Home sellers slash prices, especially in California

[Account Closed]

Seems like maybe the California market is topping out ? . . .

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Home sellers slash prices, especially in California

• In the four weeks ended Sept. 16, more than one-quarter of the homes listed for sale had a price drop, according to Redfin, a real estate brokerage.
• The supply of homes for sale increased annually in August for the first time in more than three years, according to the National Association of Realtors.
• The average rate on the popular 30-year fixed mortgage loan is up more than a quarter of a percentage point in the past month and is knocking on the door of 5 percent, a level not seen in nearly a decade.

https://www.cnbc.com/2018/09/20/home-sellers-are-s...

"sales dropped to the slowest pace in two years, according to the California Association of Realtors"

[Mike Dymski]

Originally posted by @John Acheson:

THANK YOU for finally posting the reality we are all facing!!!  Australia, Canada, China (and some parts of Asia not Japan) and So Cal are coming down. We are near or past the top so why aren't BP investors crying out for help with their 10 year plans or don't they have those? Are we assuming everyone here can take a 20-40% depreciation hit? I'm looking for solutions during a slide and have only come up with bonds so far...is there anything else that appreciates during an asset downturn???

Many investors have no properties in their portfolio with a risk of a 20-40% decline in value. In the last (catastrophic) downturn, many growing markets experienced little decline in value...my market had a 5%...maybe 10% decline at most (and cash flow actually increased). Good locations, add value, cash flow, prudent debt, and reserves.

We invest in individual properties, not the entire real estate market.