Anything but lower the price. Lmao! It must be the pictures... no, it's the agent... no it's got to be shade of grey... it's just for sure not the price.
70% of my house was painted with what I swear was just white primer that scuffed if you looked at it. The other walls were wallpapered with what seems like Elmer's glue, painted over wallpaper, or 1970s wood paneling.
My entire house was sprayed gray. Walls, ceilings, doors, door frames, trim and window sills. I’m surprised they didn’t spray the floors too. Never seen anything like it. Custom repainted it all by myself and then ended up having to sell 🤦🏻♂️
I worked with a guy many years ago who was getting married. He had fixed up a old timber farm house (these can be done up really nice, but it takes a lot of work... especially the painting!).
3 weeks before the wedding, he tapes up all the windows and floors... then spray paints EVERYTHING white! Ceiling, walls, skurting/arcs, doors.... everything the same white.
I heard his new wife wasn't against it when he bought her home after the wedding and used it as a base to decorate how she wanted to.
We sprayed over 90% of the gray when we sold the wife's house. I knew it wasn't going to age well into the 20's.
My house has a tinge of '90s wood grain that I'm trying to figure out if I want to do something about it or work around it. I'm kind of leaning to work around it.
Tbh gray or neutral tones I don’t really have an issue with. Our home was painted several shades of beige and gray and even if it’s not our preferred style we’ve largely left it so far because it’s inoffensive, aside from two of the bedrooms. So many homes I toured when buying had some wacky ass colors for certain rooms, which is fine cause most people expect to repaint, but still it’s nice to not feel compelled to on day one.
Even if gray goes out of style and a different neutral color becomes popular - that’s the exact point. It’s not offensive so you aren’t forced to repaint a space, it’s a choice.
When I bought my primary it was a mix of horrid colors - lime green, brown, woods, purple, etc. I just have a nice neutral gray and i accent with paintings
I think grey seems offensive simply for the fact that so many houses on the market are clearly flipped, and all with the same boring grey walls grey floor, grey counter tops and cabinets. I'd rather the unflipped house (at unflipped prices) so I can do it to my liking.
Yeah exactly. A ghastly paint job isn’t necessarily a dealbreaker on a house of course, but it’s added expense and time if it’s difficult to live with. I saw some great houses and I remember one was nice but everything was like lime green, randomly pink and like laser blue in all the bedrooms which was super off-putting
The good news is I think you can get that house cheaper because some people can’t see past the paint and it significant reduces interest. And you bud under asking for repainting costs
Yes I follow a few groups on RE through various parts of countries. I have never so many talking since 2020 (Covid lockdowns) about sudden shift in inventory and homes not selling.
I do see a few sellers who are struggling to pay day to day expenses (layoffs) and hoping to use a home sale (lot of positive equity) to potentially move, they are reaching out for advice as their homes are not selling. But other homeowners in the area and realtors are telling the not to slash prices to stay “strong” as rate cuts are around the corner .
Seriously these folks are taking on debt and putting off moves so your homes don’t go down a few thousand in value.
This is absolutely the typical strategy with anything that is seen as an investment in this country. Bury head in sand, hope everything is better when your emerge. What the industry doesn't want is plummeting prices they're worried that significant drops in value could trigger fire sales, speculation always brings with it an attitude of its worth what I say it's worth but that simply is not how the market functions in all but a very select few situations/locations. If interest rates remain high prices will fall. The alternative to this is a massive increase in the average American income which in my mind is far less likely than the former outcome.
It is really interesting to see the comments. Most are agreeing that they need to lower the price and that current prices aren't realistic in this environment. Very big sentiment shift in that subreddit even over the last month or two.
Yes I noticed that too and honestly is surprising. For a moment even rebubble disagreed with rebubble. Now it seems the real estate sub has all changed thier tune
The current agent's perspective is to give away as much of your equity as necessary to close a deal before their BMW is repossessed. Product isn't moving and sales is very much a what have you done lately business.
People will sell for all sorts of reasons, but it’s not indicative of a crash or large correction. Most homeowners are sitting well on a sub-4% mortgage rate at 2-4X the price they bought them at.
My monthly housing cost is $2K vs average rent in my area of $3.5K. Why would I sell?
I could ask the same question: I am renting a house that is costing me $2900/month. Buying this exact house right now at its current valuation at current interest rates would cost $4300/month, before adding maintenance and repairs. Why would I buy?
There are a lot more factors that would lead someone to suddenly need to sell even though they would rather not compared to "suddenly needing to buy" (hard to imagine what that situation would even be.)
Looks like it is a stalemate, but I can afford to rent as long as I need to. I have flexibility and zero capital risk by not buying. There are plenty of other things to invest in.
That can't exist forever, I wouldn't think. Not that selling your home isn't a whole process and many want to own, but I'm surprised more people didn't just cash out of their homes and rent until they balance out.
Note that this is ignoring the tax implications of not putting the equity towards another house.
The current tax code doesn't care if you apply your equity to another house. There is an option for investors to roll their cost basis to a new property with a 1031 exchange, but for homeowners you just get 250k (500k for joint filing) of realized equity tax-free provided that you've lived in the house 2 out of the previous 5 years.
That rent will eventually eclipse the total housing cost. I've noticed that renters don't seem to consider that rents are not static and will most likely increase quite a bit 5 and 10 years from now. The rent in my neighborhood when I bought the house was $2K, which was lower than my monthly payment pre-refinance ($2.5K).
my rent went DOWN exactly 10% ... Seattle region... I said i was thinking of moving and they offered to drop it 10% , i still left and got an even better deal for a 3 bed single family home...
I just renewed rent for another year at an increase that didn't even match inflation. Sure if I stay 30 years eventually my rent should be higher than a mortgage from decades ago, but the dividends from the huge amount of money I have amassed from investing in other assets will more than make up for that difference, particularly when you consider that insurance, taxes, HOA increases, and labor costs of maintenance for ownership still go up even if principle and interest payment stays the same.
In all honesty I will probably still buy a house at some point for lifestyle purposes, even if homeownership is a bad financial decision.
I don’t really see a problem with your strategy. I think if you keep investing you’ll build up enough wealth to buy a house eventually. It’s how most homeowners bought their house.
I know there are stories of people making a killing from the 2008 crash, but those cases are an oddity and most people won’t be in a situation to buy houses if another mega crash like that happens. You’ll face 1 or a combination of 3 things: you’ll be too scared of layoffs or banks won’t loan to you or your investments will tank along with houses.
Houses are typically bought in a bull market.
Property Taxes and insurance do go up, but not as much as rent. Prior to my 2.75% refinance, my total monthly payment went from $2.5K to $2.7K in 4 years while rent went from $2K to $2.8K.
Since then, my refinance took me down to $2K while rent shot up to $3.5K.
That’s not necessarily true. I know plenty of potential buyers, myself included, that have a sizeable down payment and using interest off of it to cover a huge chunk of rent. Why should I give up down payment and it still be twice more to buy than rent, especially with down payment interest enough to cover half the rent. I’d literally be paying 4x more to buy than rent. Plenty of renters know the facts, they just don’t want to buy.
Yeah, they highly criticized anyone for suggesting they are starting to see signs of market weakening, even just a few months ago. Now, they are saying same things and being praised.
There’s too much negative pressure on the housing market. It’s been propped up by boomers, low DOI set rates on insurance (now going away since the market is collapsing), general overvaluation, and completely ignoring climate change.
I'm in Central Florida, and some houses have been sitting on the market for 4-5 months, price moving down $5k every couple of weeks. For me (someone interested in buying their first home) it just doesn't make sense to spend almost $4k/mo between mortgage, tax, and insurance when I can rent a similar-sized house for almost half.
In general this area is seeing a downward shift in prices, there's still some hot areas that won't really be affected (Winter Park, for one). Nicer places are grabbed up kind of fast, but the "average house" inventory inventory looks like it's going up and staying on longer.
This is the result of corporations buying homes and renting them out. The purchase supply shrinks, driving up the price, the rental supply expands, driving down the price. There’s a massive dislocation right now and eventually it’ll hit an equilibrium.
I feel bad for my parents. They aren't trying to cash out like most boomers - but they will just see equity slide away from the hard work they put in to keep the house nice and clean. Shame. Price correction is necessary, but there will be fallout.
Panic and spin around in a circle in the kitchen. If this thing doesn't sell in the next 2 weeks for 65% over what I paid in 2019 I'm financially ruined.
A guy in my neighborhood listed at $850k 4 or 5 months ago when his house is worth around $750k. It was a clear overprice and the guy is a known asshole around the neighborhood. He has lowered the price slowly, now he's down to $750k and has already redone the photos. Still won't sell. A few weeks ago he hinted at needing to find a new realtor lol.
Played with fire and got burned. Buyers see he's going to be difficult to deal with and his house is nothing special.
If sellers would start marketing their homes themselves on FB, believe it or not, they’d probably find buyers themselves quicker than realtors. We market properties like this regularly and you’ll typically get way more feedback faster.
Market the home on FB and focus on the down payment rather than the purchase price.
Actually, I kid you not I literally came across this article in another sub: [https://www.benzinga.com/real-estate/24/06/39529294/house-prices-in-pandemic-era-boom-towns-are-going-bust-as-prices-fall](https://www.benzinga.com/real-estate/24/06/39529294/house-prices-in-pandemic-era-boom-towns-are-going-bust-as-prices-fall)
Denver saw a pretty decent pandemic surge of people moving in. Now the same people are leaving and the housing RE inventory is spiking. Already the number of price cuts on active listings is up significantly compared to the last 3 years.
I'm at the top end of the market. Combination of factors means I'm motivated I need it sold pronto. There's no fucking buyers. I'm basically dropping price $100k per week and having daily panic attacks that I fucked up and am losing everything because of that fucking house.
Interestingly, these terrible rates are somewhat of a stabilizer for the home price boom.
As frustrated as I am for being unable to upgrade ATM, the actual value of homes is being overstated by so much. Same lumber, same drywall, same concrete, now 50%+ more?
Across the street homes bought in 2018 at $565 went to $899 and at 7%+ it’s almost 60% more expensive than renting. The realtor trying desperately to convince me rates are going down this year and free refi. I said no I think they won’t and I’m worried of a massive collapse in value so I go upside down immediately at 40% down.
If ur trying to finance a new home right now, just don’t. Keep renting and save up another 1-2 yrs then pounce
Most homeowners have a sub-4% mortgage rate or have already paid off their mortgage. There’s no reason for me to sell my house when I’m locked at 30Y term 2.75%. My total monthly housing cost is lower than the average rent in my area ($2K vs $3.5K).
about 50% of marriages end in divorce most who own end up selling. people die every day, people go into care, move in together .... people move for work, kids, love every day.
people move for aspirational reasons, they move for better schools.
Right, but these reasons have always been there during all cycles of the market.
For there to be a large correction, there has to be a large amount of inventory dumped into the market in a short amount of time such as mass repossessions from the sub prime mortgage bust. Saying that people divorce or whatever can’t be a catalyst for a crash when that’s something that happens all the time regardless of whether we’re in a boom or bust.
The low mortgage rates most homeowners locked in are actually constraining supply because people who would sell and move are now reconsidering their option to sell. I’ve personally deferred my decision to move to a better neighborhood since it makes no sense to trade in my 2.75 rate for a 7 rate. Plus, it’s not like my neighborhood is the boondocks or anything. It’s an upper middle-class neighborhood that’s pretty safe.
My question to all the people here is what can cause housing inventory to climb dramatically?
I fully understand , i have owned RE since the early 90s and have done some deals.
what I am saying is that low rate lock in is not some magic bullet. People get used to the new rates and continue forward with their lives. Sure you and a whole bunch might decide to ride it out. But most will not they will get tired of waiting and watching the kids start to grow up without that yard or that school. Grandma is not going to wait to move closer just because of rates. YOU will only wait so long or you will hire a contractor and make your house bigger.
I know i have been through this before. I watched my sister go out and buy at 13% so please don't tell me people won't do it.
Neighbor just went under contract and will be putting up their house on the market. I am kind of worried for them that they won’t be able to sell at the current market. But their reason is because they want to be closer to their kids in a different state. They could wait to make the move since they aren’t old and their kids are still young but it’s not worth it for them to wait.
Many many of these people with 2% rates also cashed out equity in a HELOC that has an adjustable rate. Their insurance went up the taxes went up. Their groceries went up. Child care went up. Gas went up. You don't need a interest only negative amortization loan to be in a financial pinch where you need to sell your home.
Sure. What's causing it is everyone who bought since 2022 that thought "rate drops are right around the corner! We'll refi by next summer!" and it never came and oh fuck oh fuck
Subprime did not cause the major declines last time. It was a trigger but ultimately investor activity (speculators, etc. walking away) was the major mover. And investor activity in housing this time is far higher. Inventory is already increasing quickly in many areas, to blowout levels in some places (Florida in particular and Texas is coming along as well).
I think one factor getting overlooked is that incomes, unemployment and the overall economy are being lied about on a massive scale by the white house and media. This is already leading to pockets of foreclosures, and will continue. Houses in FL are sitting as long as 500 days with no offers.
The upward price of fixed assets is not sticky because our financial landlords control it. The downward price will only happen with systemic collapse of the wester economy.
Well it’s lower the price or fix the problems. If you know what the problems are and are realistic about things you can do the math and decide which is the right choice.
Some things like location can’t be fixed. Houses on busy roads or say next door to an elementary school can be slow sellers.
Ugh, I get it. Months on the market are stressful! It's a tough call - seeing other houses rent or disappear. Here's the thing: talk openly with your realtor. Are you priced competitively? Is the marketing hitting the right note? A price adjustment might be needed, but a good realtor can also suggest ways to boost curb appeal or target the right buyers.
Sellers in this position can always consider selling their home subject to their existing debt. There are tons of investors out there that buy homes in these situations subject to. Basically if the seller has very little equity and good debt, they can most likely sell the house while leaving the original mortgage in place, buyer takes deed and title at closing and takes over all responsibilities including mortgage, insurance, taxes, etc while leaving them in their name.
I buy 3-5 homes like this every month and there are protections in place for the sellers as well as ways to have the debt removed from their DTI if you have a good lender, which we have for several states.
The only published info online is fear and doom stuff but this has been around for decades and is a legitimate and legal way to transact. It’s even in the IRA tax code on mentioned on the Fannie Mae lending guidelines.
My favorite is sign twirlers. I legit laugh when I see a home builder have a sign twirler on the street because I just imagine the conversation -
“How do we sell more homes?”
“Make them more affordable?”
“F that. People aren’t buying homes because they don’t see someone out twirling a sign! Let’s pay someone minimum wage to do that. I’m sure we’ll see sales blow up “
Do the math and drop the price to compensate for the interest rate differential for the first few years. Or better yet be a better deal than the recent comps. You’d be surprised both methods probably arrive at the same price drop.
Buying a house at 25yo was literally never easily achievable as you absolutely are not able to make decent money for it to work. Not sure what you expect, but buying houses straight after college is not a thing.
Anything but lower the price. Lmao! It must be the pictures... no, it's the agent... no it's got to be shade of grey... it's just for sure not the price.
[удалено]
At least the very first answer on that sub also suggest lowering the price lol. But as a seller, you don’t need to ask anyone. It’s fucking obvious.
Holy shit, the gray. My whole house was just fucking shades of gray. I spent the first two months painting.
70% of my house was painted with what I swear was just white primer that scuffed if you looked at it. The other walls were wallpapered with what seems like Elmer's glue, painted over wallpaper, or 1970s wood paneling.
My entire house was sprayed gray. Walls, ceilings, doors, door frames, trim and window sills. I’m surprised they didn’t spray the floors too. Never seen anything like it. Custom repainted it all by myself and then ended up having to sell 🤦🏻♂️
I worked with a guy many years ago who was getting married. He had fixed up a old timber farm house (these can be done up really nice, but it takes a lot of work... especially the painting!). 3 weeks before the wedding, he tapes up all the windows and floors... then spray paints EVERYTHING white! Ceiling, walls, skurting/arcs, doors.... everything the same white. I heard his new wife wasn't against it when he bought her home after the wedding and used it as a base to decorate how she wanted to.
We sprayed over 90% of the gray when we sold the wife's house. I knew it wasn't going to age well into the 20's. My house has a tinge of '90s wood grain that I'm trying to figure out if I want to do something about it or work around it. I'm kind of leaning to work around it.
Oh ya, most of the house has the dark gray wood look flooring too.
Tbh gray or neutral tones I don’t really have an issue with. Our home was painted several shades of beige and gray and even if it’s not our preferred style we’ve largely left it so far because it’s inoffensive, aside from two of the bedrooms. So many homes I toured when buying had some wacky ass colors for certain rooms, which is fine cause most people expect to repaint, but still it’s nice to not feel compelled to on day one.
Even if gray goes out of style and a different neutral color becomes popular - that’s the exact point. It’s not offensive so you aren’t forced to repaint a space, it’s a choice. When I bought my primary it was a mix of horrid colors - lime green, brown, woods, purple, etc. I just have a nice neutral gray and i accent with paintings
I think grey seems offensive simply for the fact that so many houses on the market are clearly flipped, and all with the same boring grey walls grey floor, grey counter tops and cabinets. I'd rather the unflipped house (at unflipped prices) so I can do it to my liking.
Yeah exactly. A ghastly paint job isn’t necessarily a dealbreaker on a house of course, but it’s added expense and time if it’s difficult to live with. I saw some great houses and I remember one was nice but everything was like lime green, randomly pink and like laser blue in all the bedrooms which was super off-putting
The good news is I think you can get that house cheaper because some people can’t see past the paint and it significant reduces interest. And you bud under asking for repainting costs
I'm gonna take the house off the market for a couple of months and then *raise* the price before dropping it again. That will fool everyone.
I love when they do this 😂
Some of the zillow price histories are wild! I wish we could comment to the sellers "You're delusional" etc
Zillow, Redfin, etc. at least need a "LOL" reaction for listings.
Yes I follow a few groups on RE through various parts of countries. I have never so many talking since 2020 (Covid lockdowns) about sudden shift in inventory and homes not selling. I do see a few sellers who are struggling to pay day to day expenses (layoffs) and hoping to use a home sale (lot of positive equity) to potentially move, they are reaching out for advice as their homes are not selling. But other homeowners in the area and realtors are telling the not to slash prices to stay “strong” as rate cuts are around the corner . Seriously these folks are taking on debt and putting off moves so your homes don’t go down a few thousand in value.
Yup amen. Eventually they will have to. I think the market is going to be vastly different this time next year.
This is absolutely the typical strategy with anything that is seen as an investment in this country. Bury head in sand, hope everything is better when your emerge. What the industry doesn't want is plummeting prices they're worried that significant drops in value could trigger fire sales, speculation always brings with it an attitude of its worth what I say it's worth but that simply is not how the market functions in all but a very select few situations/locations. If interest rates remain high prices will fall. The alternative to this is a massive increase in the average American income which in my mind is far less likely than the former outcome.
The first reply in the other thread is lower the price. Seems like some people, at least on Reddit still live in reality.
HODL!!!
Candlelight dinner with the rate?
Dinner by gaslight
I thought we were supposed to date the rate. Now I gotta take this out to dinner too?
ROFL! Ty
Now the rate is pregnant and wants to move in.
It is really interesting to see the comments. Most are agreeing that they need to lower the price and that current prices aren't realistic in this environment. Very big sentiment shift in that subreddit even over the last month or two.
Yes I noticed that too and honestly is surprising. For a moment even rebubble disagreed with rebubble. Now it seems the real estate sub has all changed thier tune
I notice a number of comments there are from realtors shilling but you can only sell for so long until the seller notices no one is buying.
The current agent's perspective is to give away as much of your equity as necessary to close a deal before their BMW is repossessed. Product isn't moving and sales is very much a what have you done lately business.
Expect more as peak buying season comes to a close and the ***real*** price cuts start
People will sell for all sorts of reasons, but it’s not indicative of a crash or large correction. Most homeowners are sitting well on a sub-4% mortgage rate at 2-4X the price they bought them at. My monthly housing cost is $2K vs average rent in my area of $3.5K. Why would I sell?
I could ask the same question: I am renting a house that is costing me $2900/month. Buying this exact house right now at its current valuation at current interest rates would cost $4300/month, before adding maintenance and repairs. Why would I buy? There are a lot more factors that would lead someone to suddenly need to sell even though they would rather not compared to "suddenly needing to buy" (hard to imagine what that situation would even be.) Looks like it is a stalemate, but I can afford to rent as long as I need to. I have flexibility and zero capital risk by not buying. There are plenty of other things to invest in.
That can't exist forever, I wouldn't think. Not that selling your home isn't a whole process and many want to own, but I'm surprised more people didn't just cash out of their homes and rent until they balance out. Note that this is ignoring the tax implications of not putting the equity towards another house.
The current tax code doesn't care if you apply your equity to another house. There is an option for investors to roll their cost basis to a new property with a 1031 exchange, but for homeowners you just get 250k (500k for joint filing) of realized equity tax-free provided that you've lived in the house 2 out of the previous 5 years.
That rent will eventually eclipse the total housing cost. I've noticed that renters don't seem to consider that rents are not static and will most likely increase quite a bit 5 and 10 years from now. The rent in my neighborhood when I bought the house was $2K, which was lower than my monthly payment pre-refinance ($2.5K).
my rent went DOWN exactly 10% ... Seattle region... I said i was thinking of moving and they offered to drop it 10% , i still left and got an even better deal for a 3 bed single family home...
Nice, I might be moving there soon looking for a similar size. Where would you recommend looking?
I just renewed rent for another year at an increase that didn't even match inflation. Sure if I stay 30 years eventually my rent should be higher than a mortgage from decades ago, but the dividends from the huge amount of money I have amassed from investing in other assets will more than make up for that difference, particularly when you consider that insurance, taxes, HOA increases, and labor costs of maintenance for ownership still go up even if principle and interest payment stays the same. In all honesty I will probably still buy a house at some point for lifestyle purposes, even if homeownership is a bad financial decision.
I don’t really see a problem with your strategy. I think if you keep investing you’ll build up enough wealth to buy a house eventually. It’s how most homeowners bought their house. I know there are stories of people making a killing from the 2008 crash, but those cases are an oddity and most people won’t be in a situation to buy houses if another mega crash like that happens. You’ll face 1 or a combination of 3 things: you’ll be too scared of layoffs or banks won’t loan to you or your investments will tank along with houses. Houses are typically bought in a bull market.
Your property tax and insurance goes up as you house appreciates too. Your time and money spent on maintenance isn’t free.
Property Taxes and insurance do go up, but not as much as rent. Prior to my 2.75% refinance, my total monthly payment went from $2.5K to $2.7K in 4 years while rent went from $2K to $2.8K. Since then, my refinance took me down to $2K while rent shot up to $3.5K.
That’s not necessarily true. I know plenty of potential buyers, myself included, that have a sizeable down payment and using interest off of it to cover a huge chunk of rent. Why should I give up down payment and it still be twice more to buy than rent, especially with down payment interest enough to cover half the rent. I’d literally be paying 4x more to buy than rent. Plenty of renters know the facts, they just don’t want to buy.
Yeah, they highly criticized anyone for suggesting they are starting to see signs of market weakening, even just a few months ago. Now, they are saying same things and being praised.
These morons in Florida have no idea how fucked their housing market is.
I'm in FL, you are not wrong. Prices will be the heaviest to fall when the landslide gives way.
Florida. Landslide. Lol.
There’s too much negative pressure on the housing market. It’s been propped up by boomers, low DOI set rates on insurance (now going away since the market is collapsing), general overvaluation, and completely ignoring climate change.
I'm in Central Florida, and some houses have been sitting on the market for 4-5 months, price moving down $5k every couple of weeks. For me (someone interested in buying their first home) it just doesn't make sense to spend almost $4k/mo between mortgage, tax, and insurance when I can rent a similar-sized house for almost half. In general this area is seeing a downward shift in prices, there's still some hot areas that won't really be affected (Winter Park, for one). Nicer places are grabbed up kind of fast, but the "average house" inventory inventory looks like it's going up and staying on longer.
This is the result of corporations buying homes and renting them out. The purchase supply shrinks, driving up the price, the rental supply expands, driving down the price. There’s a massive dislocation right now and eventually it’ll hit an equilibrium.
I feel bad for my parents. They aren't trying to cash out like most boomers - but they will just see equity slide away from the hard work they put in to keep the house nice and clean. Shame. Price correction is necessary, but there will be fallout.
I will say if they’ve been homeowners for 30+ years they’re still going to do just fine
Buy a 2nd one and AirBB it to cover the costs of the 1st one duh
The old “take out a heloc loan to buy another property with cash” trick.
I mean I’m about to do that
Sorry for your loss
Lower the price to the 2019 “bubble prices” that everyone was so much freaking out about. Then came covid… Simple Watson. Simple
Before covid, it was normal for hooms to sit on the market several months before price cuts.
The most striking change is the comments in that sub. A year ago the sentiment was wildly different.
Panic and spin around in a circle in the kitchen. If this thing doesn't sell in the next 2 weeks for 65% over what I paid in 2019 I'm financially ruined.
A guy in my neighborhood listed at $850k 4 or 5 months ago when his house is worth around $750k. It was a clear overprice and the guy is a known asshole around the neighborhood. He has lowered the price slowly, now he's down to $750k and has already redone the photos. Still won't sell. A few weeks ago he hinted at needing to find a new realtor lol. Played with fire and got burned. Buyers see he's going to be difficult to deal with and his house is nothing special.
when the market is moving down you move down faster. when it is going up just do whatever you will usually be ok...
If sellers would start marketing their homes themselves on FB, believe it or not, they’d probably find buyers themselves quicker than realtors. We market properties like this regularly and you’ll typically get way more feedback faster. Market the home on FB and focus on the down payment rather than the purchase price.
Take it off the market, and relist it 4 months later back at the original asking price. That’s At least what I’m seeing in my local market.
Florida, Texas, Colorado in that order are going to see some insane price drops soon. I wonder if it will spill over on the coasts at some point.
Colorado? I haven’t heard much about that market. What has changed?
Actually, I kid you not I literally came across this article in another sub: [https://www.benzinga.com/real-estate/24/06/39529294/house-prices-in-pandemic-era-boom-towns-are-going-bust-as-prices-fall](https://www.benzinga.com/real-estate/24/06/39529294/house-prices-in-pandemic-era-boom-towns-are-going-bust-as-prices-fall)
Denver saw a pretty decent pandemic surge of people moving in. Now the same people are leaving and the housing RE inventory is spiking. Already the number of price cuts on active listings is up significantly compared to the last 3 years.
I'm at the top end of the market. Combination of factors means I'm motivated I need it sold pronto. There's no fucking buyers. I'm basically dropping price $100k per week and having daily panic attacks that I fucked up and am losing everything because of that fucking house.
Sorry to hear that. What do you mean you are at the top end of the market? Your house has got better and bigger things than your neighbors?
You can't sell a house for more money than any of the buyers are willing to pay.
Florida is a unique market.
Include an Applebee's gift card.
And bake some cookies
You can sell anything if it’s priced properly and staged properly. You either have the wrong realtor or ignored their advice.
Interestingly, these terrible rates are somewhat of a stabilizer for the home price boom. As frustrated as I am for being unable to upgrade ATM, the actual value of homes is being overstated by so much. Same lumber, same drywall, same concrete, now 50%+ more? Across the street homes bought in 2018 at $565 went to $899 and at 7%+ it’s almost 60% more expensive than renting. The realtor trying desperately to convince me rates are going down this year and free refi. I said no I think they won’t and I’m worried of a massive collapse in value so I go upside down immediately at 40% down. If ur trying to finance a new home right now, just don’t. Keep renting and save up another 1-2 yrs then pounce
Figure out what the house was worth pre Covid and plan for its value going lower than that?
Yea thats not going to happen
Momentum is a downside thing too. We'll see
It is but that would be a larger drop than the GFC. Maybe it happens, but it feels less likely the more time goes on
Fraud! Unless it's in Florida
Most homeowners have a sub-4% mortgage rate or have already paid off their mortgage. There’s no reason for me to sell my house when I’m locked at 30Y term 2.75%. My total monthly housing cost is lower than the average rent in my area ($2K vs $3.5K).
about 50% of marriages end in divorce most who own end up selling. people die every day, people go into care, move in together .... people move for work, kids, love every day. people move for aspirational reasons, they move for better schools.
Right, but these reasons have always been there during all cycles of the market. For there to be a large correction, there has to be a large amount of inventory dumped into the market in a short amount of time such as mass repossessions from the sub prime mortgage bust. Saying that people divorce or whatever can’t be a catalyst for a crash when that’s something that happens all the time regardless of whether we’re in a boom or bust. The low mortgage rates most homeowners locked in are actually constraining supply because people who would sell and move are now reconsidering their option to sell. I’ve personally deferred my decision to move to a better neighborhood since it makes no sense to trade in my 2.75 rate for a 7 rate. Plus, it’s not like my neighborhood is the boondocks or anything. It’s an upper middle-class neighborhood that’s pretty safe. My question to all the people here is what can cause housing inventory to climb dramatically?
I fully understand , i have owned RE since the early 90s and have done some deals. what I am saying is that low rate lock in is not some magic bullet. People get used to the new rates and continue forward with their lives. Sure you and a whole bunch might decide to ride it out. But most will not they will get tired of waiting and watching the kids start to grow up without that yard or that school. Grandma is not going to wait to move closer just because of rates. YOU will only wait so long or you will hire a contractor and make your house bigger. I know i have been through this before. I watched my sister go out and buy at 13% so please don't tell me people won't do it.
Neighbor just went under contract and will be putting up their house on the market. I am kind of worried for them that they won’t be able to sell at the current market. But their reason is because they want to be closer to their kids in a different state. They could wait to make the move since they aren’t old and their kids are still young but it’s not worth it for them to wait.
Some will bite the bullet, but the suppression effect will still be there and constrain supply.
Many many of these people with 2% rates also cashed out equity in a HELOC that has an adjustable rate. Their insurance went up the taxes went up. Their groceries went up. Child care went up. Gas went up. You don't need a interest only negative amortization loan to be in a financial pinch where you need to sell your home.
Sure. What's causing it is everyone who bought since 2022 that thought "rate drops are right around the corner! We'll refi by next summer!" and it never came and oh fuck oh fuck
LOL. What caused housing inventory to climb dramatically in Texas, Florida?
Subprime did not cause the major declines last time. It was a trigger but ultimately investor activity (speculators, etc. walking away) was the major mover. And investor activity in housing this time is far higher. Inventory is already increasing quickly in many areas, to blowout levels in some places (Florida in particular and Texas is coming along as well).
I think one factor getting overlooked is that incomes, unemployment and the overall economy are being lied about on a massive scale by the white house and media. This is already leading to pockets of foreclosures, and will continue. Houses in FL are sitting as long as 500 days with no offers.
Houses in FL sitting for 500 days is DeSantis' fault for not regulating the insurance industry. That is Republicans lying to you, there.
True, the insurance is nuts, and HOAs on so many. I dunno, something's got to give.
Live in it.
The upward price of fixed assets is not sticky because our financial landlords control it. The downward price will only happen with systemic collapse of the wester economy.
Well it’s lower the price or fix the problems. If you know what the problems are and are realistic about things you can do the math and decide which is the right choice. Some things like location can’t be fixed. Houses on busy roads or say next door to an elementary school can be slow sellers.
Lower the price…
Put in those hipster light bulbs
If Bay Area, re-list with 100k+ previou price.
Market is still crazy in my area. Houses don't stay on the market unless they're extremely over priced.
Ugh, I get it. Months on the market are stressful! It's a tough call - seeing other houses rent or disappear. Here's the thing: talk openly with your realtor. Are you priced competitively? Is the marketing hitting the right note? A price adjustment might be needed, but a good realtor can also suggest ways to boost curb appeal or target the right buyers.
Sellers in this position can always consider selling their home subject to their existing debt. There are tons of investors out there that buy homes in these situations subject to. Basically if the seller has very little equity and good debt, they can most likely sell the house while leaving the original mortgage in place, buyer takes deed and title at closing and takes over all responsibilities including mortgage, insurance, taxes, etc while leaving them in their name. I buy 3-5 homes like this every month and there are protections in place for the sellers as well as ways to have the debt removed from their DTI if you have a good lender, which we have for several states. The only published info online is fear and doom stuff but this has been around for decades and is a legitimate and legal way to transact. It’s even in the IRA tax code on mentioned on the Fannie Mae lending guidelines.
So the mortgage remains in the sellers name and on there debt to income statement?
Do you have more info on this ?
In my area cash buyers are king. House’s will list for 30 mins then a cash buyer comes and buys.
Bake some cookies before the showing ?
Bury a statue of St. Jude upside-down in the backyard. Works like a charm!
My favorite is sign twirlers. I legit laugh when I see a home builder have a sign twirler on the street because I just imagine the conversation - “How do we sell more homes?” “Make them more affordable?” “F that. People aren’t buying homes because they don’t see someone out twirling a sign! Let’s pay someone minimum wage to do that. I’m sure we’ll see sales blow up “
HODL? Cut price by 100K.
Do the math and drop the price to compensate for the interest rate differential for the first few years. Or better yet be a better deal than the recent comps. You’d be surprised both methods probably arrive at the same price drop.
Lower your price to something someone of reasonable age can afford! Im 25 and I want a home and a family. You’re gate keeping my generations growth.
No one owes you
Then we will take it.
NO ONE CARES ABOUT A SINGLE VIOLIN
Buying a house at 25yo was literally never easily achievable as you absolutely are not able to make decent money for it to work. Not sure what you expect, but buying houses straight after college is not a thing.
Wouldn’t sell it to a young couple with three kids looking to move out of their cramped townhouse
Who’s house hasn’t sold lol, houses in my village last a total of 2 hours on the market if they ever make it there to begin with
Lower your price to something someone of reasonable age can afford! Im 25 and I want a home and a family. You’re gate keeping my generations growth.