What’s Happening with Housing near you

I don’t trust a lot of what the news says so I’d rather hear snippets from real people.

What is real estate doing near you?

I’m in the Midwest. Here I’ve seen several things transpiring.
I’ve seen some foreclosures. I’m seeing a lot of price reductions on houses.
New home builders are going to get slammed. I’m seeing a reduction the the prices of empty lots.

Apparently the building craze of 2019-2022 is starting to rear it’s ugly head. Builders couldn’t get materials and in turn started to use subpar quality materials to build. It’s not looking good. I’ve heard from many, don’t buy a house built in this time frame because it will be riddled with problems. It’s not one thing either, like a roof. People that purchased new houses during this time paid at the peak and looks like really poor quality. Disclaimer, of course it’s not 100% of houses and I’m generalizing, but a lot of houses built during that time.

From what I’m hearing we are not even touching the tip of the iceberg. Apparently this spring we will see how bad it is. There might be a flood of houses that will be competing with new builds. Interest rates will be even higher, and that means prices will have to come down, even if it is only temporary.

Are you seeing similar near you?

a reply to: JAGStorm

I'm in the metro Atlanta area. Slight softening in prices, but nothing significant yet. I have a few friends in real estate and they say that so far the local market is sustaining itself by people moving from high cost of living areas and/or paying cash.

the ones around here have gone up around 20% and still increasing, a house tends to last a could of days before finding a buyer.. but then I do live in one of the poorest areas in southern England.. so property is still cheap in comparison to the region 1/2 the price..

lots of money and buyers around.. even though local gov is green and left wing there are many new developments appearing. on any green space available, saving the world is secondary to increasing the local tax streams aka the public.. these are said to be affordable homes if you consider affordable to mean for the middle and not for the poor..

I expect we'll be seeing an increased in us$ buyers as it always happens when rates are like this, so that could factor into the us house markets as euro gbp and yen make house purchases in those areas appealing to investors looking for a tangible investment..

a reply to: JAGStorm

Are you seeing similar near you?

Not yet......and I don't know what to expect either. You have to remember that I live at the western edge of the Texas Hill country; there's no "tract" home subdivision building going on out here; all spec and mostly land transactions. People do purchase "acreage" for houses, typically 20 to 40 acres and in some cases half-acre lots. Then they build "barndo's" which are basically just all metal two story buildings. Cheapest way to build out here; it all comes in on trucks ready for assembly.

When the price collapse does start, it'll be toward the end of the cycle.

Thanks for your report however. I was wondering when I would start to see reports of real property/housing price colapse and the beginning of the foreclosure cycle. Feel really bad that people got caught up in that building spree and paid 5 times what they should have for new or existing stick built housing. Blackrock bought billions of dollars worth of housing. Whole neighborhoods. They turned them into rental units. We'll know it's bad when Blackrock starts reporting losses.....if they do report that is. They may try to bury the losses in transaction fees.

a reply to: JAGStorm

I live in the same state as you. A house, two doors away, sold last week, the day of listing, for 40k over asking price. It was listed for 30k more than the Zillow price.

a reply to: TonyS

What is sad is that a lot of smaller agricultural land was sold to developers here.
They scraped all the good stuff off and sold it and started plotting for lots/houses.

But.. they aren’t moving. How bad does it look when you are reducing prices of the lots from the get go.

A lot of these places should have stayed agricultural.

originally posted by: SourGrapes
a reply to: JAGStorm

I live in the same state as you. A house, two doors away, sold last week, the day of listing, for 40k over asking price. It was listed for 30k more than the Zillow price.

You must be closer to the suburbs/city.

It will take a minute before it hits in the populated areas that still has competition, but I have a feeling it’s going to happen.

originally posted by: JAGStorm

originally posted by: SourGrapes
a reply to: JAGStorm

I live in the same state as you. A house, two doors away, sold last week, the day of listing, for 40k over asking price. It was listed for 30k more than the Zillow price.

You must be closer to the suburbs/city.

It will take a minute before it hits in the populated areas that still has competition, but I have a feeling it’s going to happen.

Yes, suburbs of MKE. I'm in conservative Waukesha County.

As soon as the moratorium was lifted for evictions landlords jacked their prices up double+, then Biden ordered a national property value assessment.

Property was over-valued at the unstable market rate, increasing taxes up to double in some places. Lots of people need to unload property they can no longer afford the taxes on.

My area was hit hard; we've become a retirement community and the majority of the supporting workforce can no longer afford rent and still have any quality of life. Lack of affordable housing has been a huge problem in my area for decades; the population keeps growing, but there's no effort being put into affordable housing options.

The medical feild is now the highest wage earners in the US, so all the doctors, lawyers and such are still building their mansions on prime realestate.

The rich get richer and the poor get poorer.

originally posted by: JAGStorm
I don’t trust a lot of what the news says so I’d rather hear snippets from real people.

What is real estate doing near you?

I’m in the Midwest. Here I’ve seen several things transpiring.
I’ve seen some foreclosures. I’m seeing a lot of price reductions on houses.
New home builders are going to get slammed. I’m seeing a reduction the the prices of empty lots.

Apparently the building craze of 2019-2022 is starting to rear it’s ugly head. Builders couldn’t get materials and in turn started to use subpar quality materials to build. It’s not looking good. I’ve heard from many, don’t buy a house built in this time frame because it will be riddled with problems. It’s not one thing either, like a roof. People that purchased new houses during this time paid at the peak and looks like really poor quality. Disclaimer, of course it’s not 100% of houses and I’m generalizing, but a lot of houses built during that time.

From what I’m hearing we are not even touching the tip of the iceberg. Apparently this spring we will see how bad it is. There might be a flood of houses that will be competing with new builds. Interest rates will be even higher, and that means prices will have to come down, even if it is only temporary.

Are you seeing similar near you?

I'm seeing a lot of construction projects that have been stalled, some for several months now. Word is it's mostly due to lack of materials.

a reply to: AndyFromMichigan

For a long time it wasn’t just materials that was hard to get but LABOR.

I wanted to get a new door put on my house and messaged a guy about six months ago. He just now called me and is looking for work. The service industry is going to be interesting to watch. They have had the upper hand for a few years, but now people are pinching pennies and cancelling services like cleaning, remodeling, painting, landscaping etc.

Southwest Michigan here. Supply is up and prices are dropping. I few doors down has dropped 15% in the last 2 months. Nothing is selling unless it's under $200k then flippers are stupidly buying them.

Foreclosures are starting to kick in and summer rentals are trying to get people in for the winter for a summer price. Not working. Expect to see a mess by next summer.

Nothing realistic for renters under $1200 a month.

a reply to: JAGStorm

According to Zillow...my Florida home went up $17k in value in the past 30 days.
It went up $10k in the month previous.

We moved to Florida a year ago...and today I could sell it for $200k more than I paid.

a reply to: JAGStorm

Houses in my town in NE Ohio were selling very fast up until about 2 months ago. Houses were lasting about a week or less on the market at fairly high prices for the area. However, it seems to be slowing considerably, I have a neighbor that just moved to Cincinnati and their house has been on the market for 2 months now, that was unheard of in my town for at least the last couple years. It is a nice two story, about 1,800 sq ft. that is about 20 years old. It's still not sold and they have dropped the price considerably twice now, I think right now it's up for $170K.

a reply to: nugget1

The rich get richer and the poor get poorer.

as it ever was, my area one of the poorest had the lightest covid first wave which science put down to being too poor to go to the middle class ski resorts, catch it while partying and bring it home.. if you went by house prices on the uks first wave it spread through similar house price bands..

sometimes it helps to be poor..

a reply to: JAGStorm

I'm in E Peoria Hellinois.

The housing maket is great. Houses selling for way more than asking price. I don't understand why, but I've been told Cat is moving their headquarters back here. So that might explain it?

As for commercial property, it's tanked. I have well over 600,000 in my building/property and I'll be lucky to get 225,000.

a reply to: JAGStorm

Central San Diego. Less than 20% own in my neighborhood. And all the condos available start at around 850k.

A Canadian developer named Bosa is buying up entire blocks of it and turning them into residential towers only 6 figure incomes can afford.

New sleek buildings starting 4200/month for a one bedroom.

Bill Walton's Balboa Park adjacent property being encroached on has led to our progressive mayor being called out like a microcosm of Joe Biden.

Our independent conservative news station is all over this.

www.kusi.com...

So housing is easier if you have a tent. And if you actually want a roof you may find yourself asking, "Does my 800 dollar a month rent increase include the discarded syringe on the sidewalk? Just want to know."

But it forced the County and City to work together. They now have a goal of building 10k affordable units on city property by 2030. I think that's a euphemism for, "We're building projects".

a reply to: Degradation33

I left the area in '02 and my Carmel Mountain home was 725k. Can't even imagine what housing prices are these days.

I miss so cal, but NOT the price of living.

a reply to: Degradation33

New sleek buildings starting 4200/month for a one bedroom.

Of course rents where I am at aren’t at that level, BUT they are for the wages here!

We are going to see a shift in multi generational households again. There is no other way.

a reply to: SourGrapes

Everything along the 56 has gone insane. 725k is the lowest price for a cookie-cutter beige box with no yard.

Carmel Mountain Median price (around Grand Del Mar) is up to 1.15 million.