Is market softening? How does your local market look?

108 Replies

Don't follow mainstream media (MSM). They've ruined enough of the economy as it is. Follow your local MLS board instead for accurate information. Those results are more accurate and speak for themselves.

@Joanne Tsai

Atlanta - I think a lot of retail buyers have taken to the sidelines. I’m seeing some price reductions on distressed properties, but I also see some freshly finished flips still reaching for the stars and seem to be sitting longer than you would think they would. We shall see.

@Joanne Tsai Still very hot here in West Michigan. I know people who are trying to buy a house and offers are going way over lust price, dropping all contingencies, including inspections and they still can’t get a place! I think I was lucky to get the duplex I’m just closing on for just 5K over the list price.

Originally posted by @Jeremy Komer :

@Joanne Tsai

It's hot compared to pre pandemic market but not as hot as several months ago.

Now some good properties sit for a couple weeks, overpriced properties have to cut prices to reality, etc

But SFH that are in good condition and in good neighborhoods still sell within a few days to a week.

Eventually the crazy train had to slow down, you crammed two years if demand into 6-8 months.

The market is going to remain a sellers market for the foreseeable future though, just not enough supply to satisfy the demand and that will take years or a recession to fix.

Builders in Cincinnati can sell anything new for 600k+, where this money is coming from I don't know, but if there is no motivation to build smaller affordable homes so at least in my area it's going to be a sellers market for a while.

Wholeheartedly agree. I'm seeing a lot more multi-family come on the market recently, and a lot more of it is priced a bit more reasonably, but it is still a seller's market for sure. I don't see any reason why it won't continue that way for a while. 

@Kumi Hodge your area is where we used to live (Albany/Berkeley)..... we left in 2017, and we thought the price at that point was already very high, only now we see a shed is asking over 1M in the neighborhood! it seems the eviction moratorium "will" end in Sep, supposedly that will ease on the inventory side, though I suspect they will just continue to extend it. CA never disappoints ;)

While interest rate is historically low, I wonder how many family is not house poor at this point. After paying 10% state tax and expensive gas/service and the mortgage, how much disposable income do people have left after.......

@Joanne Tsai I’m in north Georgia / Blue Ridge area and I do not see a significant softening in the market. Still very much a hot seller’s market with perhaps a slight increase in inventory or days on market

I think the volume of transactions is about the same, but the price delta to homes sold above list has dropped dramatically

For context: I'm CEO of a transaction coordination company. We see a lot of files across a ton of agents across multiple states.

Roughly 60 days ago, 100% of the files our company were working on were homes under contract above list price. It's the first time I've ever seen that before

Now, it's about ~20% of our files are transactions that are under contract above list. It's been a HUGE drop

Originally posted by @Joanne Tsai :

@Sean O'Dowd

That’s very interesting stats, has the price gone up much since 60 days ago?

Do you have the % of transaction done at listing price vs below?

It's been a fairly steady decline since 60 days ago. 

Almost all are within ~5% of list price, so there is definitely a tight bunching around list price. 

Said differently, offering list is now a competitive offer. 60 days ago, offering list was't very competitive

Definitely softening in Milwaukee area. Buyers are burned out from touring, offering and getting a rejection letter. Buyers have taken a vacation in July (best month in WI), and I expect will be back on after school starts up. Sellers are not seeing 30+ offers within the first 2 days. It takes a good week to get 1-2 offers now, if the house is not overpriced. There are some homes sitting for 45days+ even.

Here in the greater Phoenix area we are still in a white hot seller's market. There a few signs things are peaking and may cool soon, but sellers still hold all the cards here in Phoenix. 

Softening in Kenosha Co & Racine Co Wisco as well.  Buyers want to get off the crazy carnival ride that for many has been more frustration than anything else. There are experienced investors that are looking at the speed demon roller coaster that was May June July and sat it out because it was like running the gauntlet. 

I feel like it has.  Kinda making me nervous about a flip I have in the works.  Fingers crossed it stays strong enough for a decent profit 

@Deanna Lawrence - you're correct. I'm in the Branson area and anything on/around the lake is usually under contract before it hits the MLS. Multi-families are still going pretty quickly. The houses I'm seeing with longer DOM are usually the much older homes.

Agree with all of the above. The market is not softening, it is getting healthier - what we have seen this spring was dysfunctional. By any historic measure we are still in a very hot market; slower than spring, but that is faster than anything we have seen in the last 20 years.

McAllen-Edinburg TX area seems to be cooling off. I'm seeing homes in desirable areas stay on the MLS for a week plus. The market is still tight and moves fast but I feel like it is cooling here.

My area of orange county (irvine, costa mesa, tustin) is still very hot most of my friends looking to buy are being outbid with cash offers going 50k over asking price, but i think itll always be like that out here.

Hello Jessie Kristie, For a start in Researching for the pertinate Data, you can watch the youtube videos especially..."2021 Housing Crisis in YOUR CITY? Look at these 3 Metrics..." and do your daily, due dilligence Searches on Zillow and the MLS.

@Rob Lee

That still means above listing price, correct? Do you have a sense how much over the asking? And are buyers still waiving contingencies?

Thanks for the insight!

@Michael Haynes

I watched a few youtubers on real estate but I find him lack of knowledge in macro economics. His understanding of monetary policy and how it impacts RE is not very comprehensive. We realized that from the clip where he talked about blackrock and other public traded companies (he does not understand how these companies work for their investors and SEC rules/regulations to be traded companies). And his understanding of CPI and how it indicates inflation….. again, not very impressive……

Some of his thoughts and data are interesting but I would recommend to always verify his conclusion. I also think he doesn’t invest in RE, unlike MeetKevin or Jason Hartman to name a few.