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Time to sell real estate?

By joshuatrio follow joshuatrio   2019 Jan 7, 10:25am 1,307 views   19 comments   watch   nsfw   quote   share    


Anyone think it's a good time to sell real estate? Seeing the coastal areas with multiple price reductions, and I wouldn't be surprised if those reductions started to make their way inland.

Thinking about my home which I bought 2 years ago. It's paid off and worth about 75k more than I paid for it. Question is, does it even make sense?

I like where I live in Atlanta, but parts of Florida or even central America are just as (if not more) appealing.


1   zzyzzx   ignore (1)   2019 Jan 7, 10:28am     ↓ dislike (0)   quote   flag        

I have no idea, but suspect that it really depends on what you think might happen with interest rates and overall affordability.
2   APOCALYPSEFUCKisShostikovitch   ignore (43)   2019 Jan 7, 10:28am     ↓ dislike (0)   quote   flag        

I know exactly what time it is:

It's time OPEN! FIRE!
3   mell   ignore (3)   2019 Jan 7, 10:30am     ↓ dislike (0)   quote   flag        

APOCALYPSEFUCKisShostikovitch says
I know exactly what time it is:

It's time OPEN! FIRE!


Nobody can say he isn't a straight shooter. Long yams.
4   NuttBoxer   ignore (2)   2019 Jan 7, 10:33am     ↓ dislike (0)   quote   flag        

I think the top was last summer. If it's an investment, sell. If it's a home, stay.
5   Tenpoundbass   ignore (15)   2019 Jan 7, 10:51am     ↓ dislike (0)   quote   flag        

What Zillow says about my house

a single family home that contains 1,910 sq ft and was built in 1951. It contains 2 bedrooms. This home last sold for $160,000 in September 2010.

The Zestimate for this house is $315,651, which has increased by $3,847 in the last 30 days. The Rent Zestimate for this home is $2,100/mo.
6   MrMagic   ignore (11)   2019 Jan 7, 10:56am     ↓ dislike (0)   quote   flag        

NuttBoxer says
If it's an investment, sell. If it's a home, stay.


This is the correct answer, but in the majority of cases (if you're not a slumlord), a house is shelter first.

Everyone needs shelter. If the cost structure makes sense and you can afford it, keep it. If the monthly living expenses are similar to renting in the area, keep it.

If funds are tight, you need to do what you need to do.

As a reminder, a home IS NOT an investment. It's a degrading shelter and a roof over your head.
7   MrMagic   ignore (11)   2019 Jan 7, 12:33pm     ↓ dislike (0)   quote   flag        

'Worst Is Yet To Come' Says Housing Bear Who Nailed 2008 Crash, 2018 Slowdown.

James Stack, who predicted the 2008 real estate crash and nailed last year’s housing slowdown with uncanny timing, is back with some bad news for 2019.

“Housing could be heading for its worst year since the last housing crash," Stack, 67, said in a phone interview. “Expect home sales to continue on a downward trend in the next 12-plus months. And there’s a significant downside risk to housing prices if a recession takes hold.”

Last January, Stack was practically alone when he warned rising mortgage rates would expose housing’s affordability problem and “the risk that today’s highly inflated housing market will again end badly.” The day after Bloomberg published his comments on Jan. 22, homebuilder shares began a 10-day slide, and ended the year down by more than a third.

But Stack says the damage is done.

"Even if mortgage rates level off or ease slightly in 2019, we are unlikely to see the psychology turnaround," Stack said. "Homebuyers have woken up to the fact that affordability is a major issue. Can they afford the home?"

https://www.bloomberg.com/news/articles/2019-01-07/housing-bear-who-called-2018-slowdown-sees-worst-yet-to-come

8   APOCALYPSEFUCKisShostikovitch   ignore (43)   2019 Jan 7, 12:47pm     ↓ dislike (0)   quote   flag        

If you're not shooting, you're surrendering.

Don't wait to see the whites of their eyes! SHOOT! AT! ANY! MOVEMENT!

LONG: YAM!s and BELT!-FED! ammo!
9   NuttBoxer   ignore (2)   2019 Jan 7, 1:19pm     ↓ dislike (0)   quote   flag        

MrMagic says
As a reminder, a home IS NOT an investment. It's a degrading shelter and a roof over your head.


Absolutely correct, the land is the investment, and with taxes and imminent domain, not the most secure secure one. From the perspective of buy or sell couching it in those terms makes the most sense to me.
10   Iranian_Oil_Burse   ignore (6)   2019 Jan 7, 1:22pm     ↓ dislike (0)   quote   flag        

joshuatrio says
Anyone think it's a good time to sell real estate? Seeing the coastal areas with multiple price reductions, and I wouldn't be surprised if those reductions started to make their way inland.

Thinking about my home which I bought 2 years ago. It's paid off and worth about 75k more than I paid for it.




This is a nice house you've got there. Why not just live in it instead of chasing measly $75K around?
11   MrMagic   ignore (11)   2019 Jan 7, 3:32pm     ↓ dislike (0)   quote   flag        

DASKAA says
This is a nice house you've got there. Why not just live in it instead of chasing measly $75K around?


Stop making sense.

That's not allowed around here.
12   Patrick   ignore (0)   2019 Jan 7, 4:13pm     ↓ dislike (0)   quote   flag        

My opinion, as ever, is that it is usually too hard to predict macro trends, so the best thing to do is just look at the rent/buy ratio for any given house. The NY Times calculator is still pretty good, even though they have lost their editorial integrity on the news pages.

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

If the current rent for it could cover all expenses and the opportunity cost, then hold it and rent it out at a profit.

If you couldn't profitably rent it out, sell it.

Owning is simply renting to yourself.
13   APOCALYPSEFUCKisShostikovitch   ignore (43)   2019 Jan 7, 4:18pm     ↓ dislike (0)   quote   flag        

Head to high ground, preferably near a water supply.

Long: YAMS!
14   anonymous   ignore (null)   2019 Apr 6, 12:50am     ↓ dislike (0)   quote   flag        

Florida cities see greatest percentage of price cuts as housing market cools - Nationwide, 75% of listings predicted to sell below asking in Q2

The housing market is tipping in favor of buyers, with a significant percentage of homes on the market selling for less than their original listing price.

This is according to real estate startup Knock, which reveals which markets have the highest percentage of homes that will sell below asking in its second quarter Deals Forecast.

Homebuyers are increasingly likely to score a deal, Knock says, forecasting that 75% of current listings will sell below their original listing price in Q2, and pinpointing the average number of days on the market as 25 and the average price reduction at 3.3% below asking.

The best deals, it reveals, can be found in the South.

Among the top 10 cities that had the greatest percentage of houses sell for less than asking, seven were located in the South.

Florida took the lead, with four cities in the sunshine state making the list, including Miami, which nabbed the No. 1 spot for both the size and the frequency of price reductions.

In the first quarter of 2019, 88% of homes in Miami sold below their original listing price, and the average number of days on the market before a sale was made was 82, Knock said. Further, 79% of homes in Miami sold for at least 2% below asking.



https://www.housingwire.com/articles/48736-florida-cities-see-greatest-percentage-of-price-cuts-as-housing-market-cools
15   BayArea   ignore (1)   2019 Apr 6, 5:54am     ↓ dislike (0)   quote   flag        

It depends on whether the property is an investment vs your home, what the alternatives are if you were to sell, and what the rent/buy ratios are in your area.
16   HonkpilledMaster   ignore (5)   2019 Apr 6, 11:50am     ↓ dislike (0)   quote   flag        

joshuatrio says
I like where I live in Atlanta, but parts of Florida or even central America are just as (if not more) appealing.


Consider SOUTH America, especially Cono Sur. Far less crime, much more compatible with US Living. Food is bland, though.
17   anonymous   ignore (null)   2019 Apr 12, 7:37am     ↓ dislike (0)   quote   flag        

Zillow: This is the nation's typical home seller - 76% of the nation's home sellers are Caucasian

As spring home buying season heats up, thousands of Americans are projected to list their homes for sale.

And although homeowners of various backgrounds will take to the market, data suggests that a specific demographic of Americans are more likely to sell their homes.

According to a recent report from Zillow, America’s average home seller is a 48-year-old Caucasian, college-educated couple with a middle-class income and a pet.

Interestingly, Zillow’s analysis indicates that the country’s home sellers are a lot less diverse than homebuyers.

In fact, only 24% of home sellers are people of color, with Hispanics making up the majority at 10%. African Americans and Asians represent 7% and 5% of the population, respectively.

This divide could partially be attributed to disparities in wages, as Zillow points out that the median household income for sellers is $72,500.

“One-third of sellers earn less than $50,000, 19% of sellers earn between $50,000 and $75,000, 15% have household income between $75,000 and $100,000, and another 34% earn more than $100,000,” Zillow writes.

According to data from the U.S. Census Bureau, as of 2017, Caucasian and white households made more than $60,000 annually. However, the median income for Hispanic and African American households sat around 50,000 and $40,000, respectively.

Notably, the National Association of Hispanic Real Estate Professionals recently released a report stating that Hispanics represented 62.7% of the increase in U.S. homeownership. So, while they fall behind in sales, they are surely gaining in home purchases.

The image below, courtesy of Zillow, highlights home selling demographics:



https://www.housingwire.com/articles/48767-zillow-this-is-the-nations-typical-home-seller
18   anonymous   ignore (null)   2019 Apr 12, 7:43am     ↓ dislike (0)   quote   flag        

Who is buying ? In 2018, the Hispanic homeownership rate climbed to 47.1%

Despite the political and social turmoil facing the nation’s Hispanic population, data suggests the demographic remains resilient in their pursuit in achieving the American dream of homeownership.

In fact, according to a recent report from the National Association of Hispanic Real Estate Professionals, the demographic now accounts for more than 60% of the growth of nation’s homeownership rate within the last 10 years.

“Over the past decade, Hispanics have accounted for 62.7% of net U.S. homeownership gains, growing from 6,303,000 homeowners to 7,877,000, a total increase of 1,574,000 Hispanic homeowners,” NAHREP writes. “This upward trajectory for Hispanic homeownership is consistent with projections made by the Urban Institute that Hispanics will account for more than half of all new homeowners over the next several years and for 56% of all new homeowners by 2030.”

This may be true, as the organization’s data indicates Hispanics were responsible for over 30% of the overall U.S. household formations in 2018 alone. This means Hispanics added 362,000 homeowners to the U.S. housing market, raising the Hispanic homeownership rate to 47.1%.

Not only is this percentage an increase from last year’s 46.2%, but it also marks the largest net gain for Hispanics since 2005, according to the report.

“In 2018, Hispanics formed 485,000 new households, accounting for 32.4% of total U.S. household formations,” NAHREP writes. “According to Harvard’s Joint Center for Housing Studies, Hispanics are projected to increase by 4.6 million households between 2015 and 2025. Hispanic household growth continues to outpace that of overall U.S. household growth and is anticipated to do so for the foreseeable future.”

Fannie Mae’s 2018 annual housing survey supports these claims, as the analysis highlights a growing demand for homeownership among Hispanic Americans.

The 2018 survey, which gauges American homeownership characteristics, revealed 88% of Hispanics believe owning a home is the best housing investment plan. Furthermore, Hispanic survey respondents consistently indicate aspirational goals toward homeownership.

https://www.housingwire.com/articles/48770-hispanics-now-lead-the-charge-in-us-household-growth
19   B.A.C.A.H.   ignore (0)   2019 Apr 12, 7:44am     ↓ dislike (0)   quote   flag        

joshuatrio says
Question is, does it even make sense?


A stable situation with the neighborhood, their friends, the school, etc. for kids is a consideration.

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