From Business Insider:
Buyers catch a break: Home prices just fell the most in 2 years
Homebuyers are finally starting to see the housing market shift in their favor, with home prices being slashed at the fastest pace in two years, according to Realtor.com.
The share of available listings that saw a price cut in July rose to 18.9%, up 3.4% compared with levels recorded in July last year. Those cuts have helped push down home prices across the country, with the median US home price dropping from $445,000 to $439,950 last month, the real-estate-listings site said in a recent report.
Price cuts have largely been driven by lower demand, alleviating some of the imbalances that pushed prices to record highs over the past year.
“First, rates remain higher than expected, which means there is less buyer activity,” Ralph McLaughlin, a senior economist at Realtor.com, said in a statement. “Second, the prospect of lower mortgage rates coming this fall may have induced some buyers to wait. This combo has led sellers to lower their prices in order to attract more buyers.”
The 30-year fixed mortgage rate dipped slightly last week, hovering around 6.7%. Buyers, though, are expecting rates to cool even more, especially as the Fed looks poised to cut interest rates in September.
Among the metro areas tracked by Realtor.com, 47 out of 50 saw the share of homes with price cuts increase year over year.
Cities in the Sun Belt appeared to dominate in the overall share of price cuts. Tampa, Florida, had the largest increase in price reductions over the past year, with 9.7% of homes on the market getting a cut in July. It was followed by Charlotte, North Carolina, and Phoenix, where 9.5% and 9.4% of homes on the market got a price cut, respectively.
1
We‘re currently in the Orlando area for a few weeks where we own a short term vacation rental. Although we could sell now for a profit we‘ll see how the next 12 months go for rentals. We are in the process of switching property managers. Things here are totally different since before the pandemic and the economics are much different.
This is the week realtors have to change their commission structure.
Biggest changes are.
When a buyer goes to an open house now they’re going to have to actually sign a non-agency agreement form before they can even go in the house and talk look around and maybe talk to the agents.
Require MLS participants working with buyers to enter into written agreements with their buyers before touring a home and agree on a percentage fee.
Home sellers do not have to pay buyer-agent commissions.
So a realtor is going to ask me a buyer to commit to a certain percentage of commission, of which the buyer is obligated to pay if the seller balks on paying?
Will commissions go lower?
If you are a motivated seller you don’t want to be experimenting with commissions in this unsettled environment. My advice would be to include in your listing a seller concession to replace the traditional compensation to the buyer’s agent.
Commissions have been going down slowly for some time now. I would put the average commission in our area around 4.75%.
Home prices falling?
There’s a music video for that:
https://www.youtube.com/watch?v=G4PvTrTp7Tc
Chad Powers,
In what way have the economics totally changed for rental properties in Orlando pre/post COVID?
I lived in the Orlando area in the 1990s, back then Southern Orlando near Disney was pretty low density. On recent trips I’ve noticed tons of relatively high density apartments. And it’s made the traffic really terrible around there vs decades ago. It used to be that traffic was only bad around Disney (on I4) around park closing time, now it seems constant. Are these rental units just constantly turned over for tourists, are there service workers renting there? It didn’t used to be a very desirable place for residents to live, I’m guessing it’s still that way.
Seems like in past years people have turned airbnb hosting as almost a full time job, owning many rental units, almost like running a virtual motel.
I think there are charts to be found for Florida real estate pricing, seems like there’s always a downturn in recessions after big upturns. Especially if the upturn is in areas where debt financing was used for the buying.
No One:
It seems to be much more competitive in the short term rental business. Plus they continue building new hotels. Seems to be a glut of rooms available. Our house is in Kissimmee, maybe a 20 minute drive to Disney.
The other thing that changed is the overhead. Things are just really expensive. Electricity, water, cable TV, internet, etc., are of course monthly expenses that cost more now. Homeowners insurance has gone up, and 1 1/2 years ago we were required to put on a new roof or the insurance was going to be dropped. We also thought we‘d get over here more, but plane tickets are also more expensive. We’re probably making a mistake not selling now because who knows what will happen to the market in a year. The house currently is worth about $190,000 more than when we bought it. However my wife likes the house so I‘ll just have to see what happens.
Among the metro areas tracked by Realtor.com, 47 out of 50 saw the share of homes with price cuts increase year over year.
Who’s the 3 metro areas that didn’t see price cuts?
Bergen County and the Shore.
The rest of the country can go f@ck themselves.
Lol! The unicorn tourism here in Bergen County is better than ever, I must say.
Patience. Like a three-legged horse, we are alway last to the finish line. Same with the rebound. With this dense population, it takes a lot longer to get it through their thick heads that their POS cape really ISN’T worth a mill.
I know you guys aren’t into NASCAR but yesterday’s finish at Richmond was worthy of drama. You can pull up the last few laps on any social media site, I’m sure. There’s a lot of back story but the finish was questionable, controversial, melodramatic and fixin’ (that’s my southern accent there) for revenge.
Libturd,
For once, the house tour guides got it right or are the recipients of the broken clock theory. We are Palo Alto now. There’s no turning back. The 3/1.5 on a 50 x 100 lot goes for a $million. That’s the entrance fee. If that doesn’t work, may I show you a few houses for sale in Flint, Michigan?
Only if they fixed the lead pipes!
Fast: Not a lot of houses in my town for sale, but whatever is there seems to be sitting. Still quite a few tear downs in the process of being built. One perfectly fine 4 bedroom colonial was town down and is being rebuilt. All are in the black and white farm house style.
Was in LBI yesterday for the first time in maybe 12 years visiting family. Wow, the post Sandy rebuild really transformed the place. I dunno though, it doesn’t have much charm with all the modern architecture IMO. One thing I find weird is there is an extreme shortage of lifeguards there. Seriously, you can put up a $5 million dollar home every lot…increase the pay of the lifeguards and fill those chairs.
Prices are dropping now before the school year starts young families moving in.
Here wo recent sales in my neck of the woods this month, no lines at the open house and no bidding wars.
1) Listed $939,000 SOLD 8/7/2024 at $900,000 – Previous sale 6/1/2020
$625,000 nice profit since nothing was updated.
2) Listed for sale $990,000 SOLD 08/01/24 $990,000 – 8/30/2019 – Previous sale 7/17/2019 – $625,000 again nice profit nothing updated.
Home across the street from me still stands empty. It is now one week after the initial weekend showings. This is unusual for this area. Homes like this usual would have sold for now.
Libturd,
Does that mean we just have reached the top of this cycle for NJRE? Mark down last weekend as the official end.
Gotta be close, though, when the FED drop interest rates, it could cause a deluge of buyers.
When do we get the pics Tim Walz in drag?
…when the FED drop interest rates, it could cause a deluge of buyers.
Give me your best and highest by the end of today, we’ll call you if you have shot. Otherwise, don’t bother us and don’t ask us what the highest bid is. If we don’t call you, it means you insulted the buyer unless, of course, the buyer decides your bid may be considered because they priced it to high to justify the stench.
Fast: And the drop in rates may cause bidding wars and drive prices up. Seen this a couple of years ago when because of reckless Fed actions rates were under 3 percent. Rinse and repeat. Of course, if we get a recession with big job losses, things will be different as far as new buyers. Existing owners will get bailed out. Is it any wonder the younger generations are screwed and angry.
Exactly what I was thinking 3B. There really is no easy solution to housing affordability except to make RE investment a less favorable investment through changes to the tax laws. We all know that ain’t happening.
Lib: No, there is not. Thanks to the Fed , and government bailouts did homeowners, and the banks too of course. Capitalist system my ass!
A bad recession and the continuing rapid decline of the birth rate will go a long way to addressing the problem.
Seal the border and you’ll get pennies for your home with the current birth rate.
Israel s military on high alert after intelligence indicates Iran / Hezbollah preparing for attack on Israel.
Lib:Very few of those folks crossing the border will be buying houses anytime soon, and neither will their children.
3b- Middle East is a sideshow. Ukrainian long range drones just hit the military airport inside Moscow. Everyone in a high rise in Moscow can probably see it burning..
This is how CBS reports the same exact policy proposal.
https://x.com/TimMurtaugh/status/1823061456818233852
Lib, all this housing with zero population growth sounds like cheap affordable homes for everyone already here. Is that a bad thing?
BRT: No surprise.
Juice: It will be interesting to see how Putin reacts, plus Ukrainian forces have pushed 20 miles into Russia, and have occupied a few towns. Psychologically that has to be jarring for the Russians.
President Mamala knows the difference between Russia and the Ukraine. It’s all good, no worries.
Fast Eddie says:
August 12, 2024 at 3:41 pm
“President Mamala knows the difference between Russia and the Ukraine. It’s all good, no worries.”
That’s right, Ed. And to make everyone feel even better, here’s Carmella’s authoritative assessment of the situation: “So, Ukraine is a country in Europe. It exists next to another country called Russia. Russia is a bigger country. Russia is a powerful country. Russia decided to invade a smaller country called Ukraine. So, basically, that’s wrong.”
Small: We are told that Harris made those comments because her audience was people who were not familiar with the situation. So, I assume based on her comments she was explaining the situation to a group of 3rd graders.
Another Harris word salad at an abortion rights rally last year.
“So, I think it’s very important, as you have heard from so many incredible leaders, for us at every moment in time — and certainly this one — to see the moment in time in which we exist and are present, and to be able to contextualize it, to understand where we exist in the history and in the moment as it relates not only to the past but the future,” she told the crowd.
Looks like DJT and DNA are having as exciting of a finish as that Nascar race.
Were not was people.
Wow! Grim
With some real estate! Congrats
You just cant make this stuff up.
Why Trump flew to campaign events on Jeffrey Epstein’s plane last weekend
https://www.miamiherald.com/news/politics-government/article290986070.html
So this is the plan. Dont certify the vote if Harris wins, so she cant get to 270.
Throw the election to the house where it is one vote per state. R’s hold the majority of the states.
There are some in here that will be very happy with that plan if it comes to fruition.
https://www.theguardian.com/us-news/article/2024/aug/12/trump-overturn-result-presidential-election-vote
Here is what we will see in Georgia.
https://x.com/Greg_Palast/status/1823026786126709225
Orlando right now, is the third circle of hell. I cannot imagine being down there at this time of year. Pure Torture.
5:40 Dirty Pool man. Win ny any means necessary. It’s gotta be a landslide then. She has to royally kick his ass in places where the states that “opt out” will be isolated and unnecessary to win the POTUS.
Ukraine situation isn’t getting nearly the play it should.
Reuters
Ukraine said on Monday its biggest cross-border assault of the war had captured 1,000 square kilometres (386 square miles) of Russia’s Kursk region and that Russian President Vladimir Putin would have to be forced into making peace.
Grim says:
August 12, 2024 at 6:44 pm
“Ukraine situation isn’t getting nearly the play it should.”
Correction: Nothing related to Dem incompetence, fecklessness or corruption is getting the play it should.
But just to confirm, you feel that Carmella and the Coward is the best team to handle the ‘Ukraine situation’, right? Or are you confident that what’s left of SlowJoe will have resolved it by Jan?
Is Elon going to break the internet at 8 PM with his Trump Interview?
Former President Donald Trump and Elon Musk’s X stream got off to a shaky start tonight as the stream failed to load.
The hotly anticipated stream was due to start at 8pm but as millions logged on to watch, a blank page appeared in the Spaces screen on Musk’s social media platform
“Is Elon going to break the internet at 8 PM”
No the Internet is going to break him!
https://x.com/AnnaBower/status/1823153921688211583/photo/1
Word Salad you say:
You know, Russia defeated Germany with us, and they defeated Napoleon. You know, they’ve been around a long time. They’re a big fighting force, and it’s very unfair. And Ukraine now doesn’t have enough men, they’re now using young men and very old men to fight, and … we’re in a very bad position. And I’m not going to blame, exclusively, but I can tell you, I could have stopped that, and a smart president could have stopped that.
More wisdom from Drumpf:
The biggest threat is not global warming, where the ocean is going to rise one-eighth of an inch over the next 400 years … you’ll have more ocean front property, right? The biggest threat is not that. The biggest threat is nuclear warming, because we have five countries now that have significant nuclear power, and we have to not allow anything to happen with stupid people like Biden.
Good points on education and energy. Energy independence will drop the cost of everything. And removing the department of Education and giving it to the states is a win. We’re in the basement in every category while spending the most per student. This needs to change.
Another good point; removing regulations on companies to invest and innovate. 63% of companies in the U.S. have 100 employees or less. They need to be able to produce and hire. If she gets elected, these companies will stall or fold. Can you imagine explaining this concept to Cumella?
Musk said we shouldn’t demonize the oil and gas industry and suffer by just cutting it off but work towards a sustainable energy source in the meantime. The house isn’t on fire but says we need to work on alternatives. He thinks solar is something to explore further but other ideas as well. He says nuclear needs to be considered but regulation makes it impossible to implement.
USA Today:
Trump rambles, slurs his way through Elon Musk interview. It was an unmitigated disaster.
For a fascism-curious billionaire who loves cuddling up to right-wing loons, Elon Musk sure is good at making right-wing politicians look stupid.
For a fascism-curious billionaire who loves cuddling up to right-wing loons, Elon Musk sure is good at making right-wing politicians look stupid.
Former president Donald Trump had loudly trumpeted a planned Monday night interview with Musk that would stream on X. But much like the disastrous X-platformed launch of Florida Gov. Ron DeSantis’ presidential campaign, the Musk/Trump interview failed to launch, leaving social media users laughing at the collective incompetence.
Cont’d
Since Vice President Kamala Harris rose to the top of the Democratic presidential ticket, Trump’s campaign has been flailing. His childish attacks against her aren’t working. His racist comments about her mixed-race heritage have repelled all but his most loyal supporters. His vice presidential pick, JD Vance, becomes less likable every time he speaks.
So his answer, weirdly, was to sit down with Musk and talk to what would undoubtedly be a very online audience that doesn’t represent the broader electorate. Had the conversation gone off without a hitch, it still would have been odd and largely useless for Trump’s effort to halt Harris’ momentum.
But the online interview went off (the rails) with a multitude of hitches. X users erupted with either frustration or laughter as the planned start time passed, and nothing could be accessed. It took more than 40 minutes before the interview could start and be heard by anyone. It was amateur hour, the last thing a campaign struggling to project competence needed.
Half the country will vote for Trump.
Half the country will vote against Trump.
No one will vote for Harris.
Just wait. Trump will be lucky to get 25-30% of the vote.