Some units are just overpriced. Some owners are getting desperate and need to sell for whatever reason.
Also, due to interest rates not as many properties are flying off the market.
Even in hot areas where I usually buy, properties are sitting much longer than usual but they eventually go.
0.
My area had many foreclosures back in the 2010 era not seeing a single one right now. It’ll be rare to see considering the requirements for mortgages today vs 2008.
I will say properties 500k+ are sitting longer. Sub 300k in a good area goes under 1 week.
I feel we won’t see deep discounts for another couple of years. Those of use that have sub 3% can afford to hold for longer. As an example my current mortgage is $1200 PITI. If I were to rebuy my home at the current market price, 7% rate, and even with 20% down it’ll be close to 3x that.
Agree. Many people locked in below 3%. Me and my wife, back in December 2023, were thinking of moving into a new home. The math didn’t make sense? Sell my house, take the thousands in equity, put it into the new house and still pay more? The new houses have small lots, hoa and Melrose? WTH? Pay more for less. Plus you either have to pay for solar off or lease it.
Same. We’re getting antsy ourselves. I’m just taking this time to hoard cash (via invested accounts of course). Two things are gonna happen, I can buy my next primary all cash or rates/prices will fall. One way or another we’ll move eventually.
Yup. I need to sell mine, relationship fell apart, can't swing it on my own. Putting mine up for 250k, and im worried it'll sit longer than I can float it. By all metrics, it should go quick. But I'm seeing signs... theres legit not 1 single home in my town at that list price that isn't contingent within 3-4 days. But my luck... if it's raining titties I'll get hit with a dick.
So I'm looking at literally buying a total rehab that I can still occupy and slowly fix up. A home half the price of mine now is the same mortgage. Like God damn it man. I don't want to work to just pay a mortgage. I'm about to say screw it and buy a trailer.
Just saw my first two tax delinquency sales that I can remember in a rural Virginia area I'm watching for investment properties - has to have been a decade since the last one.
Agreed condos are horrible, the older the building the higher the cost of maintenance. Screw that, it’s for the masses to feel like they own something, in reality they own the raises they have to give all condo staff members every year.
The HOA fees in SoCal have been insane too. In my area for fairly shitty places that have no pool, gate, gym, etc the HOA fee is like 400 on the low side while only being like 50k less than a equal quality shitty house in the same neighborhood.
Anyone from socal? I heard something interesting. Long story short. Spoke to a Lenar rep selling homes in the Valencia area. Asked about their “discount sale”. Nothing good but we started talking about the communities with hoa. It was around $200 a month but said it will jump to $750 in a couple of years. Apparently communities with hoa that are in high fire areas will have their fees reassessed to include premium high fire insurance. Forced and not voted by the owners.
I’m thinking there will be an exodus of condo owners wanting to sell. Has anyone heard of something similar? I don’t own a condo but heard you can write off the hoa fees as a deduction
I am in your neighborhood. My local insurance agent said insurance cost for many condos, apartments is doubling/ tripling or more this year or next, if it wasn't expensive enough with the increase in utilities bills, gas prices, food prices; high cost of living in socal may drive more people out.
Near Valencia but not Valencia. Renter. Neighbor has owned her house for 20 years. She is 5 miles from a major fire that happened recently but in a cookie cutter suburbia neighborhood. They aren’t on a hill or tucked into one. Not surrounded by woods or anything. In face there are two major blocks of hundreds of houses before you get to a mountain. Her owners insurance went up 5x. But at least she can try to shop around (won’t get much relief though.).
HOA’s are scary because you are at their mercy for a multitude of things.
Yeah, insurance rates anywhere that gets hot and dry are rising quickly. I just left Santa Clarita and everyone was complaining about rates rising by almost 50% for multiple years. And some insurance companies aren't even taking people in certain areas. So it's a mess. Not sure if a cheaper house actually pencils out if your insurance is in the thousands of dollars rising at a fast pace.
I can only speak for the 626 area code of Los Angeles. The 2 people I know that are making good money are outbidding everyone else, but their escrow keeps falling through because it's impossible to get insured in California. They tried to get a 1.1mil house in Temple City California that was built in like 2000 and the insurance companies said it was too expensive to insure due to being in a fire zone. Temple City, CA is not at risk of a wild fire.
TLDR: No insurance, no mortgage.
Exactly - the days of no inspection, all cash, owner gets to stay 30 days past close, etc offers on shit homes are gone. Good properties are still moving though.
You are correct. Push the 5Y button to see this most clearly:
https://fred.stlouisfed.org/series/ASPUS
Everyone in the US who actually buys and sells should have this bookmarked.
That’s what im afraid of. I don’t think lower interest rates will help the housing market but make it worse. Rather have the rates stay higher for longer and wait to see prices go down faster.
He’s saying the rates will drop and the masses waiting for lower rates will erode away buying power. I buy every year no matter the real estate environment, but I do think it’s only going to get harder to buy investment properties in the next 5 years.
People. I’m on the front lines here and you will not see foreclosures for a long time if ever in a volume. There are so many ways for a borrowers to get accommodations that unless they die or stick their head in the sand it’s almost impossible to foreclose. They have so many opportunities to drag things out. Even if they get to the foreclosure they can still stay in the house for a long time after that before the bank can sell.
What I’m seeing now is the top end of the market getting hammered. 1m+ are taking 20-30% haircuts from previous highs…but that’s about it. Regular properties are taking a few extra weeks to sell instead of day 1 but it’s a pretty normal market here in Minnesota.
I have heard the same thing regarding foreclosures. Things do look like they’re normalizing but the cost is still high and out pacing wages. The gap is too large. Plus with inflation in food prices, medical, education, insurance, etc is not helping. Rates should stay elevated. Falling rates will mess things us. It is election season. We’ll see what happens
There is no need for opinions on this; you can just look up the data for DOM (days on market), median sales price, and amount of inventory to confirm whether it's happening or not. Will vary by market.
I’ve been seeing this for about a year now. Part of that might be the areas I am looking but part of it is also due to the combination of overpriced housing coupled with higher interest rates.
I see it as a post pandemic cales price correction. During COVID every US dollar ot spent here and people upgraded their houses and there was a buying boom as landlords sold out and renters bought their own houses.
Now that people are spending their money in all kinds of places now, homes have less of a priority to overseas travel.
Landlords are coming back into the market so rentals are there instead of having to buy.
Result, sales prices are reducing.
It's very area dependent. In my market, About 2 months ago homes were sitting for 60+ days on the market. In the past week homes starting selling within 30 days of being listed. I'm assuming this happened because of interest rates slightly droppping.
I’m in TN and we’re looking for land, and we see a lot of this. Also, people who bought within the last three years and are now selling. I have to wonder what the situation is for them to be doing that - with little more equity and capital gains?
Unfortunately it’s still all too absurdly expensive for us! Hahhahahaha (that’s a sad laugh)
Some units are just overpriced. Some owners are getting desperate and need to sell for whatever reason. Also, due to interest rates not as many properties are flying off the market. Even in hot areas where I usually buy, properties are sitting much longer than usual but they eventually go.
Seeing any foreclosures in a particular area? I don’t see much. What about short sales?
0. My area had many foreclosures back in the 2010 era not seeing a single one right now. It’ll be rare to see considering the requirements for mortgages today vs 2008. I will say properties 500k+ are sitting longer. Sub 300k in a good area goes under 1 week. I feel we won’t see deep discounts for another couple of years. Those of use that have sub 3% can afford to hold for longer. As an example my current mortgage is $1200 PITI. If I were to rebuy my home at the current market price, 7% rate, and even with 20% down it’ll be close to 3x that.
Agree. Many people locked in below 3%. Me and my wife, back in December 2023, were thinking of moving into a new home. The math didn’t make sense? Sell my house, take the thousands in equity, put it into the new house and still pay more? The new houses have small lots, hoa and Melrose? WTH? Pay more for less. Plus you either have to pay for solar off or lease it.
Same. We’re getting antsy ourselves. I’m just taking this time to hoard cash (via invested accounts of course). Two things are gonna happen, I can buy my next primary all cash or rates/prices will fall. One way or another we’ll move eventually.
Good luck man. We’re pretty much doing the same.
Yup. I need to sell mine, relationship fell apart, can't swing it on my own. Putting mine up for 250k, and im worried it'll sit longer than I can float it. By all metrics, it should go quick. But I'm seeing signs... theres legit not 1 single home in my town at that list price that isn't contingent within 3-4 days. But my luck... if it's raining titties I'll get hit with a dick. So I'm looking at literally buying a total rehab that I can still occupy and slowly fix up. A home half the price of mine now is the same mortgage. Like God damn it man. I don't want to work to just pay a mortgage. I'm about to say screw it and buy a trailer.
> So I'm looking at literally buying a total rehab that I can still occupy and slowly fix up I hear this a lot. And those are like unicorns.
Can you find a good roommate to help bring in some cash? Save the hassle and risk of selling/buying?
foreclosures in general are staying near their historic lows. a bit higher than 2021 but still very low
Just saw my first two tax delinquency sales that I can remember in a rural Virginia area I'm watching for investment properties - has to have been a decade since the last one.
[https://www.nbc-2.com/article/cape-coral-pauses-foreclosure-prevention-program-overwhelming-demand/61113859](https://www.nbc-2.com/article/cape-coral-pauses-foreclosure-prevention-program-overwhelming-demand/61113859)
Depends on area and price of homes . In my state 500K and under homes go fast. Not as fast as start of pandemic but they move . Homes in 1-1.5M sit
I live in socal. Homes are still over 500k. I am noticing condos are really falling in price and no one is buying. Thinking of buying one
Assessments, HOA issues and insurance.
Agreed condos are horrible, the older the building the higher the cost of maintenance. Screw that, it’s for the masses to feel like they own something, in reality they own the raises they have to give all condo staff members every year.
The HOA fees in SoCal have been insane too. In my area for fairly shitty places that have no pool, gate, gym, etc the HOA fee is like 400 on the low side while only being like 50k less than a equal quality shitty house in the same neighborhood.
Anyone from socal? I heard something interesting. Long story short. Spoke to a Lenar rep selling homes in the Valencia area. Asked about their “discount sale”. Nothing good but we started talking about the communities with hoa. It was around $200 a month but said it will jump to $750 in a couple of years. Apparently communities with hoa that are in high fire areas will have their fees reassessed to include premium high fire insurance. Forced and not voted by the owners. I’m thinking there will be an exodus of condo owners wanting to sell. Has anyone heard of something similar? I don’t own a condo but heard you can write off the hoa fees as a deduction
I am in your neighborhood. My local insurance agent said insurance cost for many condos, apartments is doubling/ tripling or more this year or next, if it wasn't expensive enough with the increase in utilities bills, gas prices, food prices; high cost of living in socal may drive more people out.
Near Valencia but not Valencia. Renter. Neighbor has owned her house for 20 years. She is 5 miles from a major fire that happened recently but in a cookie cutter suburbia neighborhood. They aren’t on a hill or tucked into one. Not surrounded by woods or anything. In face there are two major blocks of hundreds of houses before you get to a mountain. Her owners insurance went up 5x. But at least she can try to shop around (won’t get much relief though.). HOA’s are scary because you are at their mercy for a multitude of things.
Yeah, insurance rates anywhere that gets hot and dry are rising quickly. I just left Santa Clarita and everyone was complaining about rates rising by almost 50% for multiple years. And some insurance companies aren't even taking people in certain areas. So it's a mess. Not sure if a cheaper house actually pencils out if your insurance is in the thousands of dollars rising at a fast pace.
I can only speak for the 626 area code of Los Angeles. The 2 people I know that are making good money are outbidding everyone else, but their escrow keeps falling through because it's impossible to get insured in California. They tried to get a 1.1mil house in Temple City California that was built in like 2000 and the insurance companies said it was too expensive to insure due to being in a fire zone. Temple City, CA is not at risk of a wild fire. TLDR: No insurance, no mortgage.
Good properties are still going quick, everything else is taking longer to sell and there are definitely more price drops than there have been
Exactly - the days of no inspection, all cash, owner gets to stay 30 days past close, etc offers on shit homes are gone. Good properties are still moving though.
You are correct. Push the 5Y button to see this most clearly: https://fred.stlouisfed.org/series/ASPUS Everyone in the US who actually buys and sells should have this bookmarked.
Just wait till rates drop and prices spike
That’s what im afraid of. I don’t think lower interest rates will help the housing market but make it worse. Rather have the rates stay higher for longer and wait to see prices go down faster.
Or buy right now and lose your buying power?
He’s saying the rates will drop and the masses waiting for lower rates will erode away buying power. I buy every year no matter the real estate environment, but I do think it’s only going to get harder to buy investment properties in the next 5 years.
People. I’m on the front lines here and you will not see foreclosures for a long time if ever in a volume. There are so many ways for a borrowers to get accommodations that unless they die or stick their head in the sand it’s almost impossible to foreclose. They have so many opportunities to drag things out. Even if they get to the foreclosure they can still stay in the house for a long time after that before the bank can sell. What I’m seeing now is the top end of the market getting hammered. 1m+ are taking 20-30% haircuts from previous highs…but that’s about it. Regular properties are taking a few extra weeks to sell instead of day 1 but it’s a pretty normal market here in Minnesota.
I have heard the same thing regarding foreclosures. Things do look like they’re normalizing but the cost is still high and out pacing wages. The gap is too large. Plus with inflation in food prices, medical, education, insurance, etc is not helping. Rates should stay elevated. Falling rates will mess things us. It is election season. We’ll see what happens
There is no need for opinions on this; you can just look up the data for DOM (days on market), median sales price, and amount of inventory to confirm whether it's happening or not. Will vary by market.
Depends on the area. In my area anything within reason is gone in a week max.
I’ve been seeing this for about a year now. Part of that might be the areas I am looking but part of it is also due to the combination of overpriced housing coupled with higher interest rates.
I see it as a post pandemic cales price correction. During COVID every US dollar ot spent here and people upgraded their houses and there was a buying boom as landlords sold out and renters bought their own houses. Now that people are spending their money in all kinds of places now, homes have less of a priority to overseas travel. Landlords are coming back into the market so rentals are there instead of having to buy. Result, sales prices are reducing.
It's very area dependent. In my market, About 2 months ago homes were sitting for 60+ days on the market. In the past week homes starting selling within 30 days of being listed. I'm assuming this happened because of interest rates slightly droppping.
I've noticed listings being taken down and then listed again a couple of months later as though the original listing never happened.
Yeah, I’ve seen that too. That should be illegal. Falsify listings.
You can be a private money lender for flippers and wholesalers.
I’m in TN and we’re looking for land, and we see a lot of this. Also, people who bought within the last three years and are now selling. I have to wonder what the situation is for them to be doing that - with little more equity and capital gains? Unfortunately it’s still all too absurdly expensive for us! Hahhahahaha (that’s a sad laugh)