Which markets have you seen downturn?

5 Replies

Curious to know if any of your markets are seeing a decline in prices and why? Are there specific types of properties you're seeing decline right now? Here in San Diego the market is on fire. No indication of decline with the SFH's that are being listed.

For Residential stats...

In my market there is a drop of inventory(43% down from last year during the Summer). Sellers are less willing to list and there isn't as many REO properties. There was also a drop in sales due to Covid. The prices have been similar to last year(a little lower) so they are stagnant. Homes are selling within a week and it is very competitive due to low inventory. Sellers are receiving what they list it for or more. I think 3rd and 4th Quarter will be slowly be better just depends on how willing people are to sell.

Originally posted by @Kevin Gamboa :

Curious to know if any of your markets are seeing a decline in prices and why? Are there specific types of properties you're seeing decline right now? Here in San Diego the market is on fire. No indication of decline with the SFH's that are being listed.

San Diego just set a new median high price for residential RE. However listings have been way down since March so the supply has been reduced. This combined with cheap money (lowest interest rate) results in the high prices.

The low listings indicates there is a backlog of listings. Combine this with San Diego's unemployment rate being higher than the national average and recently an all time high, the long duration of lost STR rents in a high number STR market (we are down over $60k in lost STR rents), the rent eviction moratorium with limited options for the LL to collect delinquent rents, state wide rent control, number of local RE investors relying on appreciation for any return on their investment imply there are many downward indicators.

Reduced return typically result in price reductions.  For now, the limited supply and cheap money have been able to not only keep prices stable, but have increased the local RE prices.   how long can it last?