Posted on 08/17/2021 7:56:31 AM PDT by millenial4freedom
A five-month run of record-setting home prices has come to an end, according to new data, potentially signalling that the home-buying surge that accompanied the Covid-19 pandemic in the US may be tapering off. Real estate brokerage firm Redfin released a new report based on aggregated market data from multiple-listing services showing that the median home-sale price did not rise to another record high as it had in each month since March. Instead, prices were stable in the more than 400 US metropolitan areas covered by the data, dipping 0.2 per cent from the four-week period up to 25 July.
(Excerpt) Read more at finance.yahoo.com ...
I don’t know if it is possible for it to “marginally cool”. When it goes up fast, it usually goes down faster. Speculators and flippers become a driving factor. People start walking away from homes they can’t afford. The government stops high unemployment payments. Landlords start evicting people when the government ends its fascist rules.
Then it snowballs.
There is no national or even state “housing market”—statistics just muddy the waters.
Real Estate is _very_ local, even more local than zip codes.
What I'm seeing now is that there are more listings on the market, and some listings have been there (overpriced, in my opinion) for weeks.
I'm also seeing new homes being started in my area for the first time since before the pandemic. Everything new I've seen up to this point was already being built before early 2020.
Well, new construction always lags behind demand, since you can’t build new houses instantly when you realize it will be profitable to do so. So it could just be that construction is finally starting to catch up to the demand.
Lumber prices have recently dropped a fair amount. A stud that was $7.38 a couple months ago is now $3.97. Still high but much better.
Gotta think that ending the illegal eviction bans will trigger a return to more of a normal cycle.
There are still major problems with all construction projects.
Yes, lumber, plywood and OSB have come down drastically on the wholesale market. They are slowly adjusting on the retail market.
However, there are still shortages of appliances, electrical panels, doors, windows, and many other building components.
I stated on another thread today about a house on the ocean here in NH that has been under construction for over one year.
As of this past Sunday, they were still waiting for one exterior door and the garage doors to close in the exterior.
Yes, it will affect certain markets more than others.
They showed a map of the US yesterday on Fox Business. They cities with the most potentials for evictions were Houston, Dallas and a few others.
We are overdue for a correction in housing prices. We have been now going up here in NH for 10 years straight. The last year was a 24% increase on average.
The big increase in the last year was from all the people leaving the greater NYC area.
yes, my older cousins who bought in the Spring of 2012 made out like bandits (I believe that’s exactly when the market bottomed out from the last bust). What’s interesting is there is almost a consistent ‘correction’ once every 15 years or so (according to the Shiller-Index)
A lot of folks will be homeless, and there will be a glut of apartments and rental homes.
When I lived in Seattle in the 2000’s, I only rented. The reason was simple: I actually rented a fairly nice three bedroom tri-level a couple of blocks from Paul Allen’s place on Mercer Island for $1400 a month while, had I bought the place with a 30 year loan, the monthly payments would have been closer to $4,000 a month. And then prices collapsed. I’d have been screwed two ways.
Instead, I simply moved to Rural Kentucky and got myself a nice new house and over 12 acres of LAND for $540 a month on a 15 year loan, and the annual taxes were $210 (they are $248 now because I bought the 20 acres next to it 8 years ago).
When pent up evictions come, it’s going to be epic.
The cure for high prices is...high prices.
Garbage.....Propagandist garbage.
The housing market problem of too little inventory and constantly rising prices is prevalent now and for a long time coming in certain markets. To name three, Charleston, Boise and Raleigh Durham
Spring of 2012 is when I bought my current(third) house.
I also sold the house I was living in(my 2nd house).
In 2011 the bank owned houses got dumped around here. The foreclosures were the very bottom of the market. I tried to buy one but Fannie Mae did not want to wait for me to sell my existing house. A flipper bought it for $280K. Sold it six months later for $440K.
Since 2012 prices have more than doubled here in southern NH.
Boise and Raleigh/Durham are two of the hottest markets in the country.
They have little to do with what is going to happen in NYC, Chicago, Atlanta, LA, San Fran, Philly, Boston, Rochester or Cleveland, etc.
I sell to people in both of those markets. They are extremely busy. The hottest market in the US is Coeur D’ Alene, ID on a per capita basis.
One feature of Zillow is that it shows percent increases and decreases in asking price. One property I looked at (on Zillow) had a 281% increase (over the last asking price).
Not many properties have any decreases as of yet.
One of the things I found about Zillow is that those figures can be misleading. I recently put in an offer on a home that showed an enormous increase in the asking price over the last two years. There was a good reason for that. The current owner bought it two years ago in a state of disrepair and probably put at least $100,000 into the property to upgrade it since then.
The property to which I referred was undeveloped land. I’m casually interested in such.
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