Thursday, August 22, 2019

We are definitely in a declining market.

There are some crazy things happening in real estate in my city.

First - I have five Mobile homes on the market. When it's unusual to see one.

I also ran across a really modest house in a nice neighborhood. Looks well enough kept. They put it on the market Oct last year for 775,000.  It's a 3 bed 1 and a half bath -  slightly less than 1300 square foot house.

In November of last year they lowered the price by 15 grand. That made no difference. They removed the listing in January. Re-listed it on August 8th for 634,572. That's a 140,428.  price cut. They had been bumping it down a few grand every few days to 626,381. Now it's up for auction.

If I had to guess - the price cuts triggered them to be in negative equity and they gave up. There have been so many price revisions that I can't see past last year so I am only speculating.

It's been a long time since we have had a zero bid market. Especially for what most would consider a starter house. It's the first one I've seen since the grand ol' days of the recession. Previously things had just been sitting a while. So I wouldn't draw too much yet. But if we are getting to that point in the market.......... it's gonna get cray cray.

This type of stuff will definitely cause shivers through the economy. If that is your neighborhood - everyone in that neighborhood knows about that house. And that kind of stuff spreads like wildfire.

This is why Trump is banging the drums on rate cuts.

2 comments:

  1. Hello She Said, just for clarification "[you] have five Mobile homes on the market". You are selling five or see five are for sale? You have been calling a market top, just wondering if you are getting out of the rental market. Which is two questions, sorry.

    ReplyDelete
  2. There are five on the market .You almost never see them. I haven't bought anything since my rental.

    I am not currently planning to exit my rental. Things have finally smoothed out over there. I've had a tenant for about 4 years now. A good property manager that sometimes makes me forget I even have it. The first 4 years - the opposite of that! I only lightly raise the rent which isn't a problem since rents have kinda been going sideways for a couple of years.

    I've never liked being a landlord and I never expected to keep that place. Here I am - 10 years later. It's stupid.

    ReplyDelete