The Exuberance That Permeated These Markets Is Being Replaced By Fear

Abstract

Last month's median was a $30,000 drop from the all-time high of $450,000 recorded in May. 'Sellers are still getting market value, but what they aren't seeing is offers 20 to 30% above list price,' said Tom Hormel, 2023 president-elect for the Spokane Association of Realtors. "For a second straight month, the median price for an existing home has declined, according to a report released today by the Las Vegas Realtors trade group. 'We're seeing a shift in the housing market,' Brandon Roberts, president of Las Vegas Realtors, said in a statement. 'We haven't seen prices slow down like this in several years, and we haven't had this many homes available for sale since 2019.' At the end of July, the Las Vegas Realtors report showed just over 7,300 homes listed without an offer, up 144% from July 2021." The Idaho Statesman. "A two-month supply of housing stock as seen in the Bend-Redmond area last month might not sound like a lot, but it's the highest level in two years, Beacon Appraisal Group reported in the July Beacon Report. Redmond's median home sales price dipped by $25,000 in July, but the $505,000 median sales price is just $23,000 below the record $538,000 figure set in April." The Ahwatukee Foothills News in Arizona. While we cannot forecast accurately several months out, it would be reasonable based on current trends to expect significant declines in average prices, median prices and average price per square foot by the end of 2022. "In the heat of summer, Houston's housing market is cooling down, a bit, as record high prices and rising interest rates have taken their toll. It reflects a national trend that sees a growing number of homes on the market and pickier buyers. 'Whenever they're in escrow, maybe they see a rate hike; maybe they think home prices will go down,' says Charlie Mackey, from real estate broker Sundae, 'They feel some sense of buyer's remorse because of the inventory and because of the mortgage rate volatility.'" The Los Angeles Times in California. "Katy Perry is officially out of Beverly Crest. The pop star just unloaded the main house for $18 million - the same price she paid for it in 2017." The Detroit Free Press. "The real estate market continues its downward trend in Mississauga as experts predict the deepest decline in 50 years across Canada. In Mississauga, the July 2022 benchmark price for a single-family detached home was $1,601,000, according to the Toronto Regional Real Estate Board July report. That's a drop of $73,800 from June's benchmark price of $1,674,800. 'In the Toronto and Vancouver areas, the decline in activity is quickly becoming one of the deepest of the past half a century,' the RBC August housing report notes. 'Prices are sliding fast, and the exuberance that permeated these markets earlier this year is being replaced by fear.'" The Sydney Morning Herald in Australia.