It is good for home prices to come down off its previous trajectory.
They should come down.
$3M for a 3/2 built in 1961 in Mountain View that sold new for $20K is absurd. And non-competitive: the H1Bs who live in them aren’t worth anywhere near what Their stock options make them look like they’re worth.
Here in Phoenix, the prices went up 40% before they went down 10%. We had to buy near peak in 2021, but we got a great interest rate. If we have to move in the future, I will try to keep the house and rent it out.
There was a 20 percent markup during covid for no reason in many places. Needs to come down.
1. The prices were inflated to begin with.
2. That the prices may be coming down is not necessarily bad for staying put homeowners and is good for home buyers.
I remeber during the last housing bubble, when a California friend of mine noted that the highger house valuations looked good for them and other home owners ON PAPER, but it was also the reason her two college graduate working children were still living with her and her husband.
It is good for home prices to come down off its previous trajectory.
As they should. Insanity needs treatment.
Why is affordable housing and less property tax a bad thing again?
Basically, those are cuts in the increase of prices.
IOW, prices are still up from during and after the pandemic and before and after the inflationary prices.
Nobody is getting a deal from the ‘decrease’ in prices.
It would make sense that this headline would be legitimate. Almost weirdly the headline is based on a statistical anomaly that is not as meaningful as it would appear... That is mostly because the “peak” at least in the Seattle area where my wife and I live was a frothy over the top buying frenzy that lasted only a very short period last Spring and Summer before prices retreated sharply to where they were earlier in the year.
“What is the housing market like in Seattle today?
In December 2022, Seattle home prices were up 0.6% compared to last year, selling for a median price of $775K. On average, homes in Seattle sell after 31 days on the market compared to 13 days last year. There were 515 homes sold in December this year, down from 979 last year.”
https://www.redfin.com/city/16163/WA/Seattle/housing-market
Any information about real estate should always be considered suspect. There is not a more dishonest bunch of “professionals” than realtors. Even lawyers take a back seat. The vast majority of realtors that I have met in my lifetime have always hoped to make a bunch of money without really working for it. Their hope is always to find people who will sell for less than market value and others who will pay for more than market value a short time later.
I thought the internet and increased information availability would improve the situation but like just about everything else... the misinformation has increased far more than legitimate information. Realtors know that if they can keep the public confused that they can profit from the situation.
There are a lot of self-correcting factors at play currently. It is not that I do not believe that the Biden administration is not capable of crashing any segment of the economy. It is just that despite more than doubling interest rates from historic lows... demand remains high in many segments of the real estate market.
What’s next, a headline in CAPITAL LETTERS telling us nights are now colder than days??!
It’s not a “mess” when something overpriced by 300% drops in value by 13%.
Idiotic histrionics, of “the sky is falling” variety.
We moved into our home here in Alabama after moving from Bremerton, WA (the greater Seattle market). Bremerton for those who do not know is directly across Puget Sound. About an hour on the Ferry ride. It costs much less to live over on the West Side of the Sound than in Seattle itself. When we left in 2006, we sold our house for twice what we paid for it 14 years before. We had done a lot of remodeling and landscaping and it was a nicer home than before. The Seattle market is crazy. In the hot market of 2003-06, when a house in Seattle went on the market, there would be 20-30 people BIDDING on the danged houses!! Crazy prices over there back then.
Awww. The flippers are upset. My heart bleeds.
Up the road from Austin in Dallas.
Prices will need to drop 60% to 70% to get to "normal."
A 10% drop is NOTHING.
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