Prices dropping in MoCo???
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
The tariffs began today. We are near NIH. IMO, well-priced houses sold while others sit (price drops have not moved them to date). |
Anonymous
Both of these houses first went on the market in 2023, but for some reason the second one didn't sell until now. Market may very well be dropping but this doesn't tell us that. |
Anonymous
Adding both were built in 2023 |
Anonymous
I am not the PP, but this clearly says that market has dropped from 2023. I won't pay attention to exact 300K drop, but that kind of price difference leaves no room for any doubts that market has shifted. |
Anonymous
| What about rental units? Are rents going down? |
Anonymous
I am close from that street. Market has shifted for sure. It make sense, you can't have the same market at 3-4% vs 6-7% rate. Lots of buyers who could clear the hurdle to buy earliert, now can't clear it with such a high interest rates. |
Anonymous
A bit of softening perhaps, but nothing like house prices. |
Anonymous
No, it says that two houses built in 2023 depreciated by 2024/2025 because they were no longer new construction. It's like saying car prices are going down based on you selling your new Civic a week after you bought it. |
Anonymous
A car's price goes down as soon as it's driven off the lot. Houses are supposed to appreciate in value over time, not depreciate like a car's. |
Anonymous
The value of the land appreciates. The improvements depreciate. And a brand new construction home will absolutely depreciate quickly. |
Anonymous
That's ridiculous. People buy houses specifically because they appreciate over time. |
Anonymous
|
If this White House stays on its current tariffs path, next spring will be a buyer's market. Right now, it's betwixt and between. Definitely not the seller's market it was before, though.
This is mostly bad news, because real estate around capital cities never drops unless there's a recession. So a few buyers will have enough savings to get a house for less than they would have last year, but many more people have or will lose their job and suffer. |
Anonymous
You don't get what PP is saying. The LAND appreciates. The HOUSE depreciates. In other words, what you're looking for is land. The age of the house is of little importance, as long as it's well-maintained. The "shiny new" house ends up being just a regular house as soon as people move in. This is general. Local pressures can change the equation. If the property was in-bounds for a great public school district and is rezoned to a terrible one, then there will be a an immediate depreciation of the land value (and perhaps afterward a re-appreciation if the new school gets better scores years later). If a new rail line gets built, the land appreciates if the property is walking distance to the station, or depreciates if the rail impinges on the view or the noise level in the backyard. Etc, etc. |
Anonymous
I did not post in this thread but this responce cracked me up. House is not a car. 300K deprecaition for new house which was not used by anyone in 1-2 years, lol. If I have to guess, I would say that you are a builder. I don't see anyone else making such arguments. |
Anonymous
No, even house appreciates with time and not just land due to constructions prices going up. Over a very long time, house does depreciates and becomes a tear down. You are correct in that, but appreciation in the last 5 years is not just due to land appreciating. It's land + contruction cost going up. Also, in above example, no one had moved in the house. Builder sold two houses , same plot size, same plan. One sold for 300K less. That's not due to depreciation in 1-2 years. It's market going down for new build. I work in title company. Based on prices, market has certainly shifted. |