Sellers Have Increasingly Slashed Their Prices, Faced A Glut Of Competition And A Shrinking Pool Of People Who Can Afford To Buy

Abstract

"Charlotte real estate agent Maceon McCracken said that the market now seems to be finally 'normalizing.' She recently helped that same client sign a contract to purchase a home for $40,000 below the list price, a significant shift from just a few weeks ago. Real estate agent and broker Heather Hopkinson said she's seeing a repeat of what happened after the 2008 market crash, a time when she saw low appraisals and quickly fluctuating home prices. She said that with such a fast-moving market, pricing information about comparable homes is inaccurate after 30 days when prices change, leading to appraisals that may no longer match." The Sun Sentinel. When the market was increasing, pricing a home above what it was worth was less important. "A new report is out by Zillow which is showing how quickly and dramatically home sales in the Valley of the Sun are dropping. As of this week, the average home value in the Phoenix market is around $451,000, a decrease of about 6% since May. The most startling statistic is that pending sales are down 42.4% compared to last September while new listings fell by nearly 10%. A number of price cuts are being seen across the board as well, with nearly half of homes on the market seeing a price reduction." The Review Journal. "Southern Nevada's market appears to be in a logjam, and there's no telling when it will break through. Following last year's buying binge, house hunters have faced a sharp jump in borrowing costs and big price gains over the past year, and they've pumped the brakes on purchasing. Sellers have increasingly slashed their prices, faced a glut of competition, and dealt with a shrinking pool of people who can afford to buy a place." "'It's impossible for people in this market to afford these homes, and so something's gotta change,' said Nicole Bachaud, senior economist with listing site Zillow. ' According to Zillow, 42 percent of Las Vegas-area home listings had a price drop in September, up from just 9.3 percent in February. Most notably, the California Association of Realtors forecasts a 9% drop in values statewide for 2023." "When homebuying becomes fodder for comedians, be nervous. The housing market has a bad habit of getting too popular. In February 2022, a Saturday Night Live TV skit parodied the housing insanity with a fake ad for Zillow's online home-search services. The skit suggested online house-hunting was a new amorous thing. At the same time, two public opinion polls suggested searching for homes was more popular than sex." "I gave these developments six"stars" on my five-star bubble-warning scorecard. "SFR Market Report:* 92115 College Area; Median home price down 7% from August to $957,000 with closed sales down 21%, and inventory steady at 51 homes currently for sale. * 92119 San Carlos: Median home price down 5% from August to $950,000 with closed sales down 5% to 18 sales, and inventory up 20% to 31 home currently for sale. * 92120 Allied Gardens/Del Cerro Median home price down 7% to $1,050,000 with closed sales up 23% to 27 homes sold and inventory of homes for sale up 31% to 34 homes available." From Market Watch.