Are prices dropping yet?

Member since 2018 · 48 posts · 12 votes

I see the signs on the wall of a slowing economy, but I'm not seeing a huge drop in prices at least in NYC. What is everyone seeing across the country?

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Mike Dymski

Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes

Originally posted by @Roger R.:

I see the signs on the wall of a slowing economy

Tell that to the Federal Reserve.

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Jeremy TaggartBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
7y
@Roger R. still going strong here in the Pittsburgh area
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
we are for sure seeing plateau's in owner occ stuff and some discounts on higher end stuff..
150k and under investor grade see no real slow down or price concessions.. as there is a run to cash flow.
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Account Closed
Member since 2018 · 214 posts · 175 votes
7y
In Las Vegas, properties below $200k are still going up.
Same floor plan Townhouse that was sold for $180k in Dec 2017, is sold at $235k in Dec 2018.
Same floor plan condo that was sold for $125k in Aug 2018, is sold at $145k in Nov 2018.
Is the price slowing down?...
Not the properties below $200k...
3 Reply
Paul Choi
Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
7y
In SFH, seeing sellers reduce their asking prices to garner interest but not by much. ie...$975k to 950k.
In general, it has definitely started flat lined at the least.
6 Reply
Marisa R.
Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
7y
Not seeing a slow down in Atlanta or Detroit.
I expect that we are closer to the peak in Atlanta, but it will be fragmented. I think Beltline will keep buzzing along.
Detroit is ramping up.... no slow down here
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Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
7y
Originally posted by @Roger R.:

I see the signs on the wall of a slowing economy
Tell that to the Federal Reserve.
12 Reply
Scott Morongell
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Roger R. if your able to buy in a city where rent is around 30% or less of the median income there is typically room for growth still. I'm basing this off markets i'm invested in and NYC is not one of them.
5 Reply
Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Originally posted by @Account Closed:
Las Vegas condotels have been on a tear since Summer months of 2018. Lows 3 years ago.
Stock Market on a TEAR since 2008 till 2018.
Please don't think what happens in stock market doesn't happen in RE.
Problem is no one knows when or the degree.
My stock portfolio not doing all that great. I like that joke my 401k is now a 301k.
"Residents Should Not Panic": Thousands Of Las Vegas Homes Get ZERO Offers For November 2018 New data published by the Greater Las Vegas Association of Realtors shows 10,000 single-family homes were on the market and by the end of November, 7,000 of those homes had zero offers, up 54% compared to 2017 and the highest number of homes in Las Vegas Valley to not get a bid in more than two years.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Account Closed:

In Las Vegas, properties below $200k are still going up.
Same floor plan Townhouse that was sold for $180k in Dec 2017, is sold at $235k in Dec 2018.
Same floor plan condo that was sold for $125k in Aug 2018, is sold at $145k in Nov 2018.
Is the price slowing down?...
Not the properties below $200k...
yup I have a vegas flip under 250k sold in 5 days
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Account Closed
Member since 2018 · 214 posts · 175 votes
7y
Originally posted by @Account Closed:

Originally posted by @Account Closed:

Las Vegas condotels have been on a tear since Summer months of 2018. Lows 3 years ago.
Stock Market on a TEAR since 2008 till 2018.
Please don't think what happens in stock market doesn't happen in RE.
Problem is no one knows when or the degree.
My stock portfolio not doing all that great. I like that joke my 401k is now a 301k.
"Residents Should Not Panic": Thousands Of Las Vegas Homes Get ZERO Offers For November 2018 New data published by the Greater Las Vegas Association of Realtors shows 10,000 single-family homes were on the market and by the end of November, 7,000 of those homes had zero offers, up 54% compared to 2017 and the highest number of homes in Las Vegas Valley to not get a bid in more than two years.
During last recession, Las Vegas had 20,000 to 30,000 homes without offer.
Compare 7000 homes without offers to 20,000 homes in year 2008...
Las Vegas is still in a seller market today...
1 Reply
Meghan McCallum
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
7y
I have a friend who flips over 600 homes in Vegas each year. HE is doing great and still kicking ***. He is seeing the newbies get creamed already. He is warning for newbies to leave it to the pros at this point. I trust him because he doesn't have or fear any competition out there. He just tells me like it is.
5 Reply
Matt Nusbaum
Rental Property Investor · Annapolis, MD · Member since 2011 · 232 posts · 170 votes
7y
In Tampa... seeing some flattening out but not much
1 Reply
Eric Carr
Real Estate Broker · Los Angeles, CA · Member since 2017 · 655 posts · 293 votes
7y
Things are slowing down in some markets like LA, LV, AZ, Dallas, Seattle, Denver, but the slow down hasn't equaled price drops per say. Take LA, homes priced correctly are still selling within 35 days. Appreciation has slowed, the market has neutralized, but I don't see any reversing yet. Not a crash. The craze over the past 5 years is definitely cooling off. The bond markets are scary, so is the stock volatility, and while not all RE locales have recovered to pre-crash levels, for all intents and purposes, I believe we are at the top of the market for most major areas. Detroit I believe, has a long way up to move yet. We will see what happens. If the economy hits the rocks, so will the RE recovery
5 Reply
Brian Ploszay
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
7y
Parts of the residential market are slower - such as luxury housing. But most of us here are investors with rental portfolios. A type of correction may be starting with multi-family. Not necessarily a major price correction, but a drop in transaction volume. So new buyers think things are overpriced. Sellers are not adjusting their prices quickly. So fewer deals happening.
2 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
7y
So there are less houses without an offer than in 2016....we're people saying the housing market was slow 2 years ago? 3500 houses sold per month on average so now a 2 month supply is too much? I thought we wanted 6 months (18,000) just to be balanced? Plus the 7,000 SFR includes 2000 condos. Very different market than houses in Vegas.
Part of it is sellers here will rarely drop their price. If they can’t getting asking or within a few percent they either let it go stale or pull it back off market. Either they have a plan for a certain amount of money or don’t want to sell without making a killing.
December may be a fast selling time of the year in other markets but not vegas. If demand goes down after school gets out we can worry about a plateau especially as it seems the feds are finally going to pause after this next rate increase, although before woulda been better. With the nations 2nd fastest rising rents this year after Phoenix, all the better.
2 Reply
Eric Veronica
Lender · Cleveland, OH · Member since 2011 · 588 posts · 437 votes
7y
Detroit is a different market. Truly the tale of 2 cities. Having closed 100+ mortgages in Detroit the past few years we are seeing prices still rise be the average price is deceiving.
Downtown/midtown/Corktown/New Center/The villages are seeing $400sqft or higher. Most of the other neighborhoods have good homes at $40sq ft.
Anecdotally I am seeing more buyers in the low-mid level while some of the higher end luxury seem to be sitting.
2 Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
7y
MF is still overpriced in my market-western Wa. We are 2-3 hrs SW of Seattle; so not much to do with that market. If the 'investment' does not provide an acceptable return to me I do not see the point. Just keep looking, something that meets my criteria will come along. Primarily looking for 6-20 unit buildings.
1 Reply
Chelsie Runnings
Real Estate Agent · Sonoma County · Member since 2016 · 55 posts · 29 votes
7y
In Sonoma County we saw a 3.5% decrease in price from November 2017. We lost over 5,300 homes in the Wine Country fires last October. Making the inventory of available homes was unseasonably low for the last three months of last year. The inventory of homes and condominiums available in Sonoma County at the end of November stands at 1,018, 90% ahead of the inventory in November 2017 (535) and down 12% from the inventory last month (1,160). A relatively high inventory for recent years but not an unreasonably high number for historical purposes. Some of the percentages are quite high comparing this year to last and that is partly driven by the fires last year.
2 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
7y
They have started to top off but we haven't crashed ...yet.
2 Reply
Melissa Dinas
South Metro Atlanta · Member since 2017 · 69 posts · 22 votes
7y
@Account Closed
Care to expand on your 2 statements? I'm genuinely interested in what you mean....
"Im really worried for the people who bought recently at disgusting rent to price ratios. They are going to get CREAMED. No doubt in my mind."
"Bills 100% recession indicator. That Asian Resort next to the Trump International is due to come online in 2020. Are we really supposed to think they going to OPEN to a booming economy?"
1 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
7y
Northern CO area. Prices are softening, and homes are sitting longer than earlier in the year, but DOM is still ridiculously low. 30-60 days. Homes are no longer selling for above asking, but they're not seeing much discount. 1-2% maybe.
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Matt R.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Mostly topped out in LA LA land. No real price reductions on the sub one mil yet and about the same prices as one year ago for a zero appreciation rate past 12 mo looks like.
1 Reply
Ethan Henning
Real Estate Agent · Atlanta, GA · Member since 2015 · 295 posts · 117 votes
7y
I am not seeing a drop in Atlanta except in certain pockets. One of my investors just sold/closed a property with 12 DOM full list price in the 440 price range on the retail side.
1 Reply
Bryan Blankenship
Investor · Cincinnati, OH · Member since 2014 · 538 posts · 432 votes
7y
Southern Ohio for sure - Higher end($250k+)has been dropping since September. Very slight decreases but dropping none-the-less.
2 Reply
Andrew Neal
Real Estate Professional · Brentwood CA / Dallas, TX · Member since 2016 · 185 posts · 146 votes
7y
I have recently seen some "price cuts" when browsing Redfin in my residential area here in the far East Bay Area but most of those seem to be minor cuts to gain some additional traction to a price that was probably unrealistic in the first place. Sellers still seem to think that the market is the same it was a year ago and it's not. Also buyers seem to be getting more scared because of rates rising and all the headlines about the market getting ready to implode (which it most likely won't).
I did recently see a home that I toured about 7 months ago when my wife and I were in the market for a primary residence that was a 3/2, 1,650 sq.ft. listed for around $499K and relisted this month for $558K. It will probably sell around that or slightly lower. So the market is still trending up for us but slower.
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