Wednesday, July 24, 2019

And..... we are back in price discovery.

There is this house that I always kept an eye on. It was an old people house. I thought one day I would buy that house and flip it. But someone else bought it and had the same idea, which is fine because I am not in that market currently. The house needed to be brought back to life by someone.

Today I drove by it and it was still on the market. Four months later. The flipper did a pretty nice job, but this is about the point when agents give up on you. Real Estate is like a popularity contest. If you don't sell within two months, agents stop dropping by. If this goes on for too much longer that guy might lose his shirt.

So I had to go through the MLS where things were getting marked down after 6 days. Price reductions everywhere. Things had been being right priced there for a while, and I'd hoped that lower interest rates would perk the market up. But that doesn't appear to be happening.

Hell, someone is trying to get rid of a mobile home. They listed it for 219,000 on 9/18 and it's still on the market! It's now down to 185,000. A MOBLE HOME! It has marble countertops, and stainless steel appliances. It's pretty nice inside. Another mobile home is being marked down after 18 days and asking 176,833. Those two are the same size. And there is yet another mobile home taking a 15 grand price cut after 39 days. Started at 160,000. Now 145,000. It's very unusual to see this many mobile homes on the market. Clearly they are the cheapest places to live.

It looks like lots of contracts are falling out. Probably because we are back in price discovery. So it will be interesting to see what kind of rate cut we get.

Housing Bubble 2 Lost its Mojo in the San Francisco Bay Area: House Prices Drop 8%.

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