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It’s A Shocking Reality

A report from Fox 2 KTVU in California. “For years, the upward price of Bay Area real estate has showed no signs of reaching a limit. New research shows that’s changed, as some sellers are learning. Mariann Jensen thought the sale of her three-bedroom home in the Blossom Hill section of San Jose would be a slam dunk. On the market in June, the nicely decorated stand-alone sat with only tepid interest, until it sold in September.”

“‘Just be prepared for anything, you know? Good offers, bad offers. Any offers. Just be sure you’re ready to wait it out. Or price, maybe different. Maybe lower the price,’ said Jensen.”

“It’s a shocking reality, as what has been a seller’s market shifts in favor of buyers; prices are being are being lowered to make a sale. ‘We noticed that the open houses died off, and things got slow. And then all of a sudden the offers just didn’t come in like they used to,’ said Sandy Jamison, a broker-owner with Tuscana Properties.”

“According to Redfin, nationally, more than one quarter of the homes listed for sale saw a price reduction. The red hot real estate market is cooling, especially in California. And sellers are trying to catch lighting in a bottle by bending to the will of the buyers.”

“‘Buyers are being discerning. Before they were looking at, here’s the list of things I want. Well let’s pick one and get a house. And now they see more inventory,’ said Kalena Masching of Redfin.”

“Fred Foldvary, an economics and real estate lecturer at San Jose State University says his research shows an economic recession follows falling real estate prices. Maybe it won’t be as bad as the crash of 2008, but those ghosts still haunt sellers. ‘I was worried we were gonna be here for a little bit longer,’ said Jensen.”

“She and her husband closes on the sale of their home this week, and then head to Hill Country in Texas to be closer to their children. For other sellers, the advice is to pick a price, but be prepared to do something that hasn’t happened in a while – take less than asking.”

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This Post Has 30 Comments

  1. ‘It’s a shocking reality, as what has been a seller’s market shifts in favor of buyers; prices are being are being lowered to make a sale’

    Wa? You mean you can’t just pick a number and add some zeros like Seattle? That is shocking!

    ‘We noticed that the open houses died off, and things got slow. And then all of a sudden the offers just didn’t come in like they used to’

    Ah yes, the old “it’s like someone flipped a light switch” line.

  2. ‘For other sellers, the advice is to pick a price, but be prepared to do something that hasn’t happened in a while – take less than asking…Maybe it won’t be as bad as the crash of 2008, but those ghosts still haunt sellers’

    Notice the almost dark tone, like somebody died. It was like that in all of New Zealand when that reality TV segment actually lost money! The newspapers talked about it for a week.

    Lighten up bay aryans, it’s just money!

    1. I had a conversation with a local realtor yesterday and asked him if he noticed anything changing in our local RE. He said it is cooling a bit but that’s normal for September. He did mention that all the foreign buyers seemed to have disappeared and didn’t have any explanation as to why when I inquired. I suggested that maybe they don’t see the market as a good investment anymore, he looked puzzled. That ended that conversation.

      1. Hmmmm … perhaps I should consider offering up a Porn Starlet Special … one that possesses some rather interesting terms.

        😁

    2. “Sales of existing single family homes have dropped each month for the last six months and are now at the level of July 2016.

      Probably time for some more rate-hikes…”

      Sounds good to me. We don’t want to drag this bubble like we did the last one. Add some more lighter fluid to that fire!

      1. Normally I agree but I’m curious to see how far it drops without a rate increase, have it settle, then let rate rises crush it.

    1. It’s almost like the oligarchs who own the MSM have a vested financial interest in keeping the Fed’s asset bubbles and Ponzi markets levitated, so they lure the last of the muppets into the rigged casino or sell them overpriced shacks before it all comes crashing down.

        1. The Fed has finally started tightening, but the ECB, BoJ, PBOC, etc. are still pumping trillions in stimulus into their financial sectors to forestall the long-deferred financial reckoning day.

          2. Shorten my name, still having to type in every time and this time it cut off the longer one. I agree the other central bankers will continue to print money and expand debt. Expect Australia to really fire up the debt machine soon. Do not expect it to happen here since Trump is not a globalist. The globalists do not want a booming economy under him. Even with the head winds of a declining Fed balance sheet and rising interest rates, the economy is growing twice as fast as under Obama. I like economic nationalism.

          5. “Dan, did you check the box that is called “Save my name…”?”

            On mobile devices that seems to be an option but now on my laptop on Firefox it’s not there.

          6. ‘on my laptop on Firefox it’s not there’

            Is your browser auto-completing the log-in even if the box isn’t there?

    2. I also recall know-it-all bay aryan brokers saying only stock corrections could make their shacks worth less.

      DONG!

  10. Sky, I have been checking the box but it is possible the last time, I forgot. I will see the next time I post because it is clearly checked this time.

    1. Auto populate is working. I see TPTB allowing the bubble to pop under Trump and then blowing another one if and when a globalist gets in office. Debt booms borrow growth from the future which means lower growth in the future. That is why it is so amazing that Trump could achieve the present growth. Yes it is still based on too much government debt but the nominal and certainly GDP to debt ratio is lower than Obama’s and we have twice the growth.

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