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An Increase In Price Drops Across The Country

A report from Redfin. “U.S. home-sale prices increased 4.7 percent in August to a median of $300,900, compared to a year ago. The price growth rate has been dropping for six consecutive months and has not been this low since August 2014. Homes sales fell 2.4 percent in August compared to a year prior. ‘While sale prices moderate, new listing prices keep accelerating,’ said Redfin senior economist Taylor Marr. ‘This mismatch between seller expectations and reality is fueling an increase in price drops in metros across the country.'”

“Nearly 30 percent of homes on the market in August had a price drop, the largest share on record since Redfin began tracking this metric in 2009, and a 3.4 percentage-point increase over last August. It’s worth noting that the share of homes with price drops typically peaks each year in July or August.”

“Redfin has been closely tracking a market shift in San Jose, California, Seattle, and Portland, Oregon, over the past three months. The trends of increasing inventory and declining sales we reported in June and July intensified in August.”

“In San Jose and Seattle, the supply of homes was up nearly 50 percent year over year. In Portland, inventory increased 25 percent. The increase in inventory is the combination of more people putting their homes on the market as fewer buyers are stepping up to purchase. San Jose, Seattle and Portland saw respective sales declines of 16 percent, 19 percent and 6 percent.”

“Rebecca Walter, a Redfin agent in Portland, says the market shift has been dramatic. She is seeing far fewer multiple offer situations lately compared to last year, even in popular neighborhoods. Walter says in this market, pricing right is more important than ever.”

“‘I tell sellers that the worst thing you can do is overprice your home. If you have to drop the price, you can’t recreate the same excitement and fervor as when your home first hits the market. Pricing too high can ultimately result in getting less than market value, below what you likely could have gotten if you priced at market value from the start.'”

“She says homeowners who are thinking about selling should consider doing so sooner rather than later. ‘I don’t have a crystal ball, but I wouldn’t count on your home appreciating and being worth more in the spring than it is now. The Fed has indicated they will make one more rate hike in December, which would impact buyers’ purchasing power. We have this window before the market slows for the holidays, so the sooner the better if you’re planning to sell.'”

“Seattle saw the largest decline in sales compared to last year, falling 18.5%. Home sales in San Jose, CA and West Palm Beach, FL declined by 15.6% and 12.5%, respectively. San Jose, CA had the highest increase in the number of homes for sale, up 49.1% year over year, followed by Seattle (46.4%) and San Diego (26.2%).”

From MarketWatch. “Home builder stocks were broadly lower Monday, as mortgage-finance company Freddie Mac said the U.S. housing market had ‘essentially stalled.’ ‘The spring and summer home buying and selling season ultimately ended up being a letdown, despite a faster growing economy and healthy demand for buying a home,’ said Freddie Mac Chief Economist Sam Khater. ‘Unfortunately, too many would-be buyers continue to be tripped up by not enough affordable supply and the one-two punch of much higher home prices and mortgage rates.'”

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This Post Has 20 Comments

  2. ‘Rebecca Walter, a Redfin agent in Portland, says the market shift has been dramatic’

    Have we done Portland?

    Just in case: Eeee-bola Portland!

  5. “‘I tell sellers that the worst thing you can do is overprice your home. If you have to drop the price, you can’t recreate the same excitement and fervor as when your home first hits the market. Pricing too high can ultimately result in getting less than market value, below what you likely could have gotten if you priced at market value from the start.’”

    Hey, what happen to the “You got to roll with it” realtor? The signing contracts on the cars’ hoods?

    “She says homeowners who are thinking about selling should consider doing so sooner rather than later. ‘I don’t have a crystal ball, but I wouldn’t count on your home appreciating and being worth more in the spring than it is now. The Fed has indicated they will make one more rate hike in December, which would impact buyers’ purchasing power. We have this window before the market slows for the holidays, so the sooner the better if you’re planning to sell.’”

    If you want to sell at peak price, you’re 6 months too late. If you brought in the last 3 to 4 years, you’re schlonnnggged. If you brought 2011-2013, you better price it right or you will lose all your “profits”. This housing bubble 2.0 seems to explode much quicker than the last one. I guess people still remember after all. HE who panic first, panic best!

  7. “I wouldn’t count on your home appreciating and being worth more in the Spring.”

    It would be refreshing if she was telling buyers, rather than just sellers, this. I wonder if she is.

  8. “Freddie Mac said the U.S. hou$ing market had ‘e$$entially $talled.’”

    Whi$t the hot air balloon Hindenburg was going down in flame$ @ what point did it’s $tall $peed become an i$$ue?

  10. Contractors around here still haven’t gotten the message… yet.

    They’ve still got a backlog of demand and are quite primadonnaish. I’m hoping by next summer things will have cooled down enough that they will get more reasonable.

    It’s been such a boomtown for years around here that I think many of them are in for a rude awakening soon…

    2. Contractors work hard for their money. The same cannot be said for a lot of these “tech workers” who sit around on a computer every day, oftentimes watching porn and commenting on blogs rather than producing anything of value.

  11. https://www.movoto.com/las-vegas-nv/market-trends/

    LV inventory up 30% YOY. Price decreases 2% but still show increase per sqft. However, as supply explodes and sales crash this will change pretty quicker. Alot of vulture speculators from CA will be burn….I know many people from CA with multiple investment properties. The peak has passed and now everyone will be heading for the exit door.

    1. A tug.a.war$ of which winning $cenario can do so the $lowest

      $cenario: “a po$tulated $equence or development of event$.”

  14. The Redfin agent was a refreshing change from the usual bs. I have generally found the more experienced and long lasting agents give straighter talk than less experienced pumper types. I deal professionally with a bunch of them and they run the whole gamut. The good ones stick around a lot longer through slow times.

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