A report from the New York Post. “According to the Florida Department of Highway Safety, 10,824 Empire Staters swapped out their licenses in the first three months of this year. A Naples broker told The Post this week that this slowdown was inevitable, highlighting soaring mortgage rates, low housing inventory and spiking Florida home prices. ‘That was just unsustainable,’ she said. ‘I have clients who were set to move and just couldn’t make the numbers work anymore. This isn’t the same Florida as five years ago.’”
Bangor Daily News in Maine. “Agent Faith Morse called this spring’s real estate market more of a ‘Nantucket sleighride,’ lurching back and forth rather than the straight upshot it has been in recent years. Buyers had to offer at least $20,000 over asking price to even make an offer on a house last year, but that isn’t the case anymore because buyers are pinched by higher mortgage interest rates, she said. Instead of having 40 or 50 people at an open house, there might be only three. ‘The biggest thing is the unpredictability,’ said Morse, an agent in Auburn.”
“Blake Fecteau, co-owner of Hearth & Key Realty in Auburn, began seeing a market slowdown over the winter. He said it also feels like banks and home appraisers are being more conservative in their assessments to protect borrowers from getting underwater, or owing more than the home is worth. Morse agreed, saying that buyers are taking ‘a more thoughtful process’ now.”
The Oregonian. “Sales in the Portland metro area were sluggish for the first quarter of 2023, down by a third from a year ago. Even a drop in home prices hasn’t proved enough to lure buyers. The median sale price in March 2023 was $525,000, down more than 4% from $550,000 last year. ‘If we are pricing properties correctly, we see sales pending quickly,’ said Adam Shepard, a real estate broker with John L. Scott. ‘The ones we see sitting are those who still feel like it’s two years ago and they can shoot for the moon.’”
The Dallas Business Journal in Texas. “Dallas-Fort Worth homebuilders posted a solid performance in the first quarter of the year as the ‘new normal’ era of higher mortgage rates set in. Builders started construction on 9,691 homes in the quarter — up from 8,060 in the final quarter of last year but down 39% from the year-ago level of 16,014 in the first quarter of 2022, according to Dallas-based Residential Strategies Inc. Finished vacant inventory rose during the quarter to 8,595 homes. As of March 31, there were 85,205 vacant lots in the market representing a 24.1-month supply. A two-year supply is considered about right. Additionally, 80,762 lots remain under development.”
The Pueblo Chieftain in Colorado. “Affordable housing manufacturer indieDwell has temporarily shut down its Pueblo production facility due to cashflow issues, leaving 55 employees without work for the time being. Two employees of the company who asked the Chieftain to not use their names for this story confirmed that a large part of the issue that is one client in California has not paid on its contract. ‘Our whole workforce is disbanded and shattered. A lot of us are depressed, upset and mad,’ one worker said. ‘It’s a rollercoaster ride and I am trying to keep a positive attitude, but I am really kind of concerned for my future. I’ve got a mortgage, insurance costs, a car payment and now I don’t know if I can even afford my cable bill,’ one of the workers said, pointing out he, too, is looking for a new job.”
From Geek Wire. “Redfin laid off 201 employees, or about 4% of its workforce, on Tuesday as it continues to trim expenses in response to the housing downturn and ongoing economic uncertainty. This is the third time in less than a year the Seattle real estate company has conducted a workforce reduction. Redfin revenue fell 25% in the fourth quarter after mortgage rates and a sluggish market kept many buyers and sellers on the sidelines. The company also reported a net loss of $61.9 million, compared to $27 million in the year-ago quarter. A number of real estate tech companies have laid off employees in Washington state over the last year in response to the market downturn including Zillow, Flyhomes, Compass, and others.”
The Globe and Mail in Canada. “Sales in March in the GTA fell 36.5 per cent compared with March, 2022, according to TRREB. The average price dropped 14.6 per cent to $1,108,606 from $1,298,666. If the rules as proposed are implemented, federally regulated banks would be required to limit the share of highly leveraged borrowers they have in their mortgage portfolios. The OSFI is also considering tightening debt servicing metrics and toughening the mortgage stress test. Davelle Morrison, broker with Bosley Real Estate is also seeing an increase in the number of properties listed under ‘power of sale.’ In many cases, a private lender is listed as the seller, she says. ‘Some of those private lenders have taken over the house.’”
“Private lenders often provide cash for a shorter term than a conventional mortgage, she explains, and when the term is up, some lenders are deciding not to renew. Higher payments are also pushing some borrowers into defaulting on their loans. A recent search by Ms. Morrison found properties listed under power of sale appear across a range of prices, from around $700,000 to one listed for $3-million. Ms. Morrison is seeing an increasing number of such listings, but she advises buyers not to expect significant bargains. ‘They are not rock-bottom prices,’ she says.”
Scoop New Zealand. “Home values continue to drop across the Wellington region. From 1 January to 31 March, the average home value dropped across the region by 4.8% to $842,129 – a figure that is now 21.3% lower than at the same time last year. QV Wellington senior consultant David Cornford commented: “The larger than expected OCR increase last Wednesday will create greater uncertainty in the wider economy and have flow on effects for the property market over coming months. Buyers remain cautious and continue to take their time with their purchasing decisions.’”
“‘There has been an uptick in requests from lenders for forced sale valuations, indicating some homeowners are feeling mortgage pain as they come off low fixed interest rates or suffer other financial shocks,’ he added.”
“QV property consultant Derek Turnwald commented: ‘Open home attendance is dropping off now as we head into cooler weather with only an average of three attendees per open home. Auction attendance is very poor, and consequently auction outcomes are also poor. Properties with maintenance issues or unconsented work are still very difficult to sell unless they are discounted significantly. Many frustrated vendors who are unable to reach an acceptable price are pulling their properties off the market, which is frustrating sales agents,’ he added.”
“QV Nelson/Marlborough manager Craig Russell said he was starting to see evidence of properties purchased over the last 18 months selling at a loss. ‘The market continues to soften with many properties struggling to receive much attention at all from prospective buyers and sitting on the market for an extended period of time. Section sales are weak due to an oversupply of vacant land and a preference from purchasers to buy existing homes, in part due to them being far less exposed to building cost increases in this high inflation environment,’ he added.”