It's now a buyer's market.

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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

Hypothesis: It's now a buyer's market. Some of the agents, who often only participate in one transaction every month or two, and are thus unaware, leading to some quirky anomalies (since buyers/sellers trust their agents to tell them "how things are"). But overall we're seeing price drops outnumber bidding wars or price increases.

Discuss. :)

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Will GastonPro Member

Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes

Can someone please notify the sellers in my market about this? They seem to be very much unaware.

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Vinay H.
Cambridge, MA · Member since 2017 · 268 posts · 247 votes
8y
Originally posted by @Brian Ellis:

@Chris Mason about 5 months ago I mentioned that things were changing pace, because I had been looking religiously for a deal. Now I notice a lot of price drops. So I would agree with you, its becoming a buyers market. If not, already a buyers market.
reporting from Cambridge, MA - I have to say that it is not as frenzied as in March/April but still not a buyer's market. This is the not-unusual fall/winter slowdown period.
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Vinay H.
Cambridge, MA · Member since 2017 · 268 posts · 247 votes
8y
Originally posted by @Gary F.:

1) Inventory catching up to demand. On any given weekend, there's now 7-8 "Open House" signs on the local intersection vs 1-2 during early Spring
2) Interest rates are creeping up
3) Typical lower sales season of the year
As I've heard others say, 2 months does not a trend make. The higher sales season of Spring will reveal more of the current RE market and economy.
These are all contributing factors but I think the market is just taking a breather. Now would be a good time to secure a nice flip for next spring....
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Gary F.
Honolulu, HI · Member since 2015 · 214 posts · 49 votes
8y
Originally posted by @Vinay H.:

Originally posted by @Gary F.:
1) Inventory catching up to demand. On any given weekend, there's now 7-8 "Open House" signs on the local intersection vs 1-2 during early Spring
2) Interest rates are creeping up
3) Typical lower sales season of the year
As I've heard others say, 2 months does not a trend make. The higher sales season of Spring will reveal more of the current RE market and economy.
These are all contributing factors but I think the market is just taking a breather. Now would be a good time to secure a nice flip for next spring....
YEs, exactly. Now if I could just find that all-elusive deal!!! So many of them have been fished out, but theres still some out there
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Brian Ellis
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
8y
@Vinay H. Last year 2 br sIngle familIes were bringing In bidding wars. Now they cant even sell below market. Cambridge Is highly sought after area, especially for rentals, tough to use as a comparison. As far as the MF, It has slowed down a lIttle, but not as much as The SF. Price drops everywhere.
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Michael S.
Huntsville, AL · Member since 2018 · 578 posts · 864 votes
8y
Huntsville market is absolutely a sellers market right now, and it is not slowing down at all. If anything, it is moving even faster now than it was 4 months ago. Quality inventory is incredibly limited.
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Steve Sal
Member since 2011 · 5 posts · 2 votes
8y
I do agree that each local market is dIfferent In my opinion I believe we are seeing political trepidation causing a slIght slowdown instead of true econmic factor. We have a strong economy, low unemployment, a bull market that appears to have more room to continue, along with many other positive economic indicators. Yet due the strong divide between polItcal partIes, It Is my sense that people need to see what the upcomImg judicial vote wIll turn out and even perhaps wait and see what the mIdterms wIll be. WIll there be a change in the house or senate whIch can hInder the dIrectIon the economy Is currently headed.
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Marian Smith
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
8y
@Chris Mason Steve Crossland mentioned on his blog that he is seeing a slowing in Austin, TX and Condo Joe recently went on tv news saying the same thing in condos in Austin. Neither said “buyers market” and supply is still tight at under 3 months. I wonder if it is a buyer “pause” to regroup and “digest” the high prices combined with new higher interest rates.
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Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
8y
Still a sellers market where I am for sure.
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Brian LaPorte
Rental Property Investor · Cleveland, OH · Member since 2018 · 21 posts · 10 votes
8y
Can be very seasonal here in Northeast Ohio. Seems to be normalizing a bit lately. Things in trendy areas were a little crazy over the last year. Desirable SFH neighborhoods are still strong, maybe seeing some higher inventory with folks trying to sell before winter. That's pretty normal here though. Then again, we're not a coast, and don't see the broad based swings that some others do.
Brian
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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
8y
I see a slow down in the Indianapolis market as well. There's a few properties that are completely over priced on my street. They went on the market 20+ days ago.
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Aaron Gordy
Real Estate Broker · Austin, TX · Member since 2012 · 1k+ posts · 1k+ votes
8y
Its still a sellers market. The interest rate increase will have some effect, of course as there will be less buyers in the market. Over the last 3 days there were 421 houses/condos and 11 duplexes/fourplexes that went under contract. Product will still sell. Even though the interest rates went up, its a far cry from the double digit interest rates of the 70's and 80's. I see hard money loans priced competitively and comparable to interest rates that I had on a few long term mortgages just a few years ago. There is still liquidity. Thank goodness!! When the liquidity dries up then I become nervous. My two cents.
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
8y
We are definitely slowing down, but it's still a seller's market. Just not the super-crazy seller's market of this spring.
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Paul Choi
Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
8y
"It's just a gully." LOL!
- from the movie "The Big Short"
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Andrey Rudenko
Real Estate Agent · Clinton, MA · Member since 2017 · 35 posts · 35 votes
8y
@Vinay H. I invest in Worcester and Clinton in Massachusetts and in those area prices have grown a lot in past 12 months. Couple examples: 1. Clinton. 2 family, 2000 sq ft, 4 bed 2 bath. Those were going for 230-250 k last year, now for 260-280k in average condition, and I e seen one go for 300k. 2. Worcester. 3 family, 4000 sq ft, 9 bed, 3 bath. They were selling for 300-330 k last year, now 350-400 k in average condition. I’m just guessing, but i think more investors move to those areas from boston in search of higher returns.
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Brian J Allen
Real Estate Agent · Worcester, MA · Member since 2018 · 519 posts · 410 votes
8y
you are correct. lots of Boston buyers looking for higher CAP rate, and the 3 deckers are easy to fix and manage
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Eric Gross
Real Estate Agent · Cincinnati, OH · Member since 2017 · 44 posts · 10 votes
8y
I think people are starting to realize that prices are over inflated and because of that we are seeing more days on market. Yet at the same time inventory in my area remains low and prices are reflecting it. With interest rates rising, I expect there to be an impact on buyers which should help regulate the market.
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Eric Gross
Real Estate Agent · Cincinnati, OH · Member since 2017 · 44 posts · 10 votes
8y
I think people are starting to realize that prices are over inflated and because of that we are seeing more days on market. Yet at the same time inventory in my area remains low and prices are reflecting it. With interest rates rising, I expect there to be an impact on buyers which should help regulate the market.
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Vinay H.
Cambridge, MA · Member since 2017 · 268 posts · 247 votes
8y
Mark my words - the go go days will be back in Spring. Also the bankers will start approving easier loans around ... Bankers and loan officers also need to make quotas and earn bonuses ...
1 Reply
Troy GandeeBusiness Member
Real Estate Broker · Charleston, SC · Member since 2013 · 795 posts · 454 votes
8y
We're seeing some favorable trends in Charleston SC for buyers now. It's been a seller's market here for a little too long, so it's nice to transition into a new dynamic for the health of the market.
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
It's softening, but it's not a buyer's market yet.
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Jay M.
Contractor · Fairhaven, MA · Member since 2018 · 167 posts · 159 votes
8y
Originally posted by @Brian Ellis:
@Vinay H. Last year 2 br sIngle familIes were bringing In bidding wars. Now they cant even sell below market. Cambridge Is highly sought after area, especially for rentals, tough to use as a comparison. As far as the MF, It has slowed down a lIttle, but not as much as The SF. Price drops everywhere.
Brian, I'm down the road from you a few exits (Fairhaven). I'm seeing it cooling off around here. One of my builders has seen a noticeable slowdown. They've missed a few slots in the past couple of months building in the route 24 corridor.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Brad Braun:

Not in my market, we are in a seller's market on par with 2006 levels. Our seller's market is being driven by lack of inventory and amount of families moving here daily. We just had the best September on record and are starting October off very strongly due to demand. Days on market for most areas of Charleston is less than 7 days.
I love Charleston.. in fact its the only market I build in that buyers go to the trouble of looking up who owns the property ( me) and then finding my Oregon LLC then finding me and calling me.. these are new construction down town that I have going .. I have not had a property in Charleston I built in the last 5 years make it past 10 days on market past CO.. I sold my new build on 7 new st off market.
and unlike wholesalers I sold it for 300k more off market than I was going to list it for well really the market is just so UNIQUE in this area and its world class.. this is not like many other markets. unless your talking Palo Alto Cupertino or prime LA or prime east coast locations.
Charleston ROCKS you have water on three sides limited land OOOOOLD housing stock.. its wonderful
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Brad Braun
Realtor · Charleston, SC · Member since 2018 · 84 posts · 51 votes
8y
I have been in several "hot" markets in my lifetime, nothing like Charleston. Honestly as a resident, I'd love to see infrastructure changes on par with what's going on in Berkeley County, but at this point it's going to take an act of God to get our streets right. Charleston blows me away at how well the market does here. It's driven mainly from out of state money coming here in droves, but if you're in real estate, besides maybe LA and Manhattan, Chucktown is where it's at.
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Mike NussPro Member
Real Estate Entrepreneur · Portland, OR · Member since 2014 · 451 posts · 328 votes
8y
Originally posted by @Jay Hinrichs:

Originally posted by @Brad Braun:
Not in my market, we are in a seller's market on par with 2006 levels. Our seller's market is being driven by lack of inventory and amount of families moving here daily. We just had the best September on record and are starting October off very strongly due to demand. Days on market for most areas of Charleston is less than 7 days.
I love Charleston.. in fact its the only market I build in that buyers go to the trouble of looking up who owns the property ( me) and then finding my Oregon LLC then finding me and calling me.. these are new construction down town that I have going .. I have not had a property in Charleston I built in the last 5 years make it past 10 days on market past CO.. I sold my new build on 7 new st off market.
and unlike wholesalers I sold it for 300k more off market than I was going to list it for well really the market is just so UNIQUE in this area and its world class.. this is not like many other markets. unless your talking Palo Alto Cupertino or prime LA or prime east coast locations.
Charleston ROCKS you have water on three sides limited land OOOOOLD housing stock.. its wonderful
Man, so many hidden nuggets of national markets and valuation knowledge in this silly little post @Jay Hinrichs ; which probably wasn't even meant for knowledge or education. We need to get you back to a RareBird Investor Network meeting. You and I can just chat it out with a room full of hungry, question asking, real estate folk.....talk about how the underlying fundamentals of investment, capital, valuation, and flow/cycle of markets. Of course we would buy you beer :)
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Mike NussPro Member
Real Estate Entrepreneur · Portland, OR · Member since 2014 · 451 posts · 328 votes
8y
Market conditions are changing here in the Portland, OR market. Supply levels are increasing, which quickly gets framed as "increasing supply". However, in reality, we're really seeing a slow down in demand and not much increase in actual supply. In my opinion, we won't really tell where the market is at until next year, after the seasonal change Portland has gone back to over the past couple of winters.
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