitan areas in the US increased 46.4% over the past year through October.

    1. “The housing market may finally be at an inflection point.”

      Kinda early, IMHO.

      Gotta wait for Brandon’s mid-terms magic fairy dust to wear-off, e.g., strategic petroleum reserve used to keep voter’s gas prices lower, renter moratoriums in liberal places like California, student loan forgiveness especially those Pell Grant beneficiaries, etc., in addition to Powell’s continued rate increases.

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