Pending home sales drop to lowest level ever recorded...

[Missourian]

Pending home sales drop to a record low, even worse than during the financial crisis

Mortgage rates in October rose sharply, with the average on the 30-year fixed loan briefly eclipsing 8%.

www.cnbc.com

Comment: There's good news and bad news...

The good news is housing prices will likely drop.

The bad news...a glut of unsold homes will depress the new home building market which is yet another hit to an already soured economy.

Very bad for my industry...flatbed trucking.

 

[DGS49]

Whoa! Talk about misreading the facts. The sales are low because of a LACK OF INVENTORY. People are holding on to their homes. Don't want to go through the usual pattern of selling your "smaller" house and buying something bigger, or selling your big house and moving to a condo. Interest rates are still too fucking high.

Lack of inventory. It's not a problem unless you are a real estate agent. The people being harmed are those seeking to buy a first home. The lack of inventory causes bidding wars on every available home, driving up the prices.

 

[1srelluc]

There's less than 50 homes for sale in my county and most all of them are $400K+.

That means a home buyer would have to make, on average, $105,864 a year for a average 30-year fixed rate mortgage on a $400k loan.

 

[Missourian]

Whoa! Talk about misreading the facts. The sales are low because of a LACK OF INVENTORY. People are holding on to their homes. Don't want to go through the usual pattern of selling your "smaller" house and buying something bigger, or selling your big house and moving to a condo. Interest rates are still too fucking high.

Lack of inventory. It's not a problem unless you are a real estate agent. The people being harmed are those seeking to buy a first home. The lack of inventory causes bidding wars on every available home, driving up the prices.

That's not what I'm seeing.

We are in the market for a home for my parents to move closer to me.

Prices are high and houses aren't moving.

We've been looking at one home for six months waiting for the price to drop.

No one has made a single offer on it.

 

[Missourian]

There's less than 50 homes for sale in my county and most all of them are $400K+.

That means a home buyer would have to make, on average, $105,864 a year for a average 30-year fixed rate mortgage on a $400k loan.

Everything is $400k.

The house we are looking at is $300k in Missouri.

That's like $600k Virginia prices.

 

[Missourian]

Whoa! Talk about misreading the facts. The sales are low because of a LACK OF INVENTORY.

This is from a few months ago... The beginning of the current downward spiral. It does not reflect your assertion...


Washington, DC CNN —

US home sales fell in April for the second month in a row and home prices had the biggest drop since 2012, according to a National Association of Realtors report released Thursday.

Sales had shown some life, rising in February after a full year of declines due to surging mortgage rates, but that momentum has since cooled.
In April, sales of existing homes — which include single-family homes, townhomes, condominiums and co-ops — dropped 3.4% from March.

https://www.cnn.com/2023/05/18/homes/existing-home-sales-april/index.html

Prices don't drop when inventory is tight. Prices drop when people aren't buying.

 

[theHawk]

There's less than 50 homes for sale in my county and most all of them are $400K+.

That means a home buyer would have to make, on average, $105,864 a year for an average 30-year fixed rate mortgage on a $400k loan.

And the median household income is only $72k. Individual somewhere around $50k.

House prices, high interest rates, sky high inflation and cost of living…no one can afford this.

 

[Missourian]

This is from November 6th...

The housing market is starting to crack—Sellers are cutting prices at record levels as 'You can no longer price based off of where sales were'

Nearly 7% of sellers posted price drops in October, Redfin says—well above the 3.6% average.

fortune.com

 

[DudleySmith]

As already pointed out, half the sales, or even more in some areas, are by corporations, not individual home buyers. Rents are outrageous here now, as flippers grab anything the big corps pass over.

 

[DudleySmith]

I forgot to add the FEd raised interest rates, so the corps and flippers can;t borrow lots of free money any more as well, probably the major reason for the drop. When you're not using your own money it's all free so buy everything that isn't nailed down, pay yourselves big salaries and bonuses, then bail and leave the losses to the suckers while you hide your personal stuff in your company's bankruptcy court filing.

 

[Mr Natural]

I forgot to add the FEd raised interest rates, so the corps and flippers can;t borrow lots of free money any more as well, probably the major reason for the drop. When you're not using your own money it's all free so buy everything that isn't nailed down, pay yourselves big salaries and bonuses, then bail and leave the losses to the suckers while you hide your personal stuff in your company's bankruptcy court filing.

That sounds like Chapter Two of The Art of the Deal.

 

[DudleySmith]

That sounds like Chapter Two of The Art of the Deal.

Well, still not nearly as good a deal as The Big Guy's 10% from a global extortion racket.