Is market softening? How does your local market look?

108 Replies

Originally posted by @Joanne Tsai:

@Michael Brattelli yeah, our neighborhood is still crazy for the starter homes, esp the ones that don't require work. It's common to see 10% or 15% over asking. 

I know in NYC, the market is cooling a little bit, which is common for July/Aug. In order for a unit to go quickly, it usually requires no renovation, everyone seems to be aware it's extremely difficult to find contractors and good labors these days. 

My buddy just sold his 3br/1.5ba condo in Blackwood NJ for 245k when just two years ago they bought it for 150k. I live in North Jersey in Phillipsburg and it’s the same deal up here for homes under 300k.

Tampa continues to have a fast DOM. We are not seeing as many crazy over the ask prices with contingencies waived. There are lots of price cuts in the mid to high market (600 - 800k). However, anything under 600K which is priced right in a good neighborhood is moving.

I anticipate that with possible lockdowns in the NE and California due to the Delta variant we will see an additional lift from out-of-state buyers.

Still hot in East Texas. Property that sold for 360k last year just sold for 488k. Haven’t seen much in the multi-family area (haven’t looked hard), but single families are getting bought quickly and for prices over 25% higher than last year. 

I spoke to my commercial banker not too long ago -- he said his bank is approving 45-50% DTI ratios for residential loans.

In other words, there is a bubble being inflated without a doubt -- only question is: when does it burst? 

that's interesting, I've heard lenders are very strict of giving out loans because they think the market is going to tank soon. 

Originally posted by @AP Horvath :

I spoke to my commercial banker not too long ago -- he said his bank is approving 45-50% DTI ratios for residential loans.

In other words, there is a bubble being inflated without a doubt -- only question is: when does it burst? 

I cannot speak to the SFH market in California, but I have been watching the condo/townhouse market in a ski resort town composed primarily of second homeowners and STR. That very niche market seems like it's slowing down to me, but it's probably more of a pullback in a long-term channel of rising prices--maybe the result of seasonality or buyer fatigure. Remodeled properties that are on the low end of the price range tend to go quickly. Others are languishing on the market when they need a lot of work or are overpriced.

Our market in Brevard County FL has slightly softened. Over the past 4 months, inventory has increased 40 percent or so - from 700 to 1200 available properties, still a massive shortage of homes as compared to the 3500-4000 on the market just last year. Less offers as compared to 50 on a property before ect. It's getting to more of a less frantic market.