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In US Housing, A ‘Decisive Shift’
We're witnessing "a decisive shift" in the US housing market.
Specifically, it's shifting decisivel
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I don’t know to what extent, but I’m fairly sure these sorts of market-wide numbers dominated by the large urban markets for home prices. What I’ve noticed in some of my area of the Midwestern US is that demand for recreational property (hunting, off-grid, outdoorsy, northern waterfronts) is waaaaayyyy off. A few places are selling, but often at 20, 30, 40% off their listing price and after many months on the market. Underpriced properties can sell quickly, but that that’s all that is selling quickly, or at asking price. What’s it all mean? These aren’t huge deals, mostly in the 50-300k range, but the people who can buy those properties seem to be stepping back and rethinking priorities. Necessity purchases (homes to live in) Yes, Discretionary purchases Not So Much.
Here in Florida, prices are scoffed at within the central area and the sentiment is spreading outward rapidly. One of my best friends in Tampa just had a Tower of Babel sized townhouse site go up next to his place that looks so out of place for his neighborhood that I now know what street to turn on because it’s such an eyesore. Only one has been occupied of the three and they’re asking almost $1M for each of the units. Residents hate it and the parking situation is something akin to a college bar. There’s a sense of desperation in new construction that feels as if we’re still in 2021 and people long for something to live in that will appreciate within a year. As you said, the only things selling are discounted and more people are looking outward to parts of Florida that once seemed ‘too country’ as absolute deals because more and more buyers will wake up to the realization that occupying an area that has been discounted will bring commercial business there quickly.