Posted on 01/22/2019 9:05:41 PM PST by dila813
U.S. housing sales, a key pillar of economic growth in recent years, are looking weaker again.
Existing home sales declined for much of 2018. In December, according to the National Association of Realtors, sales of single-family homes, condos, and co-ops fell a larger-than-expected 6.4% from the previous month. A Reuters survey of economists projected home sales to decline by a modest 1% in December.
(Excerpt) Read more at fortune.com ...
My son and wife own a business in Mountain View and were renting a house in Redwood City. The home owner decided to sell, so they moved out before Christmas. They are probably going to relocate to Reno. Market is insane and the business climate is actively hostile.
In our neighborhood of Chandler, suburb of Phoenix, there are a number of houses for sale that have not moved. My wife, who keeps up on this, says they are all overpriced by $50-80,000. I think people’s expectations about what prices are is disconnected with the actual value of housing.
We got a steal on our house here-—but then again we took a bath leaving OH because we were carrying two mortgages. Younger people do NOT want “starter homes” and expect to walk into a $500,000 home.
Watch “house hunters” or any variation of that show. Don’t know where they are getting the money, even with two earners.
We’re in SW WI in an area with the sort of jobs and private schools that attract young progressives.
Our property has been on the market for 2 years. The price is *high* (we’ve dropped it in increments by $70k), but it is 80+ acres of pristine land that has been fallow for over 20 years and well-cared for, but is landlocked and cannot be sold separately, by law, 1000 feet of frontage on a Class A National Trout Stream that is across a quiet county road, 2100 sq foot home originally built in 1912 and added to (needs upgrades),a 1600 sq ft building that is shop on the lower floor and an art/craft studio upper (heat & a/c, no water)and a couple of sturdy shed buildings. We are 15 minutes from what is known as a ‘happening’ town. I will briefly describe the prospects we remember:
Millenials set to start executive positions at the largest organic dairy co-op in the country. Wife stood in the driveway and did a 360, then announced the land was ok, but they would gut the house.Husband said “I don’t give a sh**. This is her idea” Ended up renting in town.
Young family, parents and adult siblings. One liked it all, the other didn’t like the house.
Couple from NYC, husband was a professor. Wanted us to build a road to the back 40(about $100k with county/state oversight required). Wanted to do ‘prairie restoration’ (this is hill country, driftless area, not prairie.) Ended up making an offer and setting up escrow on another property, specified all new appliances and then reneged on the offer. Last heard, lawyers were involved.
Older couple looking for adult son who wanted to “grow trees”. Loved it all. Son was last heard of in Thailand. Son is ‘in the solar energy business’.
Young couple who own 2 homes in the Chicago area, came back several times and spent time on the acreage. Liked everything but cannot sell their Illinois properties.
Young couple who had a plan for a permaculture set-up. In the end, they cannot sell their Seattle property. Their financial planner told them they can’t afford this property. Their business advisor told them their plan was flawed.
BTW, their plan was to run heritage hogs in a draw that drains into a river. Who has financial planners and business managers w/o a business in their 30s? Is this common?
Young couple with kids, loved the land, wanted ‘some land’, not the house/buildings. Husband wanted to ‘restore the land for wildlife.’ It is pristine and full of deer, turkeys and other critters, apples, oaks, blackberries. Have property in Madison area, which we hear via children of friends is all very high priced/high taxed. Came back several times and requested to view the house in the evening December 30.
Hunters from Colorado who wanted hunting land and were outraged at the price, which is lower than comparable land in CO. Realtor called them on their unreasonable expectations with no real result.
3 of the above were rude and condescending. One left us with the impression that they were going to be trouble of the demanding and abrasive sort. Most seemed to be angling for a lower price.
We are listed with a nationwide realty company. Marketing is good. Realtors do their job and follow up. Several showings by other realtors.
Many people want a turnkey dream house or land only. They have unrealistic ideas of going prices (locally, .85/ac with river through it, which means it likely floods,is currently listed at $69k. Comparables are $2300-$2700/acre not including the waterfront or improvements). They have only a vague idea of rural life.
For contrast, we bought a 6-room, 63-year-old hand-built house with a few improvements like plumbing and propane heat and a tottering 1950s barn and put in over $150k of improvements with mostly our own labor over 43 years. We turned former hay and corn land into meadow, with groomed trails. It is superb hunting and fishing land. Taxes are currently low due to managed forest and the price we paid in 1975. The house needs kitchen and some floor covering upgrades we cannot afford at the moment. Our plan going forward is to further reduce the price, specify all or nothing (no separate land sale) and as-is.
Most national stats are for houses in towns. Conventional mortgages don’t cover excess land unless you use Federal Farmers Home programs and this property has not been cropped for decades.
Anyway, just the view from where I sit.
Great question and I am sure the data is out there somewhere. Anecdotally, the market in Spartanburg slowed dramatically last October, most notably in new construction. It seems to be one of demand. The economy here is good, but had shifted from growth to stability. That and affordability on $20 an hour wage.
As a landlord, my property taxes are 100% deductible as a business expense. The long-term result of this will be to turn the US into a nation of renters.
IMHO renters are ripe for a socialist takeover, owners not so much...
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Landlords are the new kulaks.
Progs always look ahead. This is the set-up for the next victim class they can exploit: renters.Guess who the next privileged oppressor class will be?
Maybe they can buy a “Tiny House” as a starter.
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Have you seen tiny house prices? Astronomical for what is really a tricked out shed on wheels that needs a full-size truck to move. Most prog areas are taxing the he!! out of the ones they allow.
Here, there has been an explosion of apartment construction. It is easy and cheap to rent
...offering TO BUY my house FOR CASH ......
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Flippers. They offer below market, trick it out for quick resale and on to the next.
Younger people do NOT want “starter homes” and expect to walk into a $500,000 home.
Watch “house hunters” or any variation of that show. Don’t know where they are getting the money, even with two earners.
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This jibes with our selling experiences the past 2 years.
Some of these buyers are getting ‘1st time home owner’ program deals with low-to-0 down.
Because the Dems won the House and folks are wary of the economy taking a nose dive.
Sales of homes fell in December...
Sales of homes always fall in December, right?
How is this news?
Theyve been predicting for decades that there aren’t enough people in the younger generations to maintain ownership levels of the exidsting housing stock. Combine that with those generations being highly leveraged with college loans, putting off marriage & families, and you got what you got. Bottom line: It was going to happen at some point, and maybe we are “there” now,
I noticed my neighbor selling his house for 50k more than I paid for my house and it is half the size of mine with a lot half its size. Still hasn’t sold.
China is not crashing.
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Sure..... That’s why their numbers suck ,, even the upwardly manipulated gov’t numbers suck... Australia , a huge trading partner of their (a natural resource supplier) is seeing the slowdown in China firsthand... and in China itself the slowdown is so apparent that Foreigners are being targeted by everyday people for abuse ,, not just abuse by government entities... maybe you’re right ,, maybe it has already crashed...
re: “Flippers.”
The economy must be good; I never had the number of “offers” as I have had the last several years ...
My taxes for a quarter acre with house is more than 15 times your taxes. Its not that my house cost so much. Its that its in Illinois, the highest property taxes in the nation.
Goodness. Looks like some of my extended narratives. Sounds like a nice place.
We sold our house of 21 years three years ago this summer. Took about what I expected except for the recommended updates. Seems wall paper is out when we sold etc. Can’t recall how many times we showed it, maybe 8? Had two offers and 6 sets of snide remarks that made me wonder why they even looked. If you can’t tell what a place is from the extensive pictures on the internet marketing spaces now days you are either dumb or a fraud. Some were simply tire kicking, about half and looked like gutter trash with no business looking at $600K homes. The realtor should have never brought them around. I think these people are just looking for something to steal.
Your couple with the business advisor etc. seem to be the trend. They have been brainwahsed into believing this is an essential. Pretty airy fairy to me. Normal today isn’t normal to me.
Your young family, parents and adult siblings? Reminds me of a husband and wife with his widowed sister who made an offer. They each planned to buy in a three way partnership. Odd all the way ‘round.
Rude? Yes, and then some. Decorum and decency have all but vanished. I steer clear of most people because they mostly disgust and offend me.
I’d like to move your trout stream to my place. Good luck.
maybe because they are building like crazy and there really isnt the need for all the new homes?
That’s what happening in my area of Florida. And all the 10-15 year old houses that were cheaply built at the height of the last housing boom now need new a/c, roof, stucco, etc. So people are buying slightly smaller new houses rather than traditional resale homes.
Who has financial planners and business managers w/o a business in their 30s?
Trust fund babies.
Now; adjust all those numbers for inflation.
I bought my first brand-new car in ‘74 for $3,750.
My last one in 2011 for $33,000.
Which actually cost more?
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