The housing market is starting to crack – Sellers are cutting prices
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Re: The housing market is starting to crack – Sellers are cutting prices
#2Good.
Re: The housing market is starting to crack – Sellers are cutting prices
#3https://archive.is/908kf
and
Non paywalled article: https://finance.yahoo.com/news/housing-market-starting-crack...
Re: The housing market is starting to crack – Sellers are cutting prices
#4I've noticed this anecdotally over the past few weeks in my town. After a couple of years of houses being listed on Thursday, shown over the weekend, in-contract for above asking price the following Tuesday, houses have finally begun to sit on the market for several weeks. And I've seen gasp a couple of asking price reductions. Too soon to tell if this is the beginning of a minor correction or a major bubble burst, but it definitely feels like we've entered a new phase.
Re: The housing market is starting to crack – Sellers are cutting prices
#5[deleted]
Re: The housing market is starting to crack – Sellers are cutting prices
#6Good news — housing prices are becoming more affordable.
Re: The housing market is starting to crack – Sellers are cutting prices
#7In the 20 or so years I have lived on a small dead-end street with about 16 homes, and where homes that went on the market sold within the first three days and sometimes the first three hours, it has only been in the last 60 days that I have seen a house where the sellers have twice cut the price by greater than 10% each time and the house yet languishes unsold.
Re: The housing market is starting to crack – Sellers are cutting prices
#8I've noticed this anecdotally over the past few weeks in my town. After a couple of years of houses being listed on Thursday, shown over the weekend, in-contract for above asking price the following Tuesday, houses have finally begun to sit on the market for several weeks. And I've seen gasp a couple of asking price reductions. Too soon to tell if this is the beginning of a minor correction or a major bubble burst, b…
I think that was the main reason for higher interest rates -- it makes the monthly payments higher, which pushes down the total home price. But it only works if there is inventory. And inventory only happens when people are in a "forced sell" position, such as needing to relocate for their job (back to office push for example). A lack of inventory typically will also spur on new construction, but even in areas where construction can happen there is the compounding issue of higher timber prices. So with lumber prices coming down, that should relieve the inventory shortage (again, in areas where land isn't too high and new builds are allowed to happen).
The problem I have with this is that regular people that have to mortgage the house don't get any better deal (higher interest == higher monthly payments), but the forced price reduction does give a better deal to anyone who can pay cash (investors for example).
Re: The housing market is starting to crack – Sellers are cutting prices
#9Last year the market tanked pretty hard coming into November and December.
Re: The housing market is starting to crack – Sellers are cutting prices
#10Good news — housing prices are becoming more affordable.
Yes, but most home affordability is in terms of monthly payment. These price drops are probably delayed reaction to the interest rate increases from the past few months.