Point breeze bubble burst?

8 Replies

Hi everyone, we finally got out 1st flip on the market back in June and traffic has been super slow. We've been keeping our eye on sales and it looks like a lot of things are sitting for quite some time now and am wondering if it's an indication that the bubble has burst for the point breeze neighborhood. Additionally, we're not seeing the ARV's on the ones that have sold to be what they were 6 months ago. Anyone have any thoughts or insight on that?

Trying not to be too nervous but am just wondering what everyone else might be seeing.  Mortgage rates are down so what are other factors to be aware of in this market?

Thanks!


Hi @Joe Hudson  

The data seems to show that prices are still rising on the whole and Days on Market are still low.

However, in some areas it seems like we are seeing a peak.  Specifically locations like Point Breeze that have seen rapid price increases recently.

If you are not getting showings then you either need to market the property better or lower the price.


Thanks Michael. We've lowered the price 3x now and still nothing.  Based on the comps we've been given, we're even on the low side which is sparking my anxiousness.  We've been told that our finishes are some of the best they've seen so I'm confident it's not that.

Joe,

You are on point regarding that specific neighborhood. I would focus on what exactly is holding your sale. I will be more than happy to look at the pics and finishes and give you my opinion. 

I have flipped and build new construction there so I can share my experience with you.


Thanks @Irfan Raza but the question really was to obtain some thoughts on if Point Breeze's bubble has burst.  Not only for our current flip but in consideration of future ones in the neighborhood.  

Id say 90% of people who come on BP asking things about the market because their flip is sitting, post their address, and then everyone tells them exactly why it isnt selling. Happens time and time and time again.  Post the address and you will find out whats wrong with yours that you are overlooking.

 @ @Joe Hudson  I listed back in May and I've been seeing price drops pretty unanimously since that time, so I wondering the same thing. Perhaps it is not a bubble, but I do feel like the market in Point Breeze is weaker than expected, or at the very least we seemed to hit a price point that the market would not take. I just completed a cash-out refi and the appraisal came back around what I had the place listed for, but I didn't receive any offers. I probably would need to go down another 10-15k to get in range of current buyers. 

Over the past year, I've seen a lot of newly rehabbed homes come on the market at a price point well above $400k and nearly all of them ended up dropping quite a bit.

I am interested to see if other people have noticed the same 


The same thing happened to me in West Philly.  I thought I had a beauty and when it didn't "fly" I got worried.  I feel that we're in a delicate time in the market.  Even though the numbers are still strong, there's a lot of economic uncertainty.  I've always believed you can have the best finishes, lawncare, etc. but price sells the property.  Make a bold move.  Drop it to a level that will matter to buyers. As investors we know that edging downward just shows your weak hand when it comes to offers.   If you take a "haircut" on this one, so be it.  That's what we have to do sometimes.  You'll make it up on the next one.  Or, rent...  (that's what I did).

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