Anonymous
08/01/2025 17:52
Subject: Are sellers cutting prices in your area?
Anonymous wrote:Are sellers cutting prices in your area?
First time buyers wish!
Anonymous
08/01/2025 17:09
Subject: Are sellers cutting prices in your area?
Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.
This is pretty dumb. Lots of people list as rentals using rationales like -- "I can get enough rent to cover the mortgage," "I can't get the price that my neighbor got last year," or "the price I'll get is less than what I paid." These are all terrible, sloppy rationales.
The only relevant question is what the best use of your money is. If someone has done the math on how much they'll make by renting out their property (factoring in vacancies, property tax, and maintenance) versus investing the funds they have tied up in the house, and renting out the property is better, then that's great. But I don't think many people do the math and they instead just use the sloppy rationales from the prior paragraph.
Anonymous
08/01/2025 16:45
Subject: Re:Are sellers cutting prices in your area?
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.
+1. Lifelong Fairfax county resident. Purchased first home in 1993 and had to sell it 1999 at lower than purchase price. Yes… the run up can’t go on. RE runs in cycles and I believe the next 7-8 will be down cycle - until wages catch up.
Anonymous
08/01/2025 14:22
Subject: Re:Are sellers cutting prices in your area?
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.
Anonymous
08/01/2025 14:15
Subject: Re:Are sellers cutting prices in your area?
Anonymous wrote:
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?
What RE markets are you following?
Anonymous
08/01/2025 13:08
Subject: Re:Are sellers cutting prices in your area?
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?
Anonymous
08/01/2025 13:04
Subject: Are sellers cutting prices in your area?
Yes, entire 90s prices were flat to downward.
Anonymous
08/01/2025 12:29
Subject: Re:Are sellers cutting prices in your area?
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.
yup. younger people probably don't know this. We bought our first house for 180K in '91 when we married. By '99 with kids, we needed a larger house and sold at 175K, essentially a 25K+ loss when you consider we upgraded the kitchen. But our salaries had tripled due to the dot.com boom. I think life would be easier for everyone if salaries increased at faster rates than real estate.
Anonymous
08/01/2025 12:27
Subject: Are sellers cutting prices in your area?
We are seeing price cuts in Bethesda and North Bethesda area.
Anonymous
08/01/2025 11:37
Subject: Are sellers cutting prices in your area?
I’m near the Arlington / FCC border and have been surprised by a few price drops (22205 and 22046), which is historically not the norm.
Interestingly the very expensive new builds seem to be chugging along (at least construction-wise, not sure if any will sit).
But the homes in the ~ $1-1.3M range are dropping prices, which is the range that usually goes over asking. I think the people buying in this bracket are on a tighter budget and were stretching or willing to concede on space/floorplan/curb appeal etc. to be close-in. But now with so much insecurity in the fed gov buyers who are heavily reliant on a regular UMC paycheck (vs family money, investment accounts, big law savings, etc.) are too squeezed and uncertain to buy these homes.
Interestingly the very expensive new builds seem to be chugging along (at least construction-wise, not sure if any will sit).
But the homes in the ~ $1-1.3M range are dropping prices, which is the range that usually goes over asking. I think the people buying in this bracket are on a tighter budget and were stretching or willing to concede on space/floorplan/curb appeal etc. to be close-in. But now with so much insecurity in the fed gov buyers who are heavily reliant on a regular UMC paycheck (vs family money, investment accounts, big law savings, etc.) are too squeezed and uncertain to buy these homes.
Anonymous
08/01/2025 11:36
Subject: Re:Are sellers cutting prices in your area?
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.
Anonymous
08/01/2025 11:33
Subject: Re:Are sellers cutting prices in your area?
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.
Or they just expect to make a profit. It will take a while for people to accept a downturn, if that is what is happening.
Anonymous
08/01/2025 11:29
Subject: Re:Are sellers cutting prices in your area?
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.
Anonymous
08/01/2025 11:15
Subject: Are sellers cutting prices in your area?
Anonymous wrote:Anonymous wrote:This isn't a good time to sell. If you can wait, then spend the next few months getting your house ready to sell (fix broken things and declutter).
Then be ready to list whenever the Spring market starts in 2026. It started in January for 2025.
Why would next years spring market be any better? The Trump $hitshow isn’t going anywhere.
Amen to this. It’s gonna get worse before it gets better.
Anonymous
08/01/2025 11:07
Subject: Are sellers cutting prices in your area?
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.)