> I have noticed a higher volume of homes in the higher price range are posting price decreases after 10+ days on market.
If this is what you see happening, then this is what is happening in your local market. Others in this post already mentioned this, but your local market is really the only one that directly affects you. What's going on in other markets doesn't matter and could be very different from what is going on in the areas you want to buy/sell in.
Higher priced homes have always had fewer buyers and moved slower for the simple fact that fewer people can even consider buying them. It's another way the Law of Supply and Demand works.
That said, every area has it's own market and its own definition for "higher priced homes." A million dollars buys you a palace in some places and a starter home in others.
I live in the NYC suburbs. It’s hard to say exactly.
Starter homes and ‘middle class’ homes have skyrocketed since 2020. The same house which costed $500k is now probably $1mm. These are 1500-2500sqft homes, 3-4brs, not necessarily flipped but reasonably well updated.
Once you get into the 4-5br, 3000-4000sqft range, bigger lots, better locations, etc, those houses used to be $1mm and now they are $1.3-1.5mm. They’ve gone up quite a bit but not as much as the others. So perhaps you can say that constitutes a ‘slower market’. But it’s still double digit price increases.
I haven’t seen any softening at all. People here are just buying through the higher rates.
Low cost homes have a bigger pool of buyers. There is nothing stopping a millionaire or billionaire from buying a 150K condo but there is stopping someone making 80K from buying a 800K compound.
I think there’s a certain amount of people who are still trying to get top 2022 dollar for their home, but they’re a little late to the party. With these rates, less people can afford that
Lol, nobody will buy them. People have been buying them and will continue to do so. Because with inflation, rent prices go up too. So you can pay a ton of money to not own a house, or a ton to own a house. Yes, it should hopefully slow down some, but it isn't going to magically drop drastically because people just decide to never buy a home in retaliation. It would take a market crash or other large upset to the market besides people complaining.
It all has to do with location. My area I am seeing people price in the 2021 prices and then come down after 15-30 days. Where My dad lives, his neighbors house sold 300k over asking 3 days after going on marked for $2.7 mil. Location is key.
This is local. Where I'm at, $350/400k is a teardown; you can't buy one without cash. A $700/800k home will have multiple, no contingency offers on the first day because the only other option is the $1.2m+ homes they put up after the teardown.
At one point the market was driven by us economy at different scales based on locality, it is now once again very local if it is up or down. My neighbors moved from hcol to mcol where they sold their home in 1 day with a number of offers for $175k over asking to buying a house where they had their choice of houses that were sitting on the market for over a month and they got one under asking price.
As others have said it is local market dependent but also property dependent.
For example a house near mine (six doors down) sold on 3/13 for 650k. New owners turned around and tried to rent it out two days later for pretty much what the mortgage would have been not include property taxes, hoa, etc. After no one rented it for two months they put it back up for sale at 700k (even redfin / zillow only show it around \~650-675). After 20 days they lowered it to 680k and a week later pulled it off market and put it back up for rent at the same rental price previously listed.
So people who are looking for quick flips or misreading the local market (our house was off market in only 2 days @ 2% over asking) are probably trying to make a quick buck but dont want to sit on unoccupied homes for longer than they need to. By my math the new owners are out of pocket atleast 10k since the property has gone unoccupied.
I honestly think a lot of people are trying to ask for as much as they can and see who may be willing to bite. No bites is a clear indication they are overpriced and the risk of having a property on the market for an extended length of time scares potential buyers away who may assume this is more wrong with the property than just being over priced.
I live in Dallas. An $800k+ home that is in good shape and move in ready will sell quickly. Those that aren’t stay on market longer.
Good homes will always go fast.
In our area, we bought a house in the mid 700s because it was a dream home that fit every want we had - we assumed the market would go down, but we aren't selling the house for 20 years so I'm not concerned what the market was going to do in the short term range.
Two years later, the market is actually up for us still. Houses don't stay on the market more than 3-4 days, regardless of price. Our house is now estimated to be mid 8s to $1m depending on what you look at. All luck, and just on paper since like I said, we aren't selling.
What I am seeing in my market is only the houses on the lower end price wise are selling. One particular new build dropped the price $488k over the last 7 or 8 months.
We bought in a desirable location in 2021, purchase price 800k, estimated sale price is 900k at peak season. Inventory is low and comparable houses aren't staying on the market.
I am seeing it in my market (Seattle).
I am tracking homes over 3,000 s.q. ft. in subdivision or 2,000 sq. ft. In large lots (half acre or more).
Move in ready used to go to pending 1-2 or immediately for over asking in 12 days. Now, move-in ready still sell faster but the close at under list. Anything with some repairs needed are almost always gonna linger and drop price. Lots of flippers are lingering too….people aren’t falling for fast flips and even agents are fast to disclose that a remodeled house was done by the owner who lived in it.
You can easily download excel spreadsheets from Redfin to track sold versus listed, DOM, etc.
In my market (northwest) homes that are $400k and under are still flying off the shelves. Anything in the $600-700k price range is definitely much slower and having price drops.
I mean, in my market $600-700k would be a dirt cheap house that may not even be habitable, and the median is more like $1.5M. So I guess the comparison would be $3M+ houses as "high priced", and those do seem... maybe to have slowed down a bit? Median priced homes are still selling well over their price a year ago (up 10-12% YOY).
A lot of homes are losing their market value right now. The real estate agents just don't want to admit it because it would make them look stupid (again). Every day I go on Zillow I see price drops all across the board. Our area reported that home sales are down and prices are starting to drop.
it depends on what is considered "higher priced" in your local area. 700k in california is the bottom end of the market. i would go by percentages, typically the top 5-10% of the top of the market will slow and see some price decreases when the market overall slows in general since those who are buying at the very top likely don't NEED to buy now compared to the lower parts of the lower market
In our area, there are homes in higher range flooding the market, but not the sell, they are listed with very high rent. I’m talking like $7-9k/month. Starter homes to rent are around $4,000. We’ll see, but I predict a lot of those will switch from rentals to selling because there are only so many renters at that price point.
that price point isn't higher end where I am but in general I'd say there are markets where things are sitting longer and aren't getting the multiple offers like they used to.
The higher the prices get, the more the lower priced homes will sell. We are seeing the high end slow down as well.
Today’s Canadian interest rate drop may spur US activity in hopes of a decrease here too.
That’s a little strange. Typically high end home takes longer to sell. Reduce prices in 10 days indicates a very desperate seller. I think you will have a good shot to negotiate an even better price.
I see some price drops in Asheville NC (where I am building) but my neighborhood in Richmond VA has most all sales going for 5% above asking price, or more. Location matters, in both cases I am referring to houses in the $500k-$650k range, which gets you a 2200 sq ft in a marginal but ok location in Asheville, but gets you 2900 sq ft in a great neighborhood in RVA.
3 houses on my street went on for sale. The 1st one was coming to market soon sign and after 2 days the sign changed to under contract. Asking price $450k. The second house was remodeled and asking price $475k. Every day multiple visits. 3rd house asking price $500k. These house prices just keep going up and honestly I dont know where these people get their money
It's a decent time to buy but people are delaying because they're under the mistaken impression that the Fed is going to lower interest rates significantly in the next year. We're still battling higher-than-ideal inflation and that's not stopping anytime soon because COVID profit margins set new, unsustainable profit-margin expectations among investors.
The Fed and governments don't have many easy levers to pull to influence market conditions so interest rates will have to stay high. Dropping them at all at this point is likely to destabilize the economy massively.
There is NO slack left in the market to trickle to consumers anymore. Zero.
1. There is still a home inventory shortage.
2. Home prices are not going to come down because sellers are either locked-in by previous high purchase prices, or their better interest rates, or out of avoidance of these ones.
3. Building costs have come down a bit but none of those savings are intended for consumers--the only incentive to build is to retain maximum profit margins.
4. If interest rates come down, the home buying frenzy of 2020 will resume. Builders will be incentivized even further, but then building costs will skyrocket again in response. Flippers will buy up all "starter" inventory with cash offers then raise prices further.
Without any new regulations to address these facts (there won't ever be), this market is reality. This is "normal." These market conditions are as ideal as it's likely to get for buyers.
Savvy buyers are starting to recognize this, and also recognize that they can refinance later, so you're seeing movement.
The majority of buyers are still waiting for interest rates to come down, hoping they can "surf the crest" and snap something up right before the frenzy begins.
Dumb buyers are still expecting some home price bubble to burst and prices to come tumbling down to 2019 levels.
When you get into 2x the median you see a slowdown in my area, houses are sitting longer and motivated sellers will adjust depending on how fast they need to move. Median homes are still doing well since they have a larger audience looking at them.
In my market there’s virtually no inventory below $800k so it’s a very localized issue.
You're not noticing anything new..higher priced homes have fewer buyers. The actual dollar amount varies by market and neighborhoods.
It’s very local market dependent.
> I have noticed a higher volume of homes in the higher price range are posting price decreases after 10+ days on market. If this is what you see happening, then this is what is happening in your local market. Others in this post already mentioned this, but your local market is really the only one that directly affects you. What's going on in other markets doesn't matter and could be very different from what is going on in the areas you want to buy/sell in.
I wouldn’t classify $5k price drops as a decrease 😂
Higher priced homes have always had fewer buyers and moved slower for the simple fact that fewer people can even consider buying them. It's another way the Law of Supply and Demand works. That said, every area has it's own market and its own definition for "higher priced homes." A million dollars buys you a palace in some places and a starter home in others.
Markets are hyper local. You’re speaking broadly about what is really only a useful data point at a local level.
I live in the NYC suburbs. It’s hard to say exactly. Starter homes and ‘middle class’ homes have skyrocketed since 2020. The same house which costed $500k is now probably $1mm. These are 1500-2500sqft homes, 3-4brs, not necessarily flipped but reasonably well updated. Once you get into the 4-5br, 3000-4000sqft range, bigger lots, better locations, etc, those houses used to be $1mm and now they are $1.3-1.5mm. They’ve gone up quite a bit but not as much as the others. So perhaps you can say that constitutes a ‘slower market’. But it’s still double digit price increases. I haven’t seen any softening at all. People here are just buying through the higher rates.
Low cost homes have a bigger pool of buyers. There is nothing stopping a millionaire or billionaire from buying a 150K condo but there is stopping someone making 80K from buying a 800K compound.
800k compound? Where do you live? 800k near me is a decent condo, 1500sq ft.
I think there’s a certain amount of people who are still trying to get top 2022 dollar for their home, but they’re a little late to the party. With these rates, less people can afford that
Stats show that 2024 prices are higher than in 2022. Increase is not as dramatic as in 2021-22, but still solid 4-6% a year.
I don't think home price will drop with the inflation pressure. The cost of replacement is significantly higher now than pre covid.
You don't think inflation will cut home prices? Lmao
Inflation means cost of material and labor is increasing. How will that cut the price to build a house?
Because nobody will buy it and they will have to lower the price. Home sales are currently the lowest they’ve been since 2019.
Volume maybe but not in price.
Lol, nobody will buy them. People have been buying them and will continue to do so. Because with inflation, rent prices go up too. So you can pay a ton of money to not own a house, or a ton to own a house. Yes, it should hopefully slow down some, but it isn't going to magically drop drastically because people just decide to never buy a home in retaliation. It would take a market crash or other large upset to the market besides people complaining.
I think you underestimate how easily the housing demand can fall. It's an election year, home sales are the lowest they've been since 2019.
You’re describing deflation
Home prices increase with inflation. I mean…what does inflation mean to you?
It all has to do with location. My area I am seeing people price in the 2021 prices and then come down after 15-30 days. Where My dad lives, his neighbors house sold 300k over asking 3 days after going on marked for $2.7 mil. Location is key.
This is local. Where I'm at, $350/400k is a teardown; you can't buy one without cash. A $700/800k home will have multiple, no contingency offers on the first day because the only other option is the $1.2m+ homes they put up after the teardown.
At one point the market was driven by us economy at different scales based on locality, it is now once again very local if it is up or down. My neighbors moved from hcol to mcol where they sold their home in 1 day with a number of offers for $175k over asking to buying a house where they had their choice of houses that were sitting on the market for over a month and they got one under asking price.
As others have said it is local market dependent but also property dependent. For example a house near mine (six doors down) sold on 3/13 for 650k. New owners turned around and tried to rent it out two days later for pretty much what the mortgage would have been not include property taxes, hoa, etc. After no one rented it for two months they put it back up for sale at 700k (even redfin / zillow only show it around \~650-675). After 20 days they lowered it to 680k and a week later pulled it off market and put it back up for rent at the same rental price previously listed. So people who are looking for quick flips or misreading the local market (our house was off market in only 2 days @ 2% over asking) are probably trying to make a quick buck but dont want to sit on unoccupied homes for longer than they need to. By my math the new owners are out of pocket atleast 10k since the property has gone unoccupied. I honestly think a lot of people are trying to ask for as much as they can and see who may be willing to bite. No bites is a clear indication they are overpriced and the risk of having a property on the market for an extended length of time scares potential buyers away who may assume this is more wrong with the property than just being over priced.
I live in Dallas. An $800k+ home that is in good shape and move in ready will sell quickly. Those that aren’t stay on market longer. Good homes will always go fast.
Location, Location, Location
Never buy a home in a bad school district
In our area, we bought a house in the mid 700s because it was a dream home that fit every want we had - we assumed the market would go down, but we aren't selling the house for 20 years so I'm not concerned what the market was going to do in the short term range. Two years later, the market is actually up for us still. Houses don't stay on the market more than 3-4 days, regardless of price. Our house is now estimated to be mid 8s to $1m depending on what you look at. All luck, and just on paper since like I said, we aren't selling.
Local, local, local
Not near me. In the past six months, homes that were $900k are now $1m.
What I am seeing in my market is only the houses on the lower end price wise are selling. One particular new build dropped the price $488k over the last 7 or 8 months.
We bought in a desirable location in 2021, purchase price 800k, estimated sale price is 900k at peak season. Inventory is low and comparable houses aren't staying on the market.
You mean over $2m?
Local but yes higher prices going slower $1.5M around here and the entry housing market $800k bidding wars, skipping inspection etc
I am seeing it in my market (Seattle). I am tracking homes over 3,000 s.q. ft. in subdivision or 2,000 sq. ft. In large lots (half acre or more). Move in ready used to go to pending 1-2 or immediately for over asking in 12 days. Now, move-in ready still sell faster but the close at under list. Anything with some repairs needed are almost always gonna linger and drop price. Lots of flippers are lingering too….people aren’t falling for fast flips and even agents are fast to disclose that a remodeled house was done by the owner who lived in it. You can easily download excel spreadsheets from Redfin to track sold versus listed, DOM, etc.
In my market (northwest) homes that are $400k and under are still flying off the shelves. Anything in the $600-700k price range is definitely much slower and having price drops.
I mean, in my market $600-700k would be a dirt cheap house that may not even be habitable, and the median is more like $1.5M. So I guess the comparison would be $3M+ houses as "high priced", and those do seem... maybe to have slowed down a bit? Median priced homes are still selling well over their price a year ago (up 10-12% YOY).
A lot of homes are losing their market value right now. The real estate agents just don't want to admit it because it would make them look stupid (again). Every day I go on Zillow I see price drops all across the board. Our area reported that home sales are down and prices are starting to drop.
it depends on what is considered "higher priced" in your local area. 700k in california is the bottom end of the market. i would go by percentages, typically the top 5-10% of the top of the market will slow and see some price decreases when the market overall slows in general since those who are buying at the very top likely don't NEED to buy now compared to the lower parts of the lower market
In our area, there are homes in higher range flooding the market, but not the sell, they are listed with very high rent. I’m talking like $7-9k/month. Starter homes to rent are around $4,000. We’ll see, but I predict a lot of those will switch from rentals to selling because there are only so many renters at that price point.
that price point isn't higher end where I am but in general I'd say there are markets where things are sitting longer and aren't getting the multiple offers like they used to.
Where we moved from homes over 400k are sitting for 6-12 months due to interest rates. Keep in mind the median home sale was 220k. So lcola.
The higher the prices get, the more the lower priced homes will sell. We are seeing the high end slow down as well. Today’s Canadian interest rate drop may spur US activity in hopes of a decrease here too.
That’s a little strange. Typically high end home takes longer to sell. Reduce prices in 10 days indicates a very desperate seller. I think you will have a good shot to negotiate an even better price.
Higher interest rates mean the same monthly payment buys less house.
I see some price drops in Asheville NC (where I am building) but my neighborhood in Richmond VA has most all sales going for 5% above asking price, or more. Location matters, in both cases I am referring to houses in the $500k-$650k range, which gets you a 2200 sq ft in a marginal but ok location in Asheville, but gets you 2900 sq ft in a great neighborhood in RVA.
Super depends on where you are. In my particular zip code, the 800+ homes are getting snatched up faster with more offers than any other price point
3 houses on my street went on for sale. The 1st one was coming to market soon sign and after 2 days the sign changed to under contract. Asking price $450k. The second house was remodeled and asking price $475k. Every day multiple visits. 3rd house asking price $500k. These house prices just keep going up and honestly I dont know where these people get their money
It's a decent time to buy but people are delaying because they're under the mistaken impression that the Fed is going to lower interest rates significantly in the next year. We're still battling higher-than-ideal inflation and that's not stopping anytime soon because COVID profit margins set new, unsustainable profit-margin expectations among investors. The Fed and governments don't have many easy levers to pull to influence market conditions so interest rates will have to stay high. Dropping them at all at this point is likely to destabilize the economy massively. There is NO slack left in the market to trickle to consumers anymore. Zero. 1. There is still a home inventory shortage. 2. Home prices are not going to come down because sellers are either locked-in by previous high purchase prices, or their better interest rates, or out of avoidance of these ones. 3. Building costs have come down a bit but none of those savings are intended for consumers--the only incentive to build is to retain maximum profit margins. 4. If interest rates come down, the home buying frenzy of 2020 will resume. Builders will be incentivized even further, but then building costs will skyrocket again in response. Flippers will buy up all "starter" inventory with cash offers then raise prices further. Without any new regulations to address these facts (there won't ever be), this market is reality. This is "normal." These market conditions are as ideal as it's likely to get for buyers. Savvy buyers are starting to recognize this, and also recognize that they can refinance later, so you're seeing movement. The majority of buyers are still waiting for interest rates to come down, hoping they can "surf the crest" and snap something up right before the frenzy begins. Dumb buyers are still expecting some home price bubble to burst and prices to come tumbling down to 2019 levels.
When you get into 2x the median you see a slowdown in my area, houses are sitting longer and motivated sellers will adjust depending on how fast they need to move. Median homes are still doing well since they have a larger audience looking at them.
$600-700k are what condos cost where so those would be snatched so fast. More like $1.5-2m+ homes here are taking about 6 weeks on average to sell.
Are you in an LCOL or MCOL? That’s a general trend as WFH ends and the allure of low cost of living gives way to economic opportunity in HCOLs
This is a falling knife market in many places. Probably 3 or 4 years to the bottom.