General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHousing market looks headed for its worst slowdown in years
They were fed up with Seattles home bidding wars. They were only in their late 20s but had already lost two battles and were ready to renew with their landlord. Then, in May, their agent called.
Suddenly, Redfins Shoshana Godwin told the couple, sellers were getting jumpy, even here in the hottest of markets. Homes that should have vanished in days were sitting on the market for weeks. There was a three-bedroom fixer-upper just north of the city going for $550,000, down from more than $600,000. They made the leap in early June and had closed by the end of the month, for list price.
The U.S. housing market -- particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas -- appears to be headed for the broadest slowdown in years. Buyers are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and theres only so far they can stretch.
This could be the very beginning of a turning point, Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles, said in an interview. He stressed that he isnt ready to make that call yet.
he Data
A slew of figures released over the past three days gives ample evidence of at least a cooling.
Existing-home sales dropped in June for a third straight month. Purchases of new homes are at their slowest pace in eight months. Inventory, which plunged for years, has begun to grow again as buyers move to the sidelines, sapping the fuel for surging home values. Prices for existing homes climbed 6.4 percent in May, the smallest year-over-year gain since early 2017, and have gained the least over three months since 2012, according to the Federal Housing Finance Agency.
https://www.msn.com/en-us/money/realestate/housing-market-looks-headed-for-its-worst-slowdown-in-years/ar-BBL4JAh?li=BBnbfcN
So much winning!!!!
uponit7771
(90,329 posts)hatrack
(59,583 posts)If our homely little neighborhood is suddenly hot (4 doors down sold in three hours for about $85k more than we paid 12 years ago, and these are 1920s vintage 1,100 - 1,300 sf homes), things are definitely getting out of hand.
Can't even imagine Seattle or Austin or Boston or SF. Sheesh.
Sucha NastyWoman
(2,743 posts)Bought a home in 2012 at the peak of the drought just west of Austin. Should have been water view of Lake Travis but shortly after we closed, the water dried up so much we could no longer see the lake. Now we just sold our house six years later for almost 50% more than we paid for it. And it sold in a few days. Unfortunately Though, we had to move from Austin to Houston