Are sellers cutting prices in your area?

[Anonymous]

Anonymous wrote:We are seeing price cuts in Bethesda and North Bethesda area.

That's a because Bethesda actually sucks. Not sorry!

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are seeing price cuts in Bethesda and North Bethesda area.

That's a because Bethesda actually sucks. Not sorry!

The entire DMV sucks. Not sorry!

[Anonymous]

Another No from me dawg. Houses are getting asking prices and a lot of cash sales.

[Anonymous]

Anonymous wrote:

Yes, but houses are being listed way outsized to their value (e.g we looked at a house with substantial water damage listed at 555 - we asked the real estate agent if they’d be willing to negotiate- crickets - just saw they brought the price down to 545). There is a quiet correction going on. I don’t think there will be a crash - way too many people are invested - but I think housing prices will be flat or a little decreased for the next five years at least. You can’t have constant growth, despite the commonly accepted economic theories.

This. We lived through the 90's here. It took about 10 years before prices started going up again after the big late 80's, early 90's run up in prices. Unfortunately we bought at the peak in 1989 and sold before the next run up. Sold in 1999 for less than we paid in 1989. In Fairfax County. Of course things went crazy again in the early 2000's until 2008. We are now going into a downward/flat cycle. It could last 10 years just like it did in the 90's. Buy for your home needs, not for any idea that your home is an investment that appreciates. We probably won't keep up with inflation on it.

In the suburbs prices were flat from 2013-2018. The pandemic is when prices started going up again.

[Anonymous]

Prices in most of the suburbs is barely higher than 2005-2007 right now.

[Anonymous]

Prices in most of the suburbs is barely higher than 2005-2007 right now.

That may be true. Prices got ridiculously high before the Great Recession of 2008.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Are people seeing significantly lower closing prices?

In the markets I'm following, there are some slight price cuts from list prices and lots of inventory, but the closing prices are still high.

For example, a house sold in 2021 for $800K, lists at $1.9M, reduces the price to $1.75M, and the house just sits. Lots of similar listings. I'm seeing lots of inventory sitting longer, but not much reduction in the prices for the houses that close.

This sounds like someone who bought, did major renovations, and now flipping it. ?? They can probably afford to come down more.

PP here. That would make sense, but I saw the pics from the 2021 sale and it doesn't look like they did any updates.

I'm seeing some price reductions but the sellers are already starting from such a high number. Even if they cut the price more and sell for $1.6M, then that's double what they paid 4 years ago. This is what I'm seeing in the RE markets that I'm following - the closing prices are still 75% or more than the value of the home just 4-5 years ago.

I guess my point is how much of a value is a $100-300K list price cut if the closing price is still 75-100% more than the sellers paid 4 or 5 years ago?

I have been following FL, but see the exact same thing. Sometimes yes they will at least advertise stuff they remodeled...but in one case a home purchased for like $800k in 2022 brand new, they are now trying to sell for like $1.3MM (this is a particular house in Tampa that they have now dropped to $1.1MM).

I don't really get it. It makes you look like an unserious seller...yet inventory has absolutely exploded but people are trying to somehow realize 50% gains in 3 years?

You are seeing people selling their homes in new home developments for less than what they paid in 2022/23. This the huge risk of buying in a cookie cutter development where the builders can still make a profit selling a brand new home for less than what they sold them 2 or 3 years ago. At least the sellers know they need to eat the loss because the completely understand that a buyer will take a new home over a lived-in home.

PP here, yeah this place is in a FL beach town on the Atlantic coast. I just can't be the idiot who pays $1.6M+ for a place that the seller bought in 2021 for $800K. But all the houses in this area are still priced at around double or more what they were valued at 4-5 years ago. Plus property taxes are sky high.

Same with some other markets I'm looking at. There are reports of markets crashing. But even if homes take a 25% hit from 2024 prices, then they're still 75-100% higher than they were 4-5 years ago.

[Anonymous]

https://www.zillow.com/homedetails/8200-Old-Oaks-Dr-Springfield-VA-22152/51909471_zpid/?mmlb=g,8

This kind of thing kills me. Cheap, cheap flip. They did not change out any of the doors or put in anything special like crown molding. The bathrooms were done on the cheap with no real tile there. Just some paint and new light fixtures (not even something like recessed lighting). They tore out no walls so kitchen is small and they have put a table in there (which makes it look even smaller). It probably has an old HVAC system and old wiring. No landscaping in yard. Price is way too high.

[Anonymous]

Examples abound in CC, Bethesda, and NWDC of houses that have closed under prior sales in 2021-2024. Ditto currently listed houses that have dropped prices below prior sale during that period (after asking for a little more to start). The exceptions are the top houses: perfect location, reasonably/tastefully updated, no weird layout issues. Those still go quickly and often above ask. But everything else has softened.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

Agent here. Especially if you are inside the beltway. Rental market is very strong. Just had an inquiry from a sports figure who wanted to do a six month lease and would pay $2,000 extra month for a short term lease for a total monthly rent of $17,000. Two of my builders are waiting through the market and renting houses that they bought as tear downs. One had three houses in okay shape that he had pained and cleaned. They were rented to recent college graduates for $3,600 to $3,800 a month. Other had a house that broke my heart that he was tearing it down. He had it painted and rented to two military officers for $4,200 a month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

Agent here. Especially if you are inside the beltway. Rental market is very strong. Just had an inquiry from a sports figure who wanted to do a six month lease and would pay $2,000 extra month for a short term lease for a total monthly rent of $17,000. Two of my builders are waiting through the market and renting houses that they bought as tear downs. One had three houses in okay shape that he had pained and cleaned. They were rented to recent college graduates for $3,600 to $3,800 a month. Other had a house that broke my heart that he was tearing it down. He had it painted and rented to two military officers for $4,200 a month.

That makes sense. There’s so much economic uncertainty in this area that it makes sense to rent. A recently hired colleague asked me about the wisdom of buying a condo in this environment (she had one that she identified that she could afford to buy) and I advised her to keep renting

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

[Anonymous]

No. They sent to be jacked up into ridiculous territory. Desperate hope, I guess.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

If selling is being driven by job loss or relocation and the home is a primary residence then the calculation will be very different.

The WaPo just published a very bleak article on of the DC economy, which looks better on paper right now because of deferred resignation programs: https://apple.news/AD9Ubpm5hRHikb07Dw5IMCw

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

If selling is being driven by job loss or relocation and the home is a primary residence then the calculation will be very different.

The WaPo just published a very bleak article on of the DC economy, which looks better on paper right now because of deferred resignation programs: https://apple.news/AD9Ubpm5hRHikb07Dw5IMCw

I think the market will recover eventually, but it could be up to 10 years.