Posted on 02/21/2023 7:43:11 AM PST by Kaiser8408a
Because for me, as a CASH BUYER, god forbid prices continue going lower - is that what you're saying?
Doesn't make sense!
Regards,
Could one more-accurately refer to them as "sellers hoping to themselves become buyers at the drop of a hat?"
Regards,
Prices jumped because there was a flight to hard assets while the government was pumping greenbacks into the system People in effect buried their script into housing with the FED encouraging it with rates lower than the inflation rate. No brainer. So what happens now. If you were the last one in line to buy, to whom to you sell? Worse if you got in over your head, you wait for the mortgage call or try to get ahead of it in a buyers market.
Lower but mortgage rates are much higher and borrowing money has become more difficult so both the buyer and seller are affected which hurts thd economy.
So this is meaningless drivel. Journalists are mostly ignorant scum. With editors beings commies and leftists. Of course, this could be an AI article for the ignorant masses.
The problem is supply-side economics are actually real. Lets say you bought a house in 2019 for $1M. With the market in an uptick, in 2022 you think your house is worth $1.1M. Now, the price is dropping to $1.09M. The problem that you have is that commissions still average around 6%, and you are taxed on “capital gains”. In short, you cannot afford to sell your house even if you wanted to, because you would lose money. This accounts for the drop in sales YoY. Now, will the prices ever get back to 2019 levels ... maybe, but even if they do, all you are getting back is the equity that you put into the property. Keep in mind, selling the house is the primary retirement plan for most of America. If you can’t make a decent return on your house, you cant retire. This is why Real Estate always MUST be looked at from the perspective of the seller. Until you can convince them to sell, you have no inventory. Also, keep in mind that sellers will need to buy another house, and the interest rates they will pay now will lower what they can afford, so selling now guarantees that you will be downsizing.
They are all single family homes. Our county is not run by demonrats.
My wife and I are RE brokers in socal. Slow since early last year. Prices in Cal crazy. We work the beach areas and get buyers who can sell their homes inland and move to the coast. Good for them and us. But there has to be a downturn in prices including our own home or no one can buy. Of course I know friends who moved to Texas and Fla seems to be hopping.
I hardly ever run into 6% commission. The market is too tight for that anyway. We do 4.5-5% and if we double end with the buyer and seller, we might go 3-3.5% We’re full service but you can get those discount agents for 1.5-2.
The problem with doing your own in CA is we are too litigious. A good broker can keep you out of court.
In 2020, when the lockdowns started, no one was selling or buying. Then, when the interest rates dropped, everyone wanted to buy. The market went crazy. Great time to be a seller. But, will there ever be a buyer’s market again?
At some point you will have to sell it, even if it is after you're gone as part of your estate. The longer you plan to live in it, the less the risk. But if prices keep declining for a couple of years and you have a life event that makes you decide to sell, you could take a loss on it.
For a cash buyer like you, that isn't as big an issue as it is for someone with a mortgage to pay off at the end of the sale.
House hits the Market tomorrow...
Asking price is $150k over what it sold for in 2018...
Expect offers by this weekend...
Welcome to Maryland...
Yes - But first I have to buy it!
So here I am, licking my chops, while I watch housing prices decline.
Yum-yum!*
Regards,
*Not really; I'm simply trying to place myself mentally in the position of a hypothetical potential buyer.
Many decades ago I moved to SoCal from “Back East”.
(I have returned since.)
Even then the real estate market there shocked me with its relatively very very high prices—with much smaller lots than I was used to seeing—and everybody and their dog seemed to be a real estate agent—at least part time.
Now I live on many acres in a rural area in New England.
Yeah—we have winter—but I can’t see or hear any neighbors—and that is more important to me.
They must have got the permits long ago check you state amendments things have changed.
The only places where apartment won’t be built is in high dollar homes areas all other places will see them it’s to devalue home prices for the developers.
NOTE where they are building apartments and you’ll get the point.
Guess where the 6 million illegals will live.
They are not building apartments in our community. Too small and too rural. They are building them in the the larger towns >10K to the north and south of of ours. Our population is around a thousand. The only sructures taller than two stories are grain silos.
No community is small or to rural you better check out construction around the country.
You not exempt just smaller area they are the last ones hit with it.
Well the plot plan was published and it has zero multifamily dwellings on it. It’s the first new housing development here in 50 years. Most house building here has been replacement of old houses built in the 30’s and 40’s, often replaced with double-wides.
Unless they teach in the local schools or farms, everyone here commutes 20 miles to an actual town for work. We have a gas station mini Mart, a bank, a restaurant/bar that closes at 8 on weekdays and 12 on weekends and the Sugar Shack that serves fancy coffees and muffins to the commuters and soup and sandwiches to the high school kids and retirees. And four churches!
We don’t even have a traffic light.
Agreed. We bought our first house when interest rates were around 12% but we refinanced several times as the interest rates dropped a couple points. There was a great real estate columnist Robert Bruss who I read every Sunday religiously. He had some unique ideas like rent to own for sellers during bad times.
You have much to learn about rural areas—particularly in the Northeast.
There are no apartments because there is no city/town water and no city/town water treatment.
It would cost an insane fortune to build them—and the states and towns are totally broke. I have not heard anyone in the state legislature even propose extending water/water treatment infrastructure to rural areas—they would be laughed out of the chamber.
Even in a tiny state like mine (CT) most of the state is rural and will never have apartments in the town limits.
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