It’s Friday desk clearing time for this blogger. “More and more homes in Citrus Heights and the Sacramento region are seeing reductions in prices from original list price. Appraiser Ryan Lundquist says it’s a different market today than just a few months ago. ‘We’ve basically said goodbye to the most aggressive housing market ever, and we’re in a new market now,’ Lundquist says. What Citrus Heights is seeing is on par with the region, where 33% of all active listings in the Sacramento region have seen price reductions, according to Lundquist.”
“‘We’re in the middle of a housing-market correction. Sellers can still get an excellent price for their homes with the right strategy, but buyers are also able to be more discerning,’ said Los Angeles Redfin agent Heidi Ludwig. ‘Buyers aren’t going to overpay for a home that needs a ton of work anymore.’ ‘I can’t promise multiple offers anymore and they may not come on the first day, but we are getting strong offers when the home is priced right,’ said Austin Redfin agent Crystal Lopez.”
“New data about the housing market in Austin is hinting at a cooldown for the area. Housing inventory in the Austin area is going up as there were nearly 86% more listings in May 2022 compared to last May. The report also stated that Austin saw the greatest growth in the number of homes on the market that had their prices reduced to entice buyers.”
“‘The housing market is clearly going to be weakened by the increase in interest rates, and I think that the data that comes out next month and the month after and the month after that will clearly reflect it,’ said Phoenix-area real estate consultant Elliott Pollack. ‘Anecdotally, people aren’t paying $25,000-$50,000 over asking price to get into a house.’”
“I was dropping off a friend of mine in her neighborhood in Cary and noticed at least four homes with for-sale signs in the yard. I asked her if something was going on in her neighborhood, and she replied that she hadn’t noticed one for sale sign in her neighborhood in the past couple of years. Could it be that homeowners are finally ready to cash in their gains even if that means moving out of the area? Are we in the middle of a FOMO (fear of missing out) syndrome? Yes, we are.”
“An increasing number of sellers in certain regional markets are ‘finally feeling forced to slash their prices,’ according to Realtor.com. Austin, Texas, was the city with the most price reductions, with instances of price cuts up 14.7%. Las Vegas, Nevada, with price cuts up 12.3%. Phoenix, Arizona, with price cuts up 11.6%. ‘This softening seen in these red-hot markets might mean that sellers’ expectations have not yet caught up with the realities of this rapidly shifting buyer-seller dynamic,’ stated Realtor.com’s post.”
“Redfin is advising sellers to list their homes for sale sooner rather than later and to price their homes for less than they would have earlier this year. ‘During the pandemic-fueled housing frenzy, sellers could count on getting more money for their home than a neighbor who sold last month,’ said Daryl Fairweather, Redfin’s chief economist. ‘Those days are over. Now, you should expect to get a bit less than what your neighbor got a month ago — and in a month, you may get less than you would get now.’”
“The Greater Toronto Area housing market is becoming more balanced as May home sales dropped 39 per cent from a year earlier. Many sellers now garner fewer offers and bidding wars for their home, pushing some to accept a lower price than they may have seen months ago. ‘There is now a psychological aspect where potential buyers are waiting for a bottom in price. This will likely continue through the summer,’ Kevin Crigger, TRREB’s president, predicted.”
“May housing sales across Greater Vancouver fell for the second straight month and asking prices are being cut as month-to-month benchmark prices have dipped for the first time in at least two years. A three-bedroom house at 3831 Royalmore Avenue, Richmond was listed at $1,798,000 on May 26. On June 2 the asking price was reduced to $1,599,900. A Richmond condominium apartment at 4111 Bayview Street also saw a week-to-week priced reduction of $200,000 to $1,299,800.”
“Prices in New Westminster, Port Moody, Maple Ridge and Surrey were all at least 14 per cent lower as of May. ‘We’re now starting to see the full effect of rising interest rates on buyers and sellers’ habits,’ said Hao Li, a broker with House Sigma. ‘Double-digit dips in detached home averages in areas like Surrey and Maple Ridge highlight the pullback that’s happening in B.C.’s market.’ ‘There is panic in the market,’ said Kevin Skipworth, managing broker at Dexter Associates, ‘But there shouldn’t be.’”
“At the forefront of the industry’s recent dramas are the collapse of one building giant, Probuild, and the severe difficulties of Australia’s largest homebuilder, Metricon. Anthony Lococo, from Torquay, Victoria, will be shutting his building company Lococo Build later this year in what is the latest in a long line of tradesman feeling the pressure. ‘ I decided at Christmas that I just couldn’t face another year of it. I’m drained, and I’ve had enough. Reports from the trade industry said that it was going to be just as bad if not worse this year, and we just couldn’t do it,’ he said.”
“Some young workers succeed in buying a home in Ho Chi Minh City, but there are many others who cannot hold on to their dream for long due to unexpected events. Hoang Huy, a resident of Binh Thanh District, Ho Chi Minh City is another person who faced many obstacles while trying to secure an apartment here. His income was severely affected by the pandemic so Huy had no choice but to sell his dream apartment after he had already paid VND200 million ($8,621). Huy not only parted with the long-desired house but also suffered a loss of 20 percent.”
“‘I was luckier than others to be able to sell the apartment,’ said the young salaried worker. ‘Many people cannot and have to live with the debt and stress for a long time.’”
“Hopes for a return to tried-and-true strategies for making money in China have given way to the realization that a new era of slow growth has arrived. Longtime China watchers warn that sub-5% expansion or even lower may be the new norm. Chin Ping Chia, head of China A investments, business strategy and development at Invesco Ltd: ‘The way to think about China is from a mid-to-long term perspective. And when you do, you see that opportunities are abundant. Everything in China seems to be selling at a discount.’”