Price Reduced!

From HousingWire:

Is housing becoming a buyer’s market?

Home sellers have begun cutting back their listing price, especially at the high end of the housing market, leaving open the possibility that it is now beginning to shift to a buyer’s market.

About 14.2% of all homes listed for sale on Zillow saw a price cut in June, up from a recent low of 11.7% at the end of 2016, according to new data released by the company. This is also up from 13.4% in June 2017.

From the beginning of this year, the share of listings with a price cut increased by 1.2 percentage points, the greatest January-to-June increase ever reported and more than double the increase from the same period last year, according to the report.

And in some markets, the numbers were even higher. For example, in San Diego, 20% of listings had a price cut in June, up from 12% last year.

Seattle also saw an increase in its number of homes with a price cut to 12% of total listings in June. This represents the city’s greatest share since October 2014.

While home prices continue to rise across the U.S., that growth is beginning to slow. Zillow’s data shows home values rose 8.3% over the past year to $217,300, but the company forecasts that growth will slow to about 6.6% over the next year.

But this increase is coming from the top end of the market, rather than starter homes, where real relief is needed. The data shows that for homes priced in the top one-third of all homes listed for sale, those with a price cut increased 0.9% to 16.2% annually in June.

But over that same time, the share homes with a price cut in the bottom one-third of all those listed for sale actually fell 0.1 percentage points annually to 11.2% in June.

“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early signs that the winds may be starting to shift ever-so-slightly,” Zillow said in its report. “It’s far too soon to call this a buyer’s market, but these data indicate the frenetic pace of the housing market over the past few years may be starting to return toward a more normal trend.”

What’s more, it seems housing inventory is finally starting to bring some relief to homebuyers at the lower end of the market, providing more affordable housing inventory for first-time buyers.

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44 Responses to Price Reduced!

  1. ExEssex says:

    Foist

  2. The Great Pumpkin says:

    Dead on. Too many self absorbed idiots don’t acknowledge the luck factor. Sounds like “No One.”

    “Happy accidents

    These perceptions of fortune matter not just because it’s more fun to feel lucky than cursed. Recognizing the role that good fortune—say, being born into a well-off family—plays in successes means that we’re more likely to work to ensure opportunities for others, too, via social programs, for example. That’s what former US president Barack Obama was getting at when he noted, “If you’ve got a business—you didn’t build that. Somebody else made that happen.” Obama was pointing to the ways that government and social support enables people to achieve their goals. “If you were successful,” he said, “somebody along the line gave you some help.”
    Because American culture prizes the story of the individual who picks themselves up by their bootstraps, some bristled at Obama’s assertion. Yet effort and talent are only part of any success story. And refuting that fact is why some feel little obligation to give back, to spread the wealth when it comes to opportunity.
    That’s in keeping with the research of Cornell University economics professor Robert Frank. “A growing body of evidence suggests that seeing ourselves as self-made—rather than as talented, hardworking, and lucky—leads us to be less generous and public-spirited,” Frank writes in The Atlantic. “It may even make the lucky less likely to support the conditions (such as high-quality public infrastructure and education) that made their own success possible.””

    Science shows that luck is a self-fulfilling prophecy – Quartz
    https://apple.news/AlkmS55ONTMCqmwAsMey6sg

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  4. No One says:

    Fcuk you moron mikey. Being rational and working hard makes me 100x luckier than you. I guess Roger Federer is also just lucky tennis player in your hater pea-brain.

  5. Bystander says:

    More fine upstanding public workers..and my, what solid financial controls by the well paid school admins

    Cafeteria Workers Stole Nearly $500,000 in Lunch Money From Schools, Police Say

    In the well-to-do town of New Canaan, Conn., families pay top dollar to live on picturesque New England streets, frequent the area’s upscale boutiques and send their children to some of the best schools in the state.

    But in recent years, a scandal had quietly been brewing at a couple of those schools: Someone had been taking the children’s lunch money — after it had been paid.

    “For years, cash was disappearing from cafeteria registers at the high school and middle school, apparently unbeknown to school officials. Nearly $500,000 was pilfered from 2012 through 2017, the authorities said.

  6. NJDepartment says:

    Why does pump starts thread crapping with some non RE news every-time grim posts an article that talks about some -ve RE trend news??

  7. The Great Pumpkin says:

    No one,

    Truth hurts.

  8. The Great Pumpkin says:

    “Actors Jeff and Beau Bridges, along with their sister, own a four-bedroom Malibu home with access to a semi-private beach and panoramic views of the Pacific Ocean.
    They inherited it from their mother, who had owned the house since the late 1950s when their father Lloyd Bridges first made it big in Hollywood”

    A 32-year-old tax break is helping the rich get richer in California – Los Angeles Times
    https://apple.news/ANoDQ7_lSQ5yuH3RIg7s4Hw

  9. The Great Pumpkin says:

    No one,

    You clearly missed the pt of the article!

  10. The Great Pumpkin says:

    Why the hate? I point out the truth to a Randian, and it’s crap? We are a species, don’t get mad when you have to pay more taxes to make up for the less productive. That’s how the system works, and why the bottom dwellers let us enjoy our money without revolution.

    NJDepartment says:
    August 18, 2018 at 6:10 pm
    Why does pump starts thread crapping with some non RE news every-time grim posts an article that talks about some -ve RE trend news??

  11. 30 year realtor says:

    Been doing research on homes in Rio Vista Mahwah. Several homes purchased in last 5 years back on market recently. All are listed or closed below prior sale prices from 2013 to 2015. Big homes with distant NYC commutes and still depreciating.

  12. yome says:

    My Son just got a promotion with MS.He is with the Hedge Fund Division today. The kid can afford to buy a house in NJ but won’t.

    Just like every other Millennials they do not know where their job will send them.

    My Daughter with LVMH going to Los Angeles or Florida
    My niece,Company is getting ready to send her somewhere too.

    Why will they buy a house?

    I get scared when Cuomo comes out on a TV Ad saying;If you want to go to College in NY we will pay for you.
    NY will have a socialized Healthcare

    Where is the money coming from? Companies are leaving

  13. Bystander says:

    Yome,

    A simpleton like Blumpkin won’t see the steamroller coming until he is under it. How many people have to point out NYC jobs are fluid, jobs are being nearsourced, jobs are being outsourced, jobs are being automated, jobs are being eliminated before he gets it. There is no wagon coming to rescue this time. History means nothing particuarly with economic models and cycles. It is new game. I had phone screen with Nestle for Change PM back in April. Did not hear back for a month. I received a curt email that the job was being moved from Norwalk to St. Louis with no relocation package. I had two days to reply if interested otherwise I would not be considered further. These kids are smart. The older established folks in late 30s to late 40s are screwed holding bag.

  14. Bystander says:

    But I should give Blumpkin his due. If there is any truth to his background then he is poised to survive the new game better than myself. Your competition is now every Indian power couple. Both skilled, both high income potential, and only one child..any younger couples, who live in NJ or NY metro, better get on board quickly. They will take lower wage, work harder, be happy and compliant and live more frugally than you.

  15. Chicago says:

    South Asian power couple? Yikes. Lethal combination of suffocating hubris, lack of common tact, and a cringeworthy frugalness. Not to stereotype. : )

  16. yome says:

    Other side of that coin

    Nephew a CSI Detective,will receive his pension in 8 years. Kid join the force after College bought his house after 5 years. Just sold it and bought a million dollar home.
    His eldest will be 18 when he retires.
    He will be sending two kids to College , will pay over $20,000 in Property Tax plus his mortgage and will still need to eat,pay for car insurance while he is retired as a cop.

    That is how much we are paying their pensions

  17. Bystander says:

    Fact, you think the Indian power couple pays $2500 for Bright Horizons daycare, $75 for Malone’s lawn service or $400 a month eating at fancy restaurant? They have underground network of illegal, cheap desperate labor. Do you? Don’t think employers are ignorant to the frugality of their lifestyle over vanilla American couple expecting big raises each year.

  18. 3b says:

    Indian families also have parents who live with them and take care of young children. I also know of one family where two married siblings bought a mc mansion together and both couples with their children and one set of parents all live together in the house.

  19. The Great Pumpkin says:

    3b,

    That scenario does save money, but it is not worth the cost. It gets old fast and depending on the type of personalities mixing under one roof it usually can lead to unhappiness and divorce.

  20. The Great Pumpkin says:

    What’s worth more happiness and quality of life(which should help you live longer) or living miserably like peasants to save a buck? Power of money leads people to make awful decisions as they place saving money above anything else. They die saying they saved a lot of money, but lived like sh!t with the only life they have….high five!

  21. Blue Ribbon Teacher says:

    Is that why Asians I. New Jersey live until 90?

  22. Bystander says:

    Blumpkin,

    You are completely ignorant to the culture. It is their way of life. It does not get “old” and they do not fight it. In fact, they would be insulted if it were any other way. It will take two generations to shake the strict Indian culture from their kids…and they still won’t marry outside of their own culture. It is completely anti-integration. They want to American jobs/money and nothing else from the culture. It is completely insular.

    On another note, perhaps this fall hiring will not be so fruitful.

    Job Title – Change Manager

    We are interested in speaking with you regarding our Change Manager position located in New York, NY, USA. Your skills and experience are a great match for this position, here are some additional details:

    Job Title – Change Manager
    Location – New York, NY, USA

    CGI is seeking candidates for Process Change Manager with a strategic client in the Corporate and Investment Banking Industry in New York City.

    The scope of the role involves analyze , manage and document process change and transformation for an investment banking regulatory project.

    – Extensive knowledge of facilitating organizational change efforts
    – Person should be well versed with domain knowledge in Banking & financial services
    – Extensive knowledge of facilitating organizational & process change efforts, the ability to analyze and understand process impacts on people and technology to make recommendations that meet the organizational goals of creating and sustaining change.

    ..plus a million other requirements

    Salary? $110,000. This is for IB in NYC. What a joke.

  23. Walking bye says:

    30 year I’ve been looking at hones in upper saddle river and Montvale and there is real fear in the streets now. Recently saw a $1.1 m house bought in 2011 marked down to 850. This was after major Reno in 2014. Many want to get out but having difficulty finding buyers theses border towns are too far from nyc I guess.

  24. The Great Pumpkin says:

    Why come to another country if you want to continue living like you are in India. Makes absolutely no sense. All this just to save money, yet live exactly like you did in India. Seriously wish people that are not able to let go of their culture would just stay in their own country. They instead come and ruin our society because they refuse to change their ways. The end result is our society takes one step closer to the craphole they have created in India. Kill our wages and start the destruction of neighborhoods by having way too many families in a home while doing zero maintenance to the home and landscape. It’s like a disease. Making America into a third world craphole.

    Bystander says:
    August 19, 2018 at 1:50 pm
    Blumpkin,

    You are completely ignorant to the culture. It is their way of life. It does not get “old” and they do not fight it. In fact, they would be insulted if it were any other way. It will take two generations to shake the strict Indian culture from their kids…and they still won’t marry outside of their own culture. It is completely anti-integration. They want to American jobs/money and nothing else from the culture. It is completely insular.

  25. Chicago says:

    When you think South Asians, they may as well be Hasids in terms of being insular and arrogant. The Hasid just everyone to stay away and also take advantage of things offered to th public. Indians just want money and respect and offer nothing in return. They also don’t know how to have a conversation. They just want to lecture and argue.

  26. 3b says:

    They are also not into landscaping. Just saying.

  27. NJDepartment says:

    I see some panic sellers in my market.. Sourth Bergen train towns.. Price reduced up-to 20%.. Moslty flipper homes.. Maybe seasonal panic if they couldn’t sell before the school cutoff.. Not sure if this is a temporary issue or will last or will reverse..

  28. FlipFlopFluppityFlopFck says:

    To 30yrs/NJ Dept/ Walking Bye – it’s not the commuting distance from NYC.

    Just take a look at around Englewood Cliffs, a ton, of flippers that are flopping. They seemed to got lucky in ther 2010-2013 flips and tried again. This time is not working out.

  29. Bystander says:

    Flip,

    Prices rising, rates rising and wages not rising. It seems like people were buying before rates increased to 4.5 – 5% then it became a momentum play based on rising economy. Reality is now settling in – jobs are not paying higher wages and SALT deductions will have impact. Bigger question – why buy a home even with small price cuts? If I wait longer, will it go down further? That could be a real situation for housing. No real impetus to buy anything now that falling knife is coming.

  30. NJDepartment says:

    Bystander,

    I’m in the market for a house and that is exactly what I’m thinking right now.. Even with price drops.. I’m unable to figure out what price drop is is doable..

  31. Bystander says:

    NJD,

    Smart to wait. I would not buy anything over 2004 price. I see lots of bubble buyers trying to unload for a profit. It would be crazy to accommodate them. Sure you will do fine.

  32. The Great Pumpkin says:

    I’ll throw this in.

    Why should there be a major price drop with the exception of someone that needs to sell now (flippers or forced to relocate). These are the only desperate sellers in the market. No one else is thinking about selling and they certainly won’t be selling at such a significant price drop, they would have to be insane.

    So if current wages over the past 8 years have supported current pricing, why should we see such a major correction in our area at a time when there is not enough housing to meet demand by a mile? Maybe over million market might be a different animal, but anything under a million will not be dropping much if at all. Could you imagine the feeding frenzy if a home at 600,000 dropped 20%? 480,000? It would be impossible imo, market participants would never let it drop so far with their appetite for housing.

    Catch a falling knife? How? It’s really not even close to an overvalued market in our area. So why should prices fall into the unknown?

  33. The Great Pumpkin says:

    Think about this also. The cost of building a house is not coming down, it’s going the opposite direction (lack of workers in the construction field, trump shutting cheap immigrant labor, and cost of supplies going up). So combine that with the idea that there is nowhere close to the amount of inventory these next generations need to feed their appetite, and you have the ingredients for a current cheap housing market in comparison to future housing costs for those able to see into the longterm housing market.

    Forgot to add that most of the current inventory is old and in bad disrepair. So this will further add to the strain on housing costs in the future. I can’t see it going down long term, no way, no how.

  34. The Great Pumpkin says:

    Also, Indians buying housing in our area will lead to a bigger inventory problem. My brother built his first house all by himself. Everything beautiful from landscaping to home. Well, he sold to Indians. Guess what that sick landscaping looks like? Total crap. Landscaping looks like a foreclosure or some elderly owner unable to take care of it. Since they don’t maintain anything, they are destroying the housing stock(never mind if they smelled up the house with their cooking). I just see a huge shortage in housing inventory in our area in the future.

    How do prices come down with lack of inventory to meet future demand?

  35. yome says:

    I had the same thought of thinking before the Housing Meltdown in in 2006 Why will anyone sell for a loss?

    Lesson learned after,Homeowners do not really own this homes.A change in circumstances in life will trigger a default or sell to a loss

    It is different when the house is paid for and it is really your own. Even then, unpaid property tax will still force you to foreclosure

    “Why should there be a major price drop with the exception of someone that needs to sell now (flippers or forced to relocate). These are the only desperate sellers in the market. No one else is thinking about selling and they certainly won’t be selling at such a significant price drop, they would have to be insane.”

  36. yome says:

    Lack of able eager homebuyers in the area will trigger the price drop. As I have said, millennials are not eager to buy their first homes due to uncertainty of where their jobs will be.

    Upgrade homebuyers will need to sell their homes before they can buy.

    New Constructions are for Upgrade homebuyers. They will not build if there is no homebuyers.

  37. The Great Pumpkin says:

    Way different conditions back then, that was an enormous bubble, and even then, how much did prices come down? And the longer you held, the closer you come back to getting your money back if you bought at bubble pricing due to longterm dynamics of the housing market.

    Housing is no different than the stock market. The true winners play it longterm, short term are for the risk takers losing their shirt or making a killing. Longterm players usually don’t lose their shirt, but they also don’t make a killing with quick money.

    yome says:
    August 19, 2018 at 7:57 pm
    I had the same thought of thinking before the Housing Meltdown in in 2006 Why will anyone sell for a loss?

  38. NJDepartment says:

    If metros and commutable areas are weak now, spillover will make areas like Wayne ( where prices haven’t reached 2006 peak) tank from now on.. Its going to be ugly..

  39. 3b says:

    In my blue ribbony train town prices are pretty much where they were in 2004 through 2006 or so. Some outliers here and there and a few poor fools really way over payed on a few. But for the most part if you bought in the last decade or so you are flat to somewhat down.

  40. The Great Pumpkin says:

    Yes, and that tells you it’s a good time to buy on a longterm historical scale. If you are telling me that prices are going to be cheaper 10-20 years from now, I would have a real hard time agreeing with you.

    Longterm, it doesn’t get any easier than this. Shorterm, good luck taking that risk in this market trying to flip.

    3b says:
    August 19, 2018 at 8:45 pm
    In my blue ribbony train town prices are pretty much where they were in 2004 through 2006 or so. Some outliers here and there and a few poor fools really way over payed on a few. But for the most part if you bought in the last decade or so you are flat to somewhat down.

  41. The Great Pumpkin says:

    Go ahead, make that bet, I just don’t see how it’s going to get ugly.

    NJDepartment says:
    August 19, 2018 at 8:24 pm
    If metros and commutable areas are weak now, spillover will make areas like Wayne ( where prices haven’t reached 2006 peak) tank from now on.. Its going to be ugly..

  42. grim says:

    I don’t approve of the bashing and stereotyping in this thread.

  43. The Great Pumpkin says:

    Traditions and tribalism are how we got to where we are today. They provide stability in society and allow for groups to work together towards a common goal. When you have all these different languages, with people all over the place in their goals for said society. How does said society ever accomplish anything under this scenario? It’s chaos. Too many needs and wants. Rand is out of her mind on this one.

    How did America become so great and change the world? It brought an end to authoritarian rule and blasted the power of monarchies into oblivion by adopting the Puritan value system. When immigrants came they adopted it. With so many people adopting a culture of hard work and strict religious controlled behavior(fear of god made them do the right thing), America became a super power in a blink of an eye.

    Africa, Europe, and Asia have been around how long? How did these English colonies turned into a United Country go on to control the world? Tribalism based on Puritan values.

    “Her larger point was that tribalism is essentially anti-intellectual, appealing to a particular kind of passive mentality that is more comfortable in a stagnant society ruled by tradition than in a vibrant, innovative, rational culture.”

  44. The Great Pumpkin says:

    A bunch of immigrants who left behind their culture and adopted the culture of America. Tribalism built this country.

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