Posted on 07/15/2021 9:13:08 AM PDT by millenial4freedom
Although it’s still expected to favor sellers for the foreseeable future, several key indicators suggest the wild housing market may soon start to cool off. At least a little bit.
Recent data from Seattle-based Redfin Corp. found the number of homes newly listed for sale surpassed 2019 levels during the four weeks that ended July 4. That’s the the first time this year that’s happened.
Homebuying demand has also recently — somewhat — tapered off, according to pending sales data, Redfin’s Homebuyer Demand Index and Mortgage Bankers Association’s survey of number of mortgage applications.
Realtor.com found similar indications in its June housing market report. Newly listed homes were up 5.5% nationally year over year, and 11.7% higher in large metros in that same time period.
Although pending home sales were up 17% year over year, Redfin says it was the smallest increase in almost a year, since the four-week period ending July 19, 2020. Pending sales were down 6% from the four-week period ending May 30, compared to a 3% decrease in the same period in 2019.
Daryl Fairweather, chief economist at Redfin, said this is a new phenomenon in the current housing market, which has seen skyrocketing prices, bidding wars and not nearly enough inventory to keep pace with demand.
“It seems that we’re at a turning point in the housing market, where prices have gone up so much that buyers are backing off and home sales are starting to get sluggish,” Fairweather said. “Sellers are noticing this and are wanting to sell at the top — they feel like this is as good as it gets.”
(Excerpt) Read more at masslive.com ...
Freepers/realtor Freepers, how is the market looking your area?
So, your home value went through the roof. You sell. Make some money. Buy another house with an inflated price. Unless you’ve downsized, are you ahead?
Unless of course you sold out to liberals that are colonizing your nice city/town and you’re heading far, far, far away from them. I get that.
Still nuts in SW Washington. I expect it to come back down to normal someday but right now a lot of folks are fleeing Portlandia. I know zillow isn’t always realistic with their valuations but my place us up about 10% over the last 30 days.
It was a good time for empty nesters and retirees ready to downsize. Yes.
Possibly, but I don’t know, I figure houses that were rented probably would see openings and selling activity once evictions start ramping up again.
“Unless of course you sold out to liberals that are colonizing your nice city/town and you’re heading far, far, far away from them. I get that.”
Exactly what we did 3 years ago. We invested the cash we made and have generated $150K so far.
Played their hand very well.
“Recent data from Seattle-based Redfin Corp. found the number of homes newly listed for sale surpassed 2019 levels during the four weeks that ended July 4. That’s the the first time this year that’s happened.”
Yes. Prospective (inflated) prices are up so more owners want to get in on what is still a sellers market. Only when average per square foot price’s on the final sale decline and numbers of houses for sale do not similarly decline will the market flip from favoring sellers to favoring buyers. What could move things to that flip is more new home building in the tighter markets. Maybe the Fed will keep inflating things with extremely low interest rates to the point they generate a new - inflated - home building boom and bring on the next financial crisis.
They are always on target with the problem that already happened (that they did prevent and never got ahead of) and with solutions that bring on the next problem.
The market is on fire in my backwater ag town.
I think prices will drop in the fall when all the foreclosures and evictions start being processed
I see lots of junk being listed, the good stuff is about gone, and lots of dreamy prices for seller being dropped while homes stay on the market longer or get no or not much action.
Perhaps this insanity is winding down at least in some places. It is really not good for anyone except sellers wanting to monetize an asset and replace it with something else that is not an equally inflated house.
Nobody that I don’t invite can get in my front gate. Only a couple of people have ever tried to walk the distance to the farmstead that I know of and they were met by the dogs before they could make it to the house. It is entertaining to watch them climb the lane fence into the pasture to escape the dogs. Of course anyone who wants to look can find out who owns the place and pays the taxes so I get letters from realtors wanting to list. They have even gone so far as to contact neighbors to make inquiries on their behalf. Neighbors that know me just laugh. I’m a pretty happy hermit.
Like in an oil boom, when the actors and distant investors start showing up, the boom is about over. When properties that can’t sell start being hopefully listed with stupid prices the boom should be about over.
Dependson where you live. If you’re fortunate to have your property taxes locked in at a low tax basis and low yearly increases (i.e. Prop 13 in California), even a downsize could leave you with a higher property tax bill.
“I think prices will drop in the fall when all the foreclosures and evictions start being processed”
So, suddenly, all the free money and govt interference is going to disappear? The feds are going to allow 10 million, or more, “people of color” to be evicted into the street?
I consider it unlikely.
yes, I would find it hard to believe our elites would allow ‘structural racism’ in the housing market
I am seeing this where I live in SoCal. The real estate market was on fire but a couple of homes are still on the market.
We are selling our home with 4 acres on it and moving back into our home we built in 2014 after renting it for 3 years. We are one of the few that is in a great position with this market. We’re not having to purchase another home after the sale.
That said we did price it high and have had 3 showings over the last 3 weeks. Will be lowering it next week.
In our area there are almost no homes in the $250,000-$275,000 price range. They sell in a day or two in bidding wars.
The wife and I just signed a purchase agreement today on a home. It’s well above other homes in the area but has just been remodeled too to bottom, inside and out including appliances. I can’t believe we got it before someone else. Homes in this area are going fast especially in the $100,000 - $150,000 range.
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