"Plummet 22%" comes off as extremely alarmist.
Median sales price dropped 1.8%. The number of sales dropped 22%.
It's a signal, but of what? That's uncertain.
San Francisco Home Prices Fell for the First Time in Four Years in March
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Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#12The article seems to imply some meltdown in housing is around the corner, but it seems more like the housing market is just leveling off as a result of market forces. You can only drive home prices so high before there aren't enough people who can afford them anymore. Hopefully that means that rent prices will also level off in the area in the near future.
That's not exactly true. A lot of REIs are built on complex structures. The SF estate market might be fueling other investments. Once one starts to collapse it can have a domino effect. Basically if investors were expecting 10% annual return and you tell them this year might be 1-2% they'll take that money and move it elsewhere. Now you have to raise money or sell. When I used to live in downtown Miami there were hig…
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How can they take that money and move it somewhere? Most such investment contracts don't allow it. Am I missing something?
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#13As a Brooklyn resident (who rents), I hope this trend picks up steam and continues. Maybe I could be a homeowner some day after all!
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#14A bit of an anecdote because the article mentions my town specifically - Tacoma:
We put our house on the market Friday, April 8th, a bit below the "redfin estimate" - I saw it had gone live by 11am and we already had an interested party set up a viewing by 12pm. We showed the house 11 times by Monday morning and had 5 offers, some 12k above asking price. We accepted an offer by Tuesday (April 12). My head is still spinning from how fast this was and how many calls we were getting for appointments for viewing. This in a central Tacoma location, not exactly prime location (like the Proctor District or Stadium). We only had 3 other homes as comps in the area (1 mile radius).
Port Orchard / Gig Harbor area is very low on inventory too, which is where we are moving (Port Orchard, we looked in GH though).
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#15The article seems to imply some meltdown in housing is around the corner, but it seems more like the housing market is just leveling off as a result of market forces. You can only drive home prices so high before there aren't enough people who can afford them anymore. Hopefully that means that rent prices will also level off in the area in the near future.
From the article:
>> "...historically low inventory"
>> "...many sellers are sitting this year out."
>> "...The median sale price ... fell by 1.8 percent..."
The article's authors are confused. Their explanation for falling prices consists entirely of "Supply is down."
That's exactly the opposite of how supply, demand, and prices are related. If they wanted to claim that low prices are scaring sellers out of the market, since those sellers are hoping for a future rebound in prices, I might believe it. But the article claims the causality is going the other way.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#16A bit of an anecdote because the article mentions my town specifically - Tacoma: We put our house on the market Friday, April 8th, a bit below the "redfin estimate" - I saw it had gone live by 11am and we already had an interested party set up a viewing by 12pm. We showed the house 11 times by Monday morning and had 5 offers, some 12k above asking price. We accepted an offer by Tuesday (April 12). My head is still sp…
This plays out daily in hot real estate markets. I've been casually observing the Boston/Cambridge market and I have to scratch my head when I see properties on the market for only a few days and agents demanding offers by 2 days after the open house. Typically, I see listed on Thursday, OH Sat/Sun, offers due Tuesday evening.
If I were a seller I'd think that we priced the property too low, then again I can imagine sellers just want it over and done with and who cares when it's the difference of locking in 100% appreciation or 108% appreciation.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#17A bit of an anecdote because the article mentions my town specifically - Tacoma: We put our house on the market Friday, April 8th, a bit below the "redfin estimate" - I saw it had gone live by 11am and we already had an interested party set up a viewing by 12pm. We showed the house 11 times by Monday morning and had 5 offers, some 12k above asking price. We accepted an offer by Tuesday (April 12). My head is still sp…
The entire Puget Sound is absolutely nuts right now - Friends put an offer on a 2BR1BA listed at 470, they were willing to escalate to 540, the house, now pending, went for 675 with three offers going above 600 and had a total of 20 written offers on it.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#18As a Brooklyn resident (who rents), I hope this trend picks up steam and continues. Maybe I could be a homeowner some day after all!
As a foreigner, I don't understand this attitude. Why would you want all your wealth to be invested in a single leveraged asset that's also depreciating, requires your constant attention and ties you to a single locale?
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#19As a Brooklyn resident (who rents), I hope this trend picks up steam and continues. Maybe I could be a homeowner some day after all!
As a foreigner, I don't understand this attitude. Why would you want all your wealth to be invested in a single leveraged asset that's also depreciating, requires your constant attention and ties you to a single locale?
Because it means you don't have to pay rent after you retire.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#20A bit of an anecdote because the article mentions my town specifically - Tacoma: We put our house on the market Friday, April 8th, a bit below the "redfin estimate" - I saw it had gone live by 11am and we already had an interested party set up a viewing by 12pm. We showed the house 11 times by Monday morning and had 5 offers, some 12k above asking price. We accepted an offer by Tuesday (April 12). My head is still sp…
This plays out daily in hot real estate markets. I've been casually observing the Boston/Cambridge market and I have to scratch my head when I see properties on the market for only a few days and agents demanding offers by 2 days after the open house. Typically, I see listed on Thursday, OH Sat/Sun, offers due Tuesday evening. If I were a seller I'd think that we priced the property too low, then again I can imagine…
Yeah, I'm pretty sure we could have waited it out and gotten other, higher offers. We actually chose to pick one that had a longer closing period (the house we wanted is occupied with people that want their kids to finish the school year), and with a dog and a toddler, the constant viewings were pretty inconvenient, enough so I'm happy at a lower price just to get it over with.