Not for long. This always lags realities that are just now setting in.
Sales are down because there’s fewer and fewer homes on the market....that’s why prices are up.
At least those with their eyes open can easily see this one coming. And it will be historic.
What type of idiot calls no inventory, slow sales and stratosphere pricing a “hot” market?
Homes in my hood sell immediately 30-50K over selling price with NO inspections allowed. My niece gave up and decided to build her own.
Cue Buster Poindexter
I don’t know how this falls into the data but we’ve noticed some things here in the Knoxville area.
The area MLS database is interesting. When we were house hunting in 2009-2010, the total number of available properties before applying any filters was over 22,000. A year ago the number got down to a little over 7,000 and sales were hot. Now it’s over 10,000 available.
Still, most homes within our query range go pending within a week, and some within a weekend.
Rarely, there will be a “price reduction”, but it does happen.
It seems that sales are hot while inventory continues to increase. Inquiring minds want to know...
Let’s hope it lasts another month. Putting our townhome on the market in a few weeks. It will be the ONLY one under $400k in our zip code that’s not under contract.
This will not last much longer. The housing market will replay 2008, only much worse . Just add to pile of disasters going on right now. All man made contingencies!!!
Prices remain high because of supply issues. People can’t afford to move to a new home so they keep their current one. Further, there is a trend in hotter real estate markets for private equity to buy residential homes and rent them out. Interest rates are very low and there is a surplus of tenants. If prices rise, the landlord refinances the house, doing an equity takeout of tax-free money and uses it to buy more inventory.
It’s going to take 10%+ 30 year mortgages to fix this.
And 18% car loans.
“Great affordable housing policy out of DC!! “
It will definitely make houses cheaper in the mid term.
Three of the four homes in my cul-de-sac all sold within days of being listed. The same holds true for the general area.
It will slow down when rates hit 16%. That was what I paid back in early 1980 for my first home.
I have never seen rates so low as the past few years. People are spoiled.
Of course homes back in the early 80’s were not quite as expensive but wages were not as high either.
I sold my house (3 blocks from Apple HQ) in April. Waiting for the current bubble to burst before I buy more property (this time in TX). I give it till end of summer.
I think home prices in places like CA, will decline, as they have been ultra bloated and inflated for many years. While other states that have been approaching CA prices for the past few years, will be much less affected.
Inventory in our area is extremely low. Prices still escalating. We sold Mom’s house across the street in January and now it looks like ours will go for about $20,000 more.