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Resale Sellers Struggling With New Construction Comps Dropping Prices

This Post Has 10 Comments
  1. From the first 1 minute video:

    DON’T MISS OUT | :60
    FTX Official
    Feb 10, 2022
    The next big thing is here, even if Larry can’t see it. Don’t miss out. Download the FTX app, the safe and easy way to buy and sell crypto.

    The second 5:19 video:

    Georgetown DOWN 58% in Just 10 Months. Real Estate Update.
    Vic Singh Honest real estate talk
    Nov 18, 2022
    Georgetown Ontario real estate update for October 2022. Georgetown and Acton make up majority of the market in Halton Hills. See what homes sold for each month this year and how that compares to the last 4 years.

    The third 3 minute video:

    Boise Idaho Real Estate Market Update: November 17, 2022
    Nov 17, 2022
    Jonna Weber from Jonna Weber Real Estate brokered by eXp Realty shares insights and statistics about Boise Idaho’s housing market. Is it still a seller’s market? Mortgage rate questions? Check it out!

    What are we seeing in Boise’, Idaho’s housing market?
    👉We are seeing a solid trend towards a buyer’s market
    👉Currently have 3 months of inventory (4.5 months in Ada New Construction homes)
    👉Buyer’s have continued to decrease as rates increased.
    👉Mortgage rates are fluctuating and saw a good decrease last week
    👉Resale sellers struggling with new construction comps dropping prices
    👉Many sellers and buyers are sitting in “wait and see” mode
    👉The median home prices continue to decrease & may continue unless the Feds do a U-turn on rate increases.

    If you’re wondering:
    “Will the value of my home in Boise increase or decrease?”
    “Is the Boise Housing Marketing headed for a crash?”
    “Will Boise’s real estate market remain a “Sellers Market?”
    “Should I sell my home in Boise?”
    “How can we relocate to Boise?” (this one has been increasingly popular as people get wind of how incredible living in the Boise, Idaho area is)
    “What can a buyer do in Boise’s seller’s market?”
    “How can I get my offer accepted in this market?”

    The fourth 3 minute video:

    Austin Texas Housing Report – November 2022
    Craig Smyser
    Nov 18, 2022
    Prices across the area continue to decline so let’s jump right to the numbers.

    The stats I’m providing are resale homes only in Travis and Williamson Counties. This is different than the stats released by the Austin Board of Realtors which also includes Hays, Bastrop, and Caldwell Counties. Plus, their numbers include any new construction homes listed in the MLS.

    In October, 1277 resale homes closed in Travis & Williamson Counties which was down 45% from October 2021. The median price in October increased year-over-year by 5% to $500,000. However, this is 17% decline from the peak median price of $600,000 that we hit in May. In real estate, the primary way we measure home values is with the median price. However, there are other numbers worth examining. The average price of a home increased by 10% year-over-year to $638,422. However, that is down 14% from the peak in May. The average price per square foot increased by 3.7% to $309, but is down 15% from the May high-level mark.

    The number of available homes in October was 5,978, up 145% from last October. During October, 2,043 new listings hit the market which is down 19% from last year.

    The average sales price to list price ratio was 97.35%. For homes that closed in October, the average days on market was 41, up from 18 last year. The October sales ranged from a low of $127,500 to a high of $10,700,000.

    All eyes continue to be on inflation and the Federal Reserve’s response to it. Mortgage interest rates are twice as high as the start of the year. Looking at the market today, I expect that prices will be lower at the end of 2022 than they were at the start of 2022. I expect the medium and long-term for housing in the Austin area to do well. But the short term is obviously different. I don’t know how low prices will go or when we will reach that point. But, even in past markets far worse than this, there are always buyers and sellers.

    I expect prices will continue to decline over the next two to three months. Probably beyond that, but I’m only comfortable looking a short time ahead. Historically, the next few months see the fewest real estate sales and I expect this year to be fairly typical in that regard.

    The fifth 11:38 video:

    Bank of Canada is Losing Your Money & 500K Immigrants Per Year in Canada
    Rock Star Real Estate Inc
    Nov 17, 2022
    For an institution that creates money, it’s difficult to believe that it can actually lose money. But the Bank of Canada has proven doubters wrong and done exactly that! In this week’s Rock Star Minutes we chat about the Bank of Canada’s finances and the incredible population growth we’re experiencing here in the Greater Golden Horseshoe!

    1. “What are we seeing in Boise’, Idaho’s housing market?”

      Highly motivated builders with stagnant inventory!

  2. The trend is clear. Used truck prices continue to fall across almost all years and models as new truck manufacturers gain an upper hand over supply chain disruptions.

    So, those who purchased a used truck at a sky-high price a few months ago could be feeling buyer’s remorse, especially as spot freight rates have tumbled with contract rates falling right behind them. 
    Buyer’s remorse

    The chase for $4-a-mile loads is history. Scores of drivers who reactivated their Department of Transportation authorities are surrendering them and joining for-hire carriers or leaving trucking altogether.

    It will be awhile before used equipment prices return to pre-pandemic levels, according to Chris Visser of J.D. Power Valuation Services. “Looking at supply, the new truck backlog is still considerable, but deliveries have been above a historically typical 20,000 per month since March,” he wrote in Power’s Guidelines November newsletter. “Delivering this volume of trucks into a correcting freight environment means we can expect more trades and depreciation going forward.”

  3. MoneyWatch
    NFT prices slump as FTX’s collapse shadows digital collectibles

    By Khristopher J. Brooks

    November 18, 2022
    The value of non-fungible tokens, or NFTs, is plummeting amid renewed questions about what cryptocurrencies are worth. 

    The crypto world suffered a major blow last week when FTX Trading declared bankruptcy amid a $8 billion shortfall. The fallout is now affecting the digital collectibles realm, said NFT expert Connor Borrego. 

    The price of “The Currency,” a collection of NFTs by celebrated artist Damien Hirst, fell 12.6% to $4,666.60 on Friday while Moonbird NFTs fell 4.7% to $8,397.50 and Bored Ape Kennel Club fell 8.3% to $4,672.60, according to NFT Price Floor. 

    FTX’s bankruptcy has pushed down the price of some cryptocurrencies, shrinking the buying power NFT collectors enjoyed in the past, Borrego said. Most collectors buy NFTs using cryptocurrency, although many marketplaces also accept traditional payment options like credit cards. 

    An NFT gives someone proof of ownership of a digital object, or access to services, using a unique code on the blockchain that is linked to an image or video. NFTs can be transferred or sold but because of their unique codes, they cannot copied or divided into smaller parts like other tokens. Some people buy NFTs in the hope their value will rise, while others buy them strictly for bragging rights or to participate in an emerging tech trend. 

    A “Bored Ape Yacht Club” NFT that Justin Bieber bought for $1.3 million in January is now worth $70,000, Insider reported. 

    Although NFT sales have slumped, the bright side is “it’s much cheaper to buy the expensive NFTs,” Borrego added.
    Expect more scrutiny

    NFTs were all the rage last year as artists, athletes, celebrities and big retailers used the emerging technology to hawk digital versions of their wares. But FTX’s collapse now means crypto companies must work to rebuild customer confidence, industry leaders said. 

    Account holders were “really hurt financially” by FTX’s meltdown, and they will remember how much they lost, Binance CEO Changpeng Zhao said at a TechCrunch crypto conference in Florida on Thursday.

    “That’s going to really shake confidence in trust credibility in this industry,” he said. “So now, people are withdrawing funds from centralized exchanges, and the volume [of transactions on an exchange] will decrease. The regulators all around the world will be scrutinizing us very heavily going forward.”

  4. Salt Lake City had the biggest year-over-year decrease in home sales of 53 metro areas surveyed in the latest national housing report from Re/Max.

    The report showed Salt Lake had a 48.3% drop in housing transactions.

    Las Vegas was second with a 45.3% decrease, followed by San Diego, Portland and Phoenix.

    In a number of categories, Salt Lake City stood out among the major cities. Salt Lake was in the top 5 markets with the biggest increase in days houses stayed on the market, and second in the increase of months inventory stayed on the market.

    The total number of home sales throughout the 53 metro regions examined in October 2022 was down 30.7% from October 2021 and down 13.5% from September 2022.

  5. A California judge sentenced Theranos founder Elizabeth Holmes to 11 years and three months in prison for defrauding investors in her now-defunct blood testing startup that was once valued at $9 billion.

    U.S. District Judge Edward Davila in San Jose, Calif., sentenced Holmes on three counts of investor fraud and one count of conspiracy. A jury convicted Holmes, 38, in January following a trial that spanned three months.

    Holmes, dressed in a dark blouse and black skirt, hugged her parents and her partner after the sentence was handed down.

    During the hearing, Holmes cried as she said she was “devastated” by her failures and would have done many things differently if she had the chance. “I have felt deep shame for what people went through because I failed them,” she said.

  6. This is how the LA Times gets ready to write an article on tales of woe:

    LA Times

    Did you buy a home in SoCal at the peak of the market? We want to hear from you

    At the moment, Southern California home prices are falling and are now 5.4% below the peak reached in May, according to Zillow. Prices have turned negative because of rising mortgage rates, and many experts predict home values will decline further. That raises the prospect that homeowners will increasingly be underwater on their loans — that is, owe more on their mortgage than their home is worth.

    The risk is greatest for people who bought in spring or early summer 2022. If that is you, The Times would like to speak with you.

    1. “The median home price in Orange Count has reached $1 million for the first time in history.”

      That’s for a used home, not new. Vive la SoCal

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