Wednesday, September 19, 2018

If you ever wondered how long some things can go on......

You can now stop. Lower sales and higher prices in real estate is not a thing anymore.

These price cuts are getting kinda exciting. It feels a little panicky because while in the spring you could sell a house in 6 days WITH NO CONTINGENCIES - houses are now starting to sit for months.

Just one example. A house a few blocks over from me is now under it's second markdown. The first one was for 40K, now it's marked down 126k. (That includes the 40) But "right pricing" doesn't seem to be stemming the problem yet. Those houses are still getting markdowns too.

This starts a wild feedback loop. I would be fairly certain that a lot of home improvement will start drying up. The equity you thought you had, you don't have anymore. No one puts money into their house if they don't think they will get it out.

Christmas might also be a little sketch. Lets see how this goes because we are still in full price discovery.

I mostly wouldn't even worry about this too much, but people owe a lot of money.


  1. Here in the Midwest, I am seeing the $1m plus houses sitting on the market >6 months even when dropping the price 20%. The $300k-$500k market seems to be very strong. $500k house here is probably $1.5m or so in your area. BunnyGoat

  2. Huh. That's interesting. The high end market does seem to be going through something. But pretty much everything here is getting hit to some degree.