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US Home Sellers Outnumber Buyers By Record Half-Million
If you make $100,000 or more, can scrape together a respectable downpayment and your credit score's
The inventory needs to build more and turnover needs to stagnate more for significant price cuts. It will likely happen, unless the fomc starts to cut soon and aggressively and the economy holds up.
I give it 75% odds of price cuts. it will likely lag inflation and income growth for the next 3-5 years.
In my area, prices are already down about 5–7% from their peak, and inventory keeps rising. The place I sold in 2022 is back on the market for $40,000 less than I sold it for, even after the new owner put $50,000 into renovations.
Even with that price cut, it would still cost more to buy my old place today than I’m paying for my new one. Meanwhile, rents have dropped, and you can find a pretty nice rental for much less than a mortgage right now.
I think prices need to fall about 15% from the peak before the math starts to make sense for buyers at current interest rates.
Pretty much the same situation where I live. Inventory is building up, of the ca 20 villas for sale in my area – c. 15 are being listed for 2nd or 3rd time with a new agent but at the same prices. Instead of reducing the price, seller believe that another agent is the trick… Agree that we are likely to see at least a 10% reduction from here.
Here come the cuts.
Haha, thanks for the color H.
It takes a while for sellers’ agents to back away from the rosy picture they painted to get the listing (or for over optimistic sellers to get real). My wife was executor for a SW Florida beachfront condo and some prime Iowa farmland, both of which she unloaded quickly at “under market” prices in private sales last fall. Her sisters bitched and moaned at the time that she could have got more, but comps for both have only headed south since then. Take the money and run!