House Prices Are Now Plummeting In These 8 Major Cities
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2018 Nov 11, 9:52am 1,653 views 10 comments
by Patrick ➕follow (55) 💰tip ignore
https://www.zerohedge.com/news/2018-11-07/home-prices-are-now-plummeting-these-8-major-cities
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1
lostand confused
2018 Nov 11, 10:12am
lostand confused
2018 Nov 11, 10:12am
Wow I have been away from CA for a while-the average house price in Santa Rosa is 550k !!!!!
2
Patrick
2018 Nov 11, 10:15am
Patrick
2018 Nov 11, 10:15am
About 3,000 houses burned down in Santa Rosa last year in another epic fire.
You'd think the lack of housing would drive prices up, not down, but then, who wants to live in an area that will be subject to repeated disasters?
You'd think the lack of housing would drive prices up, not down, but then, who wants to live in an area that will be subject to repeated disasters?
4
CBOEtrader
2018 Nov 11, 1:07pm
CBOEtrader
2018 Nov 11, 1:07pm
ITS A GREAT TIME TO BUY :/
Well, we will finally see what happens into a rising rate market. We know that the cost of rent MUST rise as compared to purchase price in this environment. Therefore if rents dont rise, prices must fall.
I'd use Patrick's craigslist rental price data scraper to hopefully identify when rents start to get weak. Thats your signal to buy puts in banks
Well, we will finally see what happens into a rising rate market. We know that the cost of rent MUST rise as compared to purchase price in this environment. Therefore if rents dont rise, prices must fall.
I'd use Patrick's craigslist rental price data scraper to hopefully identify when rents start to get weak. Thats your signal to buy puts in banks
6
Ceffer
2018 Nov 11, 1:15pm
Ceffer
2018 Nov 11, 1:15pm
Shit splattered, empty dempsey dumpsters in good locations near faucets are still going in SF for $150,000. Just remember to get your sleeping bag out before collection day.
7
Evan F.
2018 Nov 11, 1:21pm
My neighborhood (LA area) has been relatively flat y.o.y., with maybe a very modest increase in prices.. but sales volume is definitely down. Just not as many buyers.
Also, I think rents are indeed turning a corner-downward. My rental unit in Pasadena was vacated a month ago and I listed it for $3k/month, which was right in the middle of the neighborhood comps. Two weeks later I took $2750 because I didn't feel like waiting; time is money in that game and missing a months rent (or more) just to get a couple hundred bucks more per month is cutting off your nose to spite your face.
Needless to say I was glad to get the contract inked because I believe the comps are continuing to drop, albeit slowly.
Also, I think rents are indeed turning a corner-downward. My rental unit in Pasadena was vacated a month ago and I listed it for $3k/month, which was right in the middle of the neighborhood comps. Two weeks later I took $2750 because I didn't feel like waiting; time is money in that game and missing a months rent (or more) just to get a couple hundred bucks more per month is cutting off your nose to spite your face.
Needless to say I was glad to get the contract inked because I believe the comps are continuing to drop, albeit slowly.
8
Hircus
2018 Nov 11, 1:40pm
Hircus
2018 Nov 11, 1:40pm
Patrick says
The october 2017 fire drove rents up:
And home prices continued their trend upwards, although I'm surprised there was no spike:
About 3,000 houses burned down in Santa Rosa last year in another epic fire.
You'd think the lack of housing would drive prices up, not down
The october 2017 fire drove rents up:
And home prices continued their trend upwards, although I'm surprised there was no spike:
9
rdm
2018 Nov 11, 2:04pm
Patrick says
It did drive prices up, I would say an immediate 10 to 15%. There has been the resetting of prices beginning in early June back to pre-fire levels, there is more inventory. Most fixer type homes need price reductions to sell as getting a contractor is very difficult. A house that is in good shape in a good location will still get overbids. The market in general is softer but far from collapsing.
In Santa Rosa and areas near by that burned there is some rebuilding, even a few completed houses, my opinion is it will take 10 years. Permitting has been expedited in the burned areas. There are many lots on the market, people not wishing to rebuild, at well below pre-fire prices, they are not selling well.
You'd think the lack of housing would drive prices up
It did drive prices up, I would say an immediate 10 to 15%. There has been the resetting of prices beginning in early June back to pre-fire levels, there is more inventory. Most fixer type homes need price reductions to sell as getting a contractor is very difficult. A house that is in good shape in a good location will still get overbids. The market in general is softer but far from collapsing.
In Santa Rosa and areas near by that burned there is some rebuilding, even a few completed houses, my opinion is it will take 10 years. Permitting has been expedited in the burned areas. There are many lots on the market, people not wishing to rebuild, at well below pre-fire prices, they are not selling well.
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