patrick.net

What does this have to do with housing prices?

Congruence.

The car market with tons of unsold inventory -- some even 2023 models -- need to crash drop prices low enough to clear out is also the same problem many housing markets across the nation need to do or will soon.

Dunno why these sectors can't figure out the obvious. Because YES the same actions are needed to clear out non-selling inventory on a market whether they be clearing the shelves off at WalMart or a supermarket or a carpet emporiom even a flee market stall: Either drop the damn prices enough via an EVERYTHING HAS TO GO liquidation sale OR product destruction.

If the car manufacturers designed and built cars that could be far more easily recycled, they could then do the latter even if housing can't. But noo...they don't. So crash selling it is.

But it is amazing how they fight against the waves like King Canute instead. So much for these idiots with business degrees, unlike homeowners.



https://wolfstreet.com/2024/12/04/cut-the-price-and-they-will-come-new-vehicle-sales-jump-in-november-amid-big-discounts-and-incentives-as-inventory-balloons/

Dealers were hoping the Covid times was "the new normal". I witnessed my co-worker buying a KIA for his daughter and it had $3K markup on a fucking $25K econobox. Any attempt to negotiate it down was met with "go shop around if you don't like our prices". He tried and every other dealer who even had a comparable car on the lot was marking up $5K+. He went back with his tail between his legs and paid the ask. The dealers and manufacturers held out as long as they could (hence these unsold 2023 cars on the lots), but now the race to the bottom has finally began.

I bet the holders of overpriced RE are watching stock market and wishing their money weren't tied up in the shacks...

Now homeloaners with 50 year old houses need to follow the car dealerships lead. We need 30% more, but 10% will do for the new year.

ID is next. Maybe MT. AZ at this point is semi bullet proof even though it keeps going up. CO is in the cross hairs. Nashville area is going to get the shit beat out of it in my opinion.

Vegas/NV I think does okay this time. CA I have no clue with all the Asians and illegals. San Diego seems fine. Everyone is moving out of LA though. I don't get any appeal in the Bay Area outside of a job. The weather is not all that great there. No snow, but foggy and a bad vibe.

Midwest, my area I think has a 10% floor IF it goes down at all. Chicago still has some room to lose and Milwaukee. Indy I'm not super familiar with or Detroit as they're trash cities.

Any correction is going to be minimal. Most people are locked into low interest rates. No point in moving unless you bought small and started a family. Hence why we're building. The new payment is trivial for us although it will be triple. Fucking permits need to come in tomorrow though. I've been a complete ass hole. Turnaround on this stuff is 48 business hours in my world. We're going on 6 weeks now. I want to start punching people and it might start tonight if I can make the village board meeting if I can bail early on mine.

WookieMan says

Most people are locked into low interest rates

Job Relocation, Divorce, Job Loss, Health & Death, and Retirement...

And the first four are not up to the homeloaner in most cases.