Good news for homebuyers: The housing market is showing signs of ‘normalizing'
A new report from Realtor.com says that the housing market is tipping in the buyers' court as listing price growth slows, and inventory grows.
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The housing market is showing signs of ‘normalizing,’ according to a new report.
The latest monthly report by Realtor.com, which tracks the housing market as of December, said that the number of home listings were growing and were also spending more time on the market.
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The active inventory number is in part increasing as more homes spend a longer time on the market.
According to Realtor.com, the typical home spent 67 days on the market, which is 11 days more than it did over the same period last year.
Homes that spent the longest time on the market were in Raleigh, Phoenix, and Las Vegas.
Prices have also begun to reflect the weakness in demand. According to Realtor.com, home price growth fell to single digits for the first time since December 2021.
In December 2022, the median list price in the U.S. was $400,000. That was only 8.4% more than last year.
Across the country, about 14% of active listings saw their prices slashed in December.
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In our area search a group of pros flock to the foreclosure/sheriff sales. They walk in with several million pre funded having already agreed to the you bid property 1,4, 8, 10.... you bid 2,3 &5, I'll bid the rest.. It seems like its one pro on each vs. the general public minimally funded and not as confident. To win you have go over the pros price point...
Is outbidding a knowable pro a victory?
And aren’t people still moving to Florida? My understanding is Florida is one of the least affected by the downturn.Sample Size of One Observation:
The house nearest to mine was put on the market for $940K five months ago. The nice folks who built it only lived in it one year. Illness.
Asking price dropped to $750K. I've not seen anyone even looking at it.
It is the sudden toxic mix of interest rate rise*** coupled with runaway inflation.
***The monthly payment on a $950K 30yr loan with a $200,000 down payment is $5,314.03
That's $178 PER DAY to live in your house.
Who the hell can afford such a staggering levy every month for 30 years? Not many.
Dropping the price to $750K with $200,000 down (who has that kinda cash?) gives you an easypeasy monthly payment of $4,195.29
And by the time the house is all yours (except for taxes) you will have paid $1,510,303.34 for the house.
Those hard numbers are why folks can come to Floriduh and wind up in a trailer park or condo. Stuff don't be sellin' mang.
There it is. ^^^^^^^^^^^^^^^^^I want to live in a Quonset or container home with few neighbors or problems and even lower taxes. Low maintenance is also a priority. Low quality new appliances at all price points are now an issue. Cheap crap from China and Mexico are ruining this country.
In my neck of the woods these sales are pretty much worthless. The sales basically mean you buy the home along with the mortgage meaning the buyer is tasked with evicting the current occupants/mortgagees. It can b e a very tough nut to deal with these people as they have no intention of moving without strenuous court battles that they seem quite adept at using to their advantage. Depending on the judge these things can take years to work out meanwhile the tenants take their viscous feelings out on the property. You would be amazed at the deliberate damage these people do the places. Things like filling the basement drains with concrete then turning on the water full blast, stripping the wiring and plumbing out and other assorted things that can be very expensive who then call the governing bodies getting the place condemned.Curious if anyone has experience buying at sheriff sales. How did it go? Smooth sailing or problems?
The $68 billion Blackstone Real Estate Income Trust (BREIT) has failed to stem soaring redemption requests from high-net-worth investors, Blackstone President Jonathan Gray told Financial Times in an interview.
Gray said it was "a little early" to say redemption requests of the nontraded real-estate investment trust were slowing.
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BREIT gives wealthy clients exposure to a portfolio of commercial real estate properties such as apartment buildings, office towers, and warehouses, but how the investment firm structures product on nontradeable markets opens up liquidity risks in periods of economic turmoil.
The ultimate fear is that money managers with clients in BREIT all ask for their cash back at once. Though that hasn't happened, Blackstone has had enough redemption requests to implement a redemption cap to prevent a further run. This creates a vicious feedback doom loop of anxiety for investors.
Skyrocketing interest rates through most of 2022 put some much-needed pressure on the housing market after home prices hit record highs across the nation. However, since December, mortgage rates have been on a steady decline during the first month of the new year. Even so, many economists remain mixed about whether home prices will continue to decelerate throughout 2023—or even drop at all.
For one, the nation’s overall housing supply remains limited, as those who purchased homes in recent years at extremely low mortgage rates are staying put. In addition, new home construction fell again in December, adding to the longstanding inventory problem. Tight inventory has kept prices from substantially dropping off, making homes still unaffordable for many, especially first-time homebuyers.
Yet, even though home prices remain high year-over-year (YOY), they’re not as eye-popping as they were in early 2022. But how far home prices dip in 2023 will likely depend on where mortgage rates go.
As we begin to move through 2023, housing experts maintain a watchful eye on the economy, which continues to be pulled in all directions by high inflation, steep interest rates, ongoing geopolitical uncertainties and recession fears, to name a few.
Nevertheless, there are indicators that a housing market correction is underway. For one, mortgage rates are showing signs of ease, with rates now less than double what they were a year ago.
And after a couple of years of a meteoric rise, home prices seem to be coming down to Earth, albeit slowly, making it difficult for many homebuyers to access affordable housing.
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Socialism writ large:On the local front.
Thousands in PA in limbo as mortgage relief stumbles
Pennsylvania homeowners face months of delays, risk utility shut-offs as a $350 million state assistance program struggles to get the money out.www.spotlightpa.org
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again?
The housing market might finally be entering a transitional phase. Summer sales have been tepid thus far, but there are signs that activity could heat up by the end of the summer as mortgage rates plunge to their lowest levels in roughly 15 months and much-needed resale inventory continues to entwww.forbes.com
... with big numbers being thrown around about how many people have left Silicon Valley and San Francisco. The City of San Francisco alone lost about 56,000 residents, or about 6.3% of its population, in the period of 2020 through 2022, according to Census data, even as about 12,000 new housing units were completed over the same period.
The median price in the nine-county Bay Area plunged by another 8% in January from December, by 17% year-over-year, and by 35%, or by $540,000, in 10 months from the crazy peak in March 2022, from $1.54 million to $1.00 million, according to the California Association of Realtors.
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Looks like the tech industry layoffs are having an impact on California real estate...
I've seen examples of situations like this where the new buyer offers to pay the tenants to leave. It would probably need to be agreed on ahead of time (before buying the property), but offering enough so that they can cover security deposit and a few months rent in a new place takes a lot of uncertainty away from the tenants. And is probably cheaper than a drawn out legal battle.In my neck of the woods these sales are pretty much worthless. The sales basically mean you buy the home along with the mortgage meaning the buyer is tasked with evicting the current occupants/mortgagees. It can b e a very tough nut to deal with these people as they have no intention of moving without strenuous court battles that they seem quite adept at using to their advantage. Depending on the judge these things can take years to work out meanwhile the tenants take their viscous feelings out on the property. You would be amazed at the deliberate damage these people do the places. Things like filling the basement drains with concrete then turning on the water full blast, stripping the wiring and plumbing out and other assorted things that can be very expensive who then call the governing bodies getting the place condemned.
Some people logically know that they bit off more than they could chew, a job loss or whatever and recognize it is not the houses fault but so many want someone or thing other than themselves to blame and naturally there is the house sitting there with no protection.
Be careful and investigate all angles and if its basically the mortgage you are buying recognize the difficulties in obtaining a foreclosure plus possession.
(BTW don't forget if the President puts a moratorium on housing evictions/foreclosures the buyer at that sale becomes the bag holder for the whole mess...talk about a negative cash flow)
Anyway just sayin...
I've seen examples of situations like this where the new buyer offers to pay the tenants to leave. It would probably need to be agreed on ahead of time (before buying the property), but offering enough so that they can cover security deposit and a few months rent in a new place takes a lot of uncertainty away from the tenants. And is probably cheaper than a drawn out legal battle.
I know this because I follow them so as to file a garnishment of wage claims against them.
I live in Illinois that is a hellhole for landlords. The eviction process is long and lengthy and the biggest problem is to bite the bullet and move on. These tenants can be quite crafty as they work the system to their advantage. A good sob story with promises tends to give the a month or two when the landlord is hoping to evade the Illinois court morass. I fell for that once years ago and never again. Miss the rent by two weeks and the system goes into play. A real shame in a lot of ways but that's how life is here.What state are you in and how does this work out?
Squatters do have rights particularly in certain states. The big issue is the police take the easy way out and wont arrest for trespassing maintaining it is a "civil matter". Thats how it is in Illinois and I sorta suspect it is that way in a liberal state like Washington as wellSquatters who took over a Washington state property during the coronavirus pandemic were finally removed by a SWAT team this week only to return to the property shortly after, according to the property owner.
Washington property owner says squatters returned after SWAT raid: 'I'm going to give up'
A property owner in Washington state says that squatters have returned to her property after a police raid that yielded 5 arrests as part of a vehicle trafficking investigation.www.foxnews.com
Something I never gave too much thought to. You drop your car off for repair. Shop owner loses shop, splits the scene, property owner takes possession of property - what happens to customers cars / trucks?
Customer Cars Towed After Body Shop Loses Lease
Feb 19, 2023
It was more than ten customers. 9:39
The people with the titles are the owners.
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