Friday, July 6, 2018

Real Estate Market

I had a sense that the expensive spec houses that builders have built recently in the neighborhood were not selling, but I just checked on Zillow and confirmed it. I assume they thought these would find buyers before construction was complete, but they have been sitting finished for many months unsold. Did they overshoot the mark on pricing? Or maybe got caught by the interest rate increases? (Mortgage rates are up >100 bps since mid to late 2016.) So now the developers are doing price reductions, which is a change to the post-recovery tempo. I think it will be an interesting sign if they do not move this inventory by fall.


ADL said...

Do keep us inhformed, if you're so inclined.

CP said...

Still don't seem to be selling. I'm hearing about this in other markets as well.

League of Women Voters said...

They were fed up with Seattle’s home bidding wars. They were only in their late 20s but had already lost two battles and were ready to renew with their landlord. Then, in May, their agent called.

Suddenly, Redfin’s Shoshana Godwin told the couple, sellers were getting jumpy, even here in the hottest of markets. Homes that should have vanished in days were sitting on the market for weeks. There was a three-bedroom fixer-upper just north of the city going for $550,000, down from more than $600,000. They made the leap in early June and had closed by the end of the month, for list price.

The U.S. housing market -- particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas -- appears to be headed for the broadest slowdown in years. Buyers are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and there’s only so far they can stretch.

CP said...

“June sales were down in these markets by double-digits and inventory was up also by double-digits,” he said of the West Coast cities. “The trend is continuing in July and reports are now coming in from Washington, D.C.; Boston; Virginia and parts of Chicago as well that homes there are getting harder to sell.”